This payment of EUR 13.5 million to the national treasury is a part of an EU-financed programme for Somalia that began in 2018 and amounts to EUR 92.9 million in budget support and debt relief. Such aid is divided into fixed and variable payments, the latter of which is based on the success of a predetermined set of economic and social reforms.
The EU’s direct financial assistance to the federal budget is intended to help Somalia implement its National Development Plan (NDP-9) and advance its economic reforms toward reaching the HIPC Initiative’s Completion Point. With this payment, Somalia has received a total of EUR 71.9 million from this programme.
Ms Tiina Intelmann, EU Ambassador to Somalia, noted, “President Hassan Sheikh Mohamud recently expressed his commitment to pursue political, security and economic reforms. This provides a basis for constructive engagement between Somalia and the EU. I am therefore glad to announce that today we have been able to resume our budget support operations. This is part of our commitment to support Somalia’s inclusive growth, reconciliation and state building efforts.”