• Somalia and the European Union signed a €30 million ($35.5 million) agreement to support governance, resilience and economic growth.

• The deal forms part of a broader €102 million EU funding package targeting education, migration management and community infrastructure.

• The IMF expects Somalia’s economic growth to slow to 3% in 2025 from 4.1% in 2024 amid aid cuts and climate shocks.

Somalia and the European Union signed a €30 million agreement, equivalent to about $35.5 million, to support governance, resilience and economic growth. The EU delegation in Somalia announced the agreement on Sunday, February 1, 2026, through its official Facebook page.

The agreement forms part of four EU financing programs totaling €102 million that the parties signed on January 30. The programs aim to support education, migration management and community strengthening through infrastructure and livelihood development. The funding falls under the European Union’s Global Gateway initiative.

Somalia increasingly relies on foreign aid to deliver essential services after decades of civil war. The International Monetary Fund said economic prospects deteriorated in 2025 and 2026 amid sharp cuts in international assistance and adverse climate shocks. The IMF estimated economic growth at 3% in 2025, compared with 4.1% in 2024.

To strengthen economic resilience and boost employment, Somalia needs sustained reforms, particularly in public finance management and the private sector. The World Bank said reforms that promote sustainable public finances will expand fiscal space for investments in human capital and infrastructure. The institution said these investments remain essential to economic growth, job creation and poverty reduction.

This article was initially published in French by Lydie Mobio

Adapted in English by Ange J.A de BERRY QUENUM