The EU on Tuesday launched three new projects worth €11.8 million ($14.3 million) to support the private sector in Somalia.
The projects will significantly step up the EU's engagement in Somalia as the new partnership will enable financial institutions to successfully provide relevant financing to local small- and medium-sized enterprises while supporting the investment climate, according to a statement by the EU.
"Launching three private sector projects (11.8 million euro), comprising revolving funds, guarantees for loans, technical assistance, and collaboration to improve the business climate that may attract European investors to Somalia. Stability brings prosperity," EU ambassador to Somalia Nicolas Berlanga said on Twitter.
The projects will give micro, small, and medium businesses access to credit and improve regulations that will boost the private sector in the Horn of Africa country, he added.
"We welcome the continued support from the EU to achieve a stronger and more prosperous Somalia," Somali Planning Minister Gamal Hassan said at the launching ceremony in the capital Mogadishu.
"Our government has heavily invested in the sector with the aim of creating employment and sustainably growing the economy. These initiatives launched today by the EU support our continued resolve of providing better livelihoods to our people and our local communities," said Somali Deputy Finance Minister Abdullahi Sheikh.