EU to Provide €102 Million in Budget Support to Back Somalia’s Fiscal Reforms

GOOBJOOG NEWS | MOGADISHU: Somalia will receive €102 million in European Union funding under a new cooperation agreement aimed at supporting the federal budget, strengthening state institutions and safeguarding essential public services.

The agreement, signed in Mogadishu, channels EU funds directly into Somalia’s budget framework, allowing the government to finance recurrent expenditures while sustaining reforms in public financial management and economic governance.

According to Somali officials, the package is structured to support implementation of the National Development Plan, with funding earmarked for institutional strengthening, governance reforms and national development priorities. The budget support component is intended to reduce fiscal pressure on the government and improve predictability in public spending.

Finance Minister Biixi Imaan Cige said the funding would help consolidate recent gains in revenue collection and financial discipline, while enabling continued investment in long-term development programmes.

“This agreement ensures continuity in service delivery and reinforces confidence in Somalia’s reform trajectory,” he said, adding that EU budget support has played a key role in stabilising government finances.

The deal was signed in the presence of Planning Minister Mohamud Abdirahman “Beenebeene” and senior EU officials, following talks on aligning development assistance with Somalia’s reform agenda.

Somali authorities said the funding would strengthen government capacity, support economic recovery and reduce reliance on short-term financing, as the country seeks to build resilient public institutions and move toward greater fiscal self-reliance.