Ethiopia and the European Union (EU) have signed a €240 million (approximately 32.3 billion birr) grant agreement under the 2024 Annual Action Programme (AAP-2024) at the Ministry of Finance. This funding aims to support Ethiopia’s development across multiple sectors, reinforcing the country’s economic growth, governance, and social stability.
AAP-2024 focuses on key priorities, including strengthening the agribusiness sector to create jobs for smallholder farmers and expanding digital skills training in Technical and Vocational Education and Training (TVET) institutions. Additionally, it aims to enhance democratic institutions by fostering governance and inclusivity, particularly in post-conflict recovery efforts. The program also addresses urgent needs such as restoring basic health services for conflict-affected communities and providing psychosocial support for survivors of gender-based violence. Furthermore, it promotes integrated solutions for forced displacement, improving economic opportunities for refugees and displaced individuals, while also boosting private sector participation in key value chains for sustainable development.
Related articles
NBE Conducts Foreign Exchange Auction, Birr Trades at 131.71 per USD
Minister of Finance Ahmed Shide underscored the EU’s critical role in addressing Ethiopia’s pressing challenges, stating:
“This financing package is essential for stimulating private sector investment, modernizing our tax and customs systems, and improving services in agribusiness, health, and education. It reinforces our longstanding partnership and significantly contributes to our ongoing reforms.”
Beyond financial support, Minister Shide emphasized the importance of leveraging the EU’s Global Gateway Initiative to foster regional integration. He highlighted Ethiopia’s commitment to strengthening economic ties in the Horn of Africa Initiative (HOAI), noting that enhanced cooperation is key to unlocking the region’s vast economic potential.
EU Ambassador to Ethiopia, H.E. Sofie From-Emmesberger, reiterated the agreement’s broader significance:
“AAP-2024 is not just a financial commitment—it is a testament to our shared values and dedication to Ethiopia’s sustainable development. This partnership reflects our collective vision for a prosperous and resilient future.”
The signing ceremony, presided over by Minister Ahmed Shide and Ambassador Sofie From-Emmesberger, was attended by EU member state ambassadors and high-level dignitaries. This event marks another milestone in the 50-year strategic partnership between Ethiopia and the EU, reaffirming the EU’s vital support in Ethiopia’s development journey.
With this agreement, Ethiopia and the EU strengthen their commitment to economic progress, governance, and regional cooperation, laying the groundwork for a more sustainable and inclusive future.
