ADDIS ABABA, ETHIOPIA – October 28, 2025 – The Ministry of Finance (MoF) and the European Union (EU) have signed a €90 million financing agreement for the Annual Action Plan (AAP)-2025. This agreement acknowledges Ethiopia’s unique context, specifically the ongoing deep economic reforms and its post-conflict recovery and reconstruction needs.

The agreement was formalized today in Addis Ababa and signed by H.E. Semereta Sewasew, State Minister at the Ministry of Finance, and H.E. Sofie From-Emmesberger, EU Ambassador to Ethiopia. This €90 million initiative marks a renewed phase of cooperation between the two parties.

H.E. Semereta Sewasew highlighted the profound significance of the financing agreement and its role in the bilateral relationship highlighting that “the initiative carries both symbolic and strategic value, representing another milestone in the long-standing partnership between Ethiopia and the European Union, rooted in shared history and sustained by mutual cooperation”.

She further noted that the EU and its Member States, as one of Ethiopia’s major and long-standing development partners, offer vast potential to further expand this relationship. By leveraging the Multiannual Indicative Programme (MIP) and the Global Gateway Initiative, and working closely under the Team Europe approach, she stated that: “we can unlock new investment opportunities and achieve mutually beneficial outcomes”.

The programs under AAP-2025 are designed to complement key national initiatives, aligning well with the Government of Ethiopia’s priorities. The plan is implemented through the "Team Europe" approach.

H.E. Sofie From-Emmesberger stated that “Through the “Team Europe” approach, the Annual Action Plan (AAP) aligns with Ethiopia’s Home-Grown Economic Reform Agenda while contributing to the broader Global Gateway Strategy. It emphasises pivotal initiatives such as, strengthening land governance, enhancing nature conservation, empowering women, and supporting migrant integration—each vital to ensuring sustainable development”.

The AAP-2025 aligns with Ethiopia’s Green Legacy Initiative, which promotes biodiversity conservation and the building of a climate resilient green economy.

Alongside the signing of the financing agreement, a Public-Private Dialogue (PPD) took place with European businesses operating in Ethiopia. The objectives of the dialogue included addressing challenges faced in the business environment, such as customs and taxation matters, investment protection, legal predictability, land leases, and coordination among government agencies.

Ethiopian Investment Commissioner, H. E. Dr. Zeleke Temesgen, noted that the PPD helped to identify and address bottlenecks faced by European businesses, enhance the investment climate and chart new avenues of cooperation. He added that establishing a consistent framework for dialogue between the Ethiopian government and EU businesses is deemed essential to track the progress of agreed actions and ensure ongoing engagement.

The EU Delegation to Ethiopia expressed gratitude for the collaborative efforts of Ethiopian ministries, agencies, implementing partners, and dedicated EU Delegation and Member State teams in preparing the Annual Action Plan. Together, the EU and Ethiopia are translating partnerships into impactful actions for peace, prosperity, and the wellbeing of their people.