MOGADISHU, Somalia – The Federal Government of Somalia and the European Union (EU) have formalized a major financial cooperation agreement valued at €102 million. The accord, signed in Mogadishu on Friday, is designed to inject direct capital into the nation’s state-building efforts and provide critical budget support to sustain recent fiscal reforms.
The signing ceremony followed high-level strategic talks between EU representatives—including officials from the EU Office in Somalia and the International Relations division—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 newly approved €102 million package targets specific pillars of governance: strengthening the institutional capacity of the federal government, financing national development priorities, and providing consistent budget support. This funding mechanism allows the government to maintain essential public services while continuing its economic modernization agenda.
Minister of Finance Biixi Imaan Cige expressed deep appreciation for the European Union’s enduring partnership. He highlighted that the EU’s consistent provision of budget support has been a driving force behind the country’s recent economic stability. The Minister noted that these funds are essential not only for meeting recurrent expenditures but also for enabling long-term development projects that stimulate economic growth.
This agreement reinforces the strategic alliance between Mogadishu and Brussels. It marks a continued vote of confidence from the international community in Somalia’s financial governance and its trajectory toward self-reliance and institutional maturity.
