Addis Ababa, Ethiopia – December 10, 2025 — High-level delegations from the Federal Republic of Germany and the Federal Democratic Republic of Ethiopia met today in Addis Ababa to reaffirm and further strengthen their longstanding bilateral cooperation.

The German delegation was led by H.E. Reem Alabali-Radovan, Federal Minister for Economic Cooperation and Development (BMZ), while the Ethiopian side was led by H.E. Ahmed Shide, Minister of Finance. Minister Radovan’s mandate centers on reform-oriented cooperation and advancing sustainable, inclusive development partnerships.

The meeting followed the signing of the Ethio–German Three-Year Cooperation Framework Agreement (2025–2027). Ethiopia welcomed the strong political will demonstrated by Germany’s new government to continue engagement, even amidst domestic political pressures surrounding development assistance.

Germany Announces EUR 206 Million in New Commitments

Under the new cooperation framework, Germany pledged a total of EUR 206 million, comprising:

• EUR 106 million for project- and program-based Technical and Financial Cooperation; and

• EUR 100 million in direct budget support aligned with Ethiopia’s reform agenda.

The EUR 106 million will support Germany’s priority areas of cooperation in Ethiopia, including:

• Building peaceful and inclusive societies,

• Supporting the transformation of agriculture, and

• Promoting sustainable economic development.

Ethiopia Highlights Reform Momentum

Minister Ahmed Shide provided an update on Ethiopia’s ongoing macroeconomic and structural reforms, emphasizing the government’s commitment to deepening reform implementation. Priority areas highlighted include:

• Improving the functioning of the exchange market,

• Enhancing logistics and trade facilitation, and

• Strengthening government service delivery.

He also underscored the urgent investment needs of the energy sector—from generation to transmission and distribution—and the importance of private-sector participation to close the financing gap. Ethiopia is working to attract more foreign direct investment (FDI) and improve the overall business climate.

Climate Action and Global Leadership

Minister Radovan reaffirmed Germany’s strong leadership on climate action, emphasizing its continued commitment to green transformation. She highlighted Germany’s significant contributions to major global climate-finance instruments, including:

• The Loss and Damage Fund, and

• The Tropical Forests and Biodiversity (TFF) Facility, in which Germany is a major contributor.

Regional Stability and Security

Discussions also covered the evolving regional security landscape. Minister Ahmed Shide expressed concern over the situation in Sudan, stressing that a sustainable solution must be driven by a Sudanese-owned process supported by a well-coordinated international effort.

Ethiopia reaffirmed its commitment to serve as a neutral and constructive partner in efforts to restore peace in the region.

Minister Ahmed also reiterated Ethiopia’s pursuit of peacefu and legal access to the sea, emphasizing that this objective is essential for Ethiopia’s long-term security and economic future. He stressed that the government remains committed to a diplomatic solution

Growing German Private-Sector Interest

The meeting referenced the strong interest shown by German companies during the recent Ethio–German Business Forum, with particular focus on:

• Major infrastructure investments, including the planned new international airport,

• Opportunities in digitalization,

• High-tech industries, and

• Artificial intelligence (AI).

Looking Ahead

Both delegations concluded the meeting by reaffirming their commitment to deepening the longstanding diplomatic relationship and strengthening development cooperation between the two countries.