The European Union and Somalia government are working together to improve governance, education and crate jobs in the Horn of Africa nation.

A statement from the EU offices in Nairobi said on Saturday that EU special envoy for Somalia Michele Cervone d'Urso and President of Somalia Hassan Sheikh Mohamud have also launched together the new EU development package of 158 million euros that will be implemented in line with the priorities of the Somali government.

"The EU has substantially increased its development budget for Somalia. In doing so, the EU is paying tribute to the peaceful political transition and takes into account the huge development needs of the Somali people," d'Urso said.

"The EU wants indeed to express its full confidence in the governance and peace building progress in Somalia and is committed to a robust EU-Somalia partnership with strong Somali ownership."

Somalia has formed an inclusive and democratic government that has inspired the international community to partake in the reconstruction of the fragile horn of African state.

But analysts say despite recent advances in Somalia's peace and national reconciliation process, after decades of warfare, the country is still dealing with the impact of the Al-Shabaab militant group, which has been pushed out of Mogadishu but still controls a few areas, primarily in south-central regions.

The top diplomat for the Horn of Africa who assumed his duties on Sept. 21 after being appointed to the new position has confirmed to the Somali authorities that he will open a new chapter in the relations between Somalia and the EU, aiming at a true and balanced partnership.

The EU envoy has also emphasized the need for more Somali ownership in the Somali relations with the EU, but also with the regional partners and the international community as a whole.

The EU special envoy will also travel to Hargeisa and Garowe to underscore the support being provided under this package to Somaliland and Puntland. This development package is the largest single EU program ever approved for Somalia.

"The new EU package results from the mid-term review that has increased Somalia's development envelope from 212 million to 412 million euros," d'Urso said.

"The additional support will be focused Governance and Security, Democratization, Economic Development, Education, Food Security and Technical Development Assistance."