Ethiopia and Denmark Sign 238.4 million USD Bilateral Development Agreement, Reinforcing a Longstanding Partnership
June 20, 2025
ADDIS ABABA, ETHIOPIA – June 20, 2025 – The Government of Ethiopia and the Royal Danish Government today formalized a significant bilateral development agreement, the Danish–Ethiopian Bilateral Development Programme for the period 2025 to 2029. The signing ceremony, held at the Ministry of Finance, signifies a deepening partnership and enduring commitment between the two nations. This ambitious five-year program, backed by a substantial contribution of USD 238.4 million, stands out as one of Denmark's largest global development aid programs.
Semereta Sewasew, State Minister of Finance, speaking on behalf of the Government of Ethiopia, offered profound gratitude for Denmark’s unwavering support. "The programme we are launching today... comes at a very important time for Ethiopia. We are emerging from a difficult period of conflict and global economic challenges, and are now working hard to rebuild what has been lost—homes, livelihoods, and most importantly, hope".
Ambassador Sune Krogstrup of the Royal Danish Embassy to Ethiopia highlighted this, stating, "This is a testament to the strong bilateral relationship between Ethiopia and Denmark and the excellent partnership that we have enjoyed throughout the years".
"Our two nations have enjoyed a century of friendship with diplomatic ties dating back to 1967," State Minister Sewasew remarked, emphasizing that beyond formalities, "the relationship has been about partnership—rooted in trust, mutual respect, and a shared commitment to building a better future for our people".
The State Minister underscored the critical timing of the program. She further elaborated on the direct impact, noting, "This partnership will support some of the most vulnerable Ethiopian families who are striving to recover their livelihoods, young people who are looking to work and communities that are adapting with changes in climate". This, she added, "directly aligns with our national plan and reflects the people-centered vision we have for development in Ethiopia".
Ambassador Krogstrup expressed his delight in signing the agreement, which he confirmed was "developed in close partnership with the Ethiopian government". He noted, "Ethiopia and Denmark share many priorities, and most of them are reflected in this program". Key areas of support will include "water, electricity, agriculture, social cohesion and social safety net which is very important in these times of change".
State Minister Semereta Sewasew particularly welcomed the strong emphasis on green growth, stating it "deeply resonates with our ambitions under the Green Legacy Initiative". She explained that "whether through climate-smart agriculture, forestry integration [or] access to clean energy, your support strengthens our long-term sustainability and sovereignty ambitions". Denmark’s focus on "peace, human rights, [and] social cohesion" also "speaks to the heart of our nation," especially as "Ethiopia is in the midst of a national dialogue process—bringing together diverse voices and building bridges".
The Ambassador conveyed his confidence that this program will "pave the way for an even deeper cooperation between Ethiopia and Denmark" and that the partnership "will continue to grow over the next five years". He concluded by affirming, "Ethiopia can count on the support of the government of Denmark, of the people of Denmark".
Reaffirming Ethiopia's commitment, State Minister Sewasew stated, "We are fully committed to the success of this program. We will work closely with you to ensure that these programs translate into real and lasting improvement in the lives of our people". She concluded by extending gratitude, saying, "Thank you for believing in Ethiopia".