EU, Ethiopia Sign 240 Million Euro Program that Promotes Sustainable Development

Addis Ababa, April 3, 2025 (ENA) --- European Union (EU) and Ethiopia have signed the Annual Action Programme (AAP) 2024, allocating 240 million Euros or 32.3 billion Birr. 

Finance Minister Ahmed Shide and EU Ambassador Sofie From-Emmesberger inked the programme today.

Under this agreement, the EU will provide financial and technical support, for a total amount of 240 million Euros to enhance Ethiopia's development across several critical areas.

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.

 

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 am grateful for the EU’s comprehensive support under AAP 2024, which aims to stimulate private sector investment in agribusiness, modernize tax and custom systems and develop emerging capital markets. This package will also enhance digital skills in TVET, restore essential health services, strengthening democratic institutions and creating lasting solutions for IDPs,” the minister said.    

Minister Ahmed Shide highlighted the pivotal role of the EU's support in addressing Ethiopia’s pressing challenges.

He said 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).

EU Ambassador Sofie From-Emmesberger stated that the signing of this program is a testament to the half-century partnership between Ethiopia and EU.

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 working hard on the agriculture sector, specially in the coffee sub-sector; and the EU is here to support this, the EU Ambassador pointed out.

This agreement reaffirms mutual commitment to sustainable development, peace, and prosperity in Ethiopia.

The signing ceremony of the AAP 2024 was attended by ambassadors of the EU member states.