Ethiopia and the European Union have formalized a €240 million grant agreement under the 2024 Annual Action Programme at the Ministry of Finance. This initiative underscores the EU’s sustained commitment to Ethiopia’s economic advancement, institutional development, and resilience-building efforts.

The European Union has been a longstanding partner in Ethiopia’s development trajectory, supporting various programs aimed at economic stabilization, institutional capacity-building, and social welfare enhancement. This latest agreement is designed to further these objectives through targeted financial support.

The allocated funding is expected to bolster economic activities by fostering trade expansion, productivity enhancement, and employment generation. Additionally, resources will be directed toward strengthening public services, particularly in education and healthcare, to improve overall social welfare. Governance and institutional reforms remain a priority, with investments aimed at enhancing transparency, legal frameworks, and administrative efficacy. A significant portion of the grant will also support climate adaptation initiatives, renewable energy projects, and sustainability measures.

During the signing ceremony, Ethiopia’s Minister of Finance, Ahmed Shide, emphasized the transformative potential of the agreement, noting that it aligns with the nation’s broader economic and governance reform agenda. EU Ambassador to Ethiopia, Roland Kobia, reiterated the EU’s strategic interest in fostering Ethiopia’s long-term stability and prosperity.

This grant forms part of the EU-Ethiopia Multiannual Indicative Programme for 2024–2027, which establishes a structured framework for bilateral cooperation. Measures to ensure the transparent and efficient utilization of the funds will be incorporated into the implementation process. The agreement represents a significant milestone in the evolving Ethiopia-EU partnership, fostering deeper collaboration in pursuit of sustainable economic growth and institutional progress.