Addis Ababa, April 3, 2025 (FMC) – Ethiopia and the European Union (EU) signed 240 million Euro (approximately 32.3 billion birr) grant agreement under the 2024 Annual Action Programme (AAP-2024) at Ministry of Finance.
The AAP-2024 is aimed at addressing essential areas for Ethiopia’s development, including agribusiness initiatives to enhance the agribusiness sector and create jobs for smallholder farmers. It also emphasizes digital skills development within Technical and Vocational Education and Training (TVET) to foster economic growth.
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.
Minister Mr. Ahmed Shide highlighted the pivotal role of the EU’s support in addressing Ethiopia’s pressing challenges, stating, “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education. It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”
In addition to the funding announcement, Minister Shide emphasized the significance of engaging in dialogue about leveraging the EU’s Global Gateway Initiative to advance 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).”
Ambassador Sofie From-Emmesberger commented on the significance of the agreement, stating, “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”
This momentous occasion marks a significant advancement in the 50-year strategic partnership and underscores the EU’s vital support across various developmental sectors in Ethiopia Emphasizing Regional Integration through Global Gateway Initiative.
The signing ceremony was presided over by Mr. Ahmed, Ethiopia’s Minister of Finance, and Sofie From-Emmesberger, the EU Ambassador to Ethiopia. In attendance were ambassadors from EU member states and various dignitaries, all witnessing the commitment toward enhanced cooperation in key development areas.