Somalia is on a positive track towards stability and growth. The
EU's move to budget support is a token of the partnership with Somalia
to develop a viable federal system and fostering long-term recovery.
The date of signature coincides with the first anniversary of
Somalia's worst terror attack, which killed over 500 people in
Mogadishu. On this occasion, EU Commissioner for International
Cooperation and Development, Neven
Mimica, said:
“Budget
support shows the EU's trust in Somali institutions. It gives the
Government resources to implement reforms and build a stronger State
able to deliver basic services to its people. Those 100M€ show the EU
delivers quickly, a few months after the Somali Partnership Forum. It
comes at a time where the Horn of Africa is going through unprecedented changes. And Somalia can seize this momentum for its own domestic transformation.
The EU plays a leading role amongst the international community supporting Somalia. It co-hosted the Somalia Partnership Forum
in Brussels in July 2018, when over €1 billion was mobilised to support
the country. In September, the World Bank also agreed a $80 million
pre-arrears clearance package. The engagement of the EU, IMF and World
Bank will not only help accelerating national reforms, but also the
process towards concessional loans and debt relief.
The financing agreement is a €100 million package dedicated to
Somalia's state and resilience building, which will also support access
to basic services. Up to €92 million will go to the federal government
through budget support. The remaining €8 million will support capacity
building to the federal and states' governments and oversight
institutions.
The disbursement of funds will be sequenced and closely monitored
through political dialogue, regular assessment of progress achieved
against indicators and dedicated safeguard measures.
The agreement was signed on 14 October in Mogadishu by European
Commission's Director-General for International Cooperation and
Development, Stefano Manservisi, and the Prime Minister of Somalia,
Hassan Ali Khayre.