Somalia and the European Union (EU) have reached an agreement financing of 30 million euros, or about 35.5 million dollars, intended to support the governance, resilience and economic growth of country. The announcement was made on Sunday, February 1, 2026 on the Facebook page of the EU's representation in Somalia, marking a new stage in the partnership between Mogadishu and Brussels.

This agreement is part of a larger set of funding programs, for a total amount of 102 million euros, signed on January 30. These initiatives aim to support key sectors such as that education, migration management, as well as the strengthening of communities through the development of infrastructures and means of subsistence. All of this funding falls under the European initiative.” Global Gateway”, which aims to promote sustainable investments and inclusive in partner countries.

Somalia remains heavily dependent on external aid to ensure the provision of essential services, after several decades of conflict and instability. According to the International Monetary Fund (IMF), the country's economic outlook deteriorated over the period 2025-2026, in a context marked by a decline in international aid and by shocks unfavorable climatic conditions. Economic growth is thus estimated at 3% in 2025, compared to 4.1% in 2024.

Faced with these challenges, international institutions underline the need to accelerate structural reforms in order to strengthen economic resilience and stimulate job creation. La In particular, the World Bank insists on the importance of financial reforms. public and private sectors. According to the institution, “reforms aimed at promoting sustainable public finances will increase margins fiscal manoeuvres required for investments in development of human capital and infrastructures”, levers considered essential for supporting growth, jobs and poverty reduction in Somalia.