EU reiterates commitment to enhance relations with Ethiopia on investment, sustainable job creation

Addis Ababa, April 8, 2025 (FMC) — The Deputy Secretary General for Economic and Global Issues at the European External Action Service, Simon Mordue reiterated the European Union’s commitment to transitioning its relationship with Ethiopia from traditional development assistance to a more collaborative partnership centered on investment and sustainable job creation.

In a significant move aimed at fortifying the existing partnership between Ethiopia and the EU, State Minister of Finance, Semereta Sewasew held a productive meeting today with a high-level EU’s Head Quarter delegation led by Simon Mordue,

The meeting underscored the essential role of the private sector in driving economic development, trade, and investment, paving the way for future collaboration, according to Ministry of Finance.

This dialogue coincides with the 50th anniversary of Ethiopia’s cooperation with the EU and follows the recent signing held on April 03, 2025 of a new cooperation agreement, a testament to the shared commitment to bolster bilateral relations.

The State Minister shared insights on Ethiopia’s ongoing reforms aimed at enhancing competitiveness to attract private sector investment.

Key initiatives, including the planned privatization of Ethio-Telecom and the opening of previously restricted sectors, are designed to create a more enabling environment for business.

The discussions also encompassed necessary reforms in financial services, trade, and the establishment of new legal and institutional frameworks.

A focal point of the discussions was the EU’s “Global Gateway” initiative.

The Ethiopian delegation expressed a strong desire to better understand how this initiative can be leveraged to meet the country’s development priorities, especially through increased private sector engagement.

Both parties recognized the value of potentially organizing a workshop that would bring together representatives from the Ministry of Finance, the EU delegation, international financial institutions, and the private sector to facilitate clearer pathways for accessing opportunities associated with the Global Gateway.

Simon Mordue reiterated the EU’s commitment to transitioning its relationship with Ethiopia from traditional development assistance to a more collaborative partnership centered on investment and sustainable job creation.

He highlighted successful collaborations in flagship electrification projects, showcasing how private sector involvement can significantly contribute to Ethiopia’s economic progress.

Recognizing the complexities inherent in Ethiopia’s business landscape, which is the 2nd largest market in Africa, both parties identified challenges such as security concerns and the impacts of recent US aid reductions on vital social programs.

Semereta reaffirmed the Ethiopian government’s commitment to collaborating with the private sector to navigate the complexities inherent in Ethiopia’s business landscape obstacles effectively.

The EU delegation shared valuable insights from their engagements with European businesses operating in Ethiopia, like Heineken and No Man Coffee, which illuminated the challenges and opportunities faced by the private sector.

The potential for increasing value addition within significant sectors such as coffee was highlighted as a crucial area for future collaboration.

The meeting also addressed pressing challenges related to foreign exchange liberalization and inflation, with the EU reiterating its support for private sector development through initiatives aimed at improving the regulatory environment, customs, and taxation systems.

Additionally, discussions touched upon trade matters, specifically the implications of the EU Deforestation Regulation (EUDR) on Ethiopian coffee exports.

The EU delegation expressed its commitment to assisting Ethiopia in navigating the new regulations while preserving long-standing trade relationships.

The potential for the EUDR to serve as a branding opportunity for high-quality, sustainably produced Ethiopian coffee in international markets was also explored.

Looking ahead, both sides expressed a strong commitment to ongoing dialogue and collaboration to strengthen their partnership further.

The EU reaffirmed its belief in Ethiopia’s potential and its dedication to investing in this relationship, particularly amid a complex global landscape.