Ethiopia and the European Union (EU) signed a cooperation agreement worth 650 million euros to normalize relations between the two.
On October 3, 2023, at a launch ceremony with Ethiopia’s Minister for Finance Ahmed Shide, European Commissioner for International Partnerships Jutta Urpilainen launched the EU’s Multiannual Indicative Program (MIP) with Ethiopia for the period 2024–2027. Under the Global Gateway investment strategy, the EU’s positive offer to build trusted and sustainable connections with partner countries, the cooperation priorities will focus on three priority areas: the Green Deal, Human Development and Governance and Peacebuilding.
Commissioner Urpilainen said: “As a key regional partner, the EU attaches great importance to its cooperation with Ethiopia. Today, Ethiopia is engaged in a peace process, transitional justice, and reform. The European Union has consistently supported these tracks and my presence today in Addis demonstrates the importance of these efforts. Together, the EU and Ethiopia aim to gradually normalize relations through structured political dialogue and rebuild a mutual reinforcing partnership. Under the Global Gateway investment strategy, this Multiannual Indicative Program for 2024-2027 reaffirms the EU’s readiness to mobilize resources for Ethiopia’s stability, post-conflict reconstruction and macro-economic recovery.”
The newly announced EU’s cooperation priorities for Ethiopia under this period contribute €650 million to advancing Ethiopia’s development in a transformative, inclusive, and forward-looking manner. The humanitarian-development-peace nexus approach is an integral part of the MIP.
To implement the MIP effectively, an active political and policy dialogue between the EU and the Government of Ethiopia is required. This will provide a framework for genuine exchanges on shared political, policy and multilateral agendas. Depending on continued progress, the EU’s partnership will broaden its support to national policies to stabilise and improve the overall economic, financial and trade perspectives in Ethiopia. Based on a sustained implementation of the Cessation of Hostilities Agreement (CoHA), the EU will progressively return to a full and strengthened Strategic Engagement with Ethiopia. The EU looks forward to reinvigorating political dialogue at all appropriate levels with the Government of Ethiopia and relaunching sectoral dialogues.
The EU’s support is structured around three areas:
Green Deal (€260 million): this priority will support policies and structural reforms to trigger innovative financing and private sector investments to advance Ethiopia’s green transition.
Human Development (€228 million): this sector will build on and expand the aid already provided for essential needs and services in response to the conflict situation 2021-2022, and focus on the reconstruction and delivery of key basic services to the population.
Governance and Peacebuilding (€156 million): this area will cover three sectors, namely (1) Economic Governance, which focuses on the transition to a private sector-led and investment-friendly economy, (2) Democratic Governance promoting democracy, the rule of law and human rights, and (3) Peacebuilding which focuses on inclusive actions that promote social cohesion, trust, and a culture of mutual respect and dialogue.
Source: European Commission