Ethiopia and EU Forge New Economic Partnership with €90 Million Financing Agreement

Addis Ababa, October 28, 2025 — A significant financing agreement amounting to €90 million has been signed between the Ethiopian Ministry of Finance and the European Union (EU), aimed at supporting the Annual Action Plan (AAP) for 2025. This landmark agreement highlights the renewed cooperative efforts between Ethiopia and the EU in addressing the country’s development needs.

Understanding the Financing Agreement

This agreement acknowledges Ethiopia’s ongoing economic reforms, which are crucial for the nation’s post-conflict recovery. The signing ceremony took place in Addis Ababa, with notable representatives present, including Semereta Sewasew, Ethiopia’s State Minister for Finance, and Sofie From-Emmesberger, the EU Ambassador to Ethiopia.

Symbolic and Strategic Importance

Semereta Sewasew emphasized the profound implications of this financing initiative, labeling it as both symbolic and strategic in nature. It represents a significant milestone in the enduring partnership between Ethiopia and the EU, a relationship rooted in shared history and sustained through mutual cooperation.

Expanding European Cooperation

Ambassador From-Emmesberger pointed out that this partnership opens doors to broader cooperative avenues between Ethiopia and EU member states. By leveraging the Multiannual Indicative Programme (MIP), alongside the Global Gateway Initiative, further investment opportunities can be unlocked, yielding mutually beneficial outcomes.

Alignment with National Priorities

The initiatives under the AAP-2025 are designed to complement key national initiatives, effectively aligning with the Government of Ethiopia’s priorities. This alignment will be executed through the collaborative “Team Europe” approach, which involves coordinated efforts among EU member states.

Supporting Economic Reform

As discussed by Ambassador From-Emmesberger, the AAP is closely intertwined with Ethiopia’s Home-Grown Economic Reform Agenda and contributes to the overarching Global Gateway Strategy. This approach emphasizes crucial initiatives, including:

• Strengthening land governance
• Enhancing nature conservation
• Empowering women
• Supporting migrant integration

Each of these components is vital to ensuring sustainable development in Ethiopia.

Commitment to Climate Resilience and Biodiversity

The AAP-2025 also aligns with Ethiopia’s Green Legacy Initiative, which focuses on biodiversity conservation and the establishment of a climate-resilient green economy. This commitment underpins the strategic objectives tied to the agreement.

Engaging the Business Community

In conjunction with the financing agreement, a Public-Private Dialogue (PPD) was held with European businesses operating in Ethiopia. The PPD aimed to tackle obstacles in the business environment, such as customs procedures, taxation, investment protection, legal predictability, and land lease issues.

Addressing Challenges in the Business Landscape

Ethiopian Investment Commissioner Zeleke Temesgen highlighted the importance of the PPD in identifying and mitigating barriers faced by European businesses. The dialogue helps enhance the investment climate and explore new cooperation pathways.

Ensuring Ongoing Engagement

Temesgen emphasized the necessity of establishing a consistent dialogue framework between the Ethiopian government and EU businesses. This strategy is essential for monitoring progress on agreed actions and maintaining continuous engagement.

Collaborative Efforts for Future Prosperity

The EU Delegation to Ethiopia expressed appreciation for the collaborative efforts among Ethiopian ministries, agencies, and EU teams in preparing the Annual Action Plan. The collective efforts are geared toward translating both regions’ partnerships into impactful actions for peace, prosperity, and improved welfare of their populations.

By reinforcing this partnership, both Ethiopia and the EU are set to navigate challenges together, exploring innovative solutions that promote socio-economic stability and sustainable development in the region.

For more information about the EU’s initiatives and support in Ethiopia, visit the European Union’s official website.