Boost for Somalia as EU approves €20.5m budget support

GOOBJOOG NEWS|BRUSSELS: The European Union has approved a €20.5 million direct budget support to the government of Somalia in a major boost to the country’s development agenda.

The EU said Thursday the funds under the EU’s Somalia State and Resilience Building Contract and Support to Debt Relief Action (SRBC) coincide with the FGS and EU launching the Joint Operational Roadmap for a renewed engagement between the EU and Somalia, which outlines joint priorities for the next two years.

EU Ambassador to Somalia, Ms. Tiina Intelmann said the EU supports the FGS to implement its national development and stabilisation plan and remain on track with the Heavily Indebted Poor Countries (HIPC) process.

“With HIPC completion point in sight, Somalia will soon reach a historical milestone, which will bring new opportunities but also challenges. Increasing domestic resource mobilisation and further improving financial governance are absolutely critical to advance the economic reform agenda and further the state-building of Somalia,” Ambassador Intelmann said. “The EU looks forward to continue supporting and working closely with Somalia to tackle these challenges to ensure that more and better services are delivered to Somali citizens.”

Somalia’s Finance Minister Elmi Nur lauded the contribution as critical in strengthening reform in Somalia.

“The EU budget support is an invaluable source of assistance to ensure our government strengthens the ongoing reforms and delivers basic public services to the people”.

Cumulatively, under the SRBC, a total amount of EUR 82.9 million has been released since 2018 as budget support to the Federal Government of Somalia (FGS). The EU budget support operation has assisted the Federal Republic of Somalia to ensure the delivery of core state functions, underpin macroeconomic stabilisation measures and, with the onset of Covid-19 and other concurrent crises, prevent a serious deterioration of the economic and social situation.