EU and Ethiopia Ink €240M Deal for Sustainable Development

On April 3, 2025, Addis Ababa — The European Union (EU) and Ethiopia have entered into an agreement for the Annual Action Programme (AAP) of 2024, providing funding worth €240 million or approximately 32.3 billion Birr.

Today, Finance Minister Ahmed Shide and EU Ambassador Sofie From-Emmesberger signed the agreement.

As part of this accord, the EU will supply financial and technical assistance totaling €240 million to boost Ethiopia’s progress in various key sectors.

AAP-2024 focuses on key sectors crucial for Ethiopia’s progress, such as promoting agribusiness ventures designed to boost this industry and generate employment opportunities for small-scale farmers.

Strengthening democratic institutions is another focus, providing support for governance and inclusivity to promote stability and resilience in post-conflict scenarios.

The program includes the restoration of basic health services for conflict-affected communities and offers psychosocial support for survivors of gender-based violence.

Additionally, it prioritizes integrated solutions for forced displacement to improve economic opportunities for displaced individuals and refugees, while also reinforcing private sector participation in key value chains to ensure a comprehensive approach to sustainable development.

During the signing ceremony, Finance Minister Ahmed Shide emphasized that the signing symbolizes the deepening of the 50-year partnership between Ethiopia and EU.

"I appreciate the EU's extensive backing through AAP 2024, designed to encourage private investments in agriculture businesses, update taxation and customs processes, and foster developing financial markets. Additionally, this initiative will boost digital competencies within vocational training programs, reinstate crucial healthcare services, reinforce democratic structures, and establish enduring resolutions for internally displaced persons," stated the minister.

Minister Ahmed Shide emphasized the crucial part played by the EU's assistance in tackling Ethiopia’s urgent issues.

He stated that this financial package is essential for encouraging investments from the private sector, updating our tax and customs frameworks, and improving services within sectors like agriculture, healthcare, and education. This strengthens our long-term collaboration and plays a key role in our continuous reform efforts.

Along with the funding announcement, Minister Shide highlighted the importance of discussing how to utilize the EU’s Global Gateway Initiative for promoting regional integration.

He stated, “As we navigate evolving economic landscapes, our focus on regional cooperation is more critical than ever. The Horn of Africa has immense potential for integration, which we can achieve through collaborative initiatives like the Horn of Africa Initiative (HOAI).

The EU Ambassador Sofie From-Emmesberger indicated that the signing of this program underscores the five-decade-long collaboration between Ethiopia and the European Union.

According to her, the programme signed today is a cooperation spanning various sectors, with each contributing to strengthening Ethiopia’s economy, its development and the wellbeing of the people.

Ethiopia is making significant efforts in the agricultural sector, particularly within the coffee sub-sector, and the EU is providing support for these initiatives, as highlighted by the EU Ambassador.

This pact reinforces their joint dedication to sustainable growth, harmony, and economic advancement in Ethiopia.

The signing event for AAP 2024 saw the presence of envoys from the European Union countries.

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