Somalia and European Union Seal €102 Million Financial Package to Bolster State-Building and Fiscal Stability MOGADISHU, Somalia — The Federal Government of Somalia and the European Union (EU) have formalized a significant financial cooperation agreement worth €102 million.
The agreement, signed in Mogadishu on Friday, aims to support state — building initiatives and underpin recent fiscal reforms in the nation.
The signing ceremony followed high — level strategic discussions between EU representatives and senior cabinet members of the Federal Government.
The Somali delegation was led by the Minister of Finance, H. E. Biixi Imaan Cige, and the Minister of Planning, Investment and Economic Development, H.
E. Mohamud Abdirahman “Beenebeene. ” Central to the discussions was the alignment of EU development aid with Somalia’s National Development Plan.
The €102 million package is focused on enhancing the institutional capacity of the federal government, financing national development priorities, and offering consistent budget support. This funding mechanism will enable the government to maintain essential public services while advancing its economic modernization agenda. Minister Biixi Imaan Cige expressed gratitude for the EU’s ongoing partnership, emphasizing the role of budget support in the country’s recent economic stability.
The Minister highlighted that these funds are crucial for meeting recurrent expenditures and facilitating long — term development projects that stimulate economic growth. This agreement underscores the strategic alliance between Mogadishu and Brussels, reflecting the international community’s confidence in Somalia’s financial governance and its path towards self-reliance and institutional maturity. Further details regarding the implementation of the package and its specific impact on state-building and fiscal stability are expected to be announced in the coming days.
Source: sonna.
