The European Union has resumed direct budgetary support to Ethiopia, which was suspended since 2020. This decision includes the immediate release of more than 140 million euros for the national budget. It signals confidence in Ethiopia's reform efforts after the northern conflict.
At the EU-Ethiopia Business Forum underway in Addis Ababa, European Commissioner for International Partnerships Jozef Síkela was received by Foreign Minister Gedion Timothewos (Dr.) at his office.
The minister stated that ties between Ethiopia and the EU are strengthening, describing the forum as successful. Commissioner Síkela called the budgetary resumption a "clear sign of confidence" in the government's stabilization and modernization efforts following the northern Ethiopia conflict.
This support forms part of a 240 million euro Annual Action Plan (AAP) targeting governance, health, and economic growth. The RISE program has reached 4 million people through power grid modernization and 2,500 kilometers of fiber optic cables. A 150 million euro digital economy package was also signed, with plans to double it.
The European Investment Bank (EIB) approved a 130 million euro credit facility for smallholder farmers and rural enterprises, focusing on women-led businesses and the agri-food sector. The forum emphasizes positioning Ethiopia for European investment under the Global Gateway strategy.
