The European Union (EU) has resumed budgetary support to Ethiopia after a six-year suspension due to the war in northern Ethiopia.
The war, which lasted for two years, ended with the signing of the Cessation of Hostilities Agreement (CoHA) in Pretoria between the Tigray People’s Liberation Front (TPLF) and the federal government.
At a trilateral Ethiopia–EU–AU business forum held in Addis Ababa, European Commissioner for International Partnerships Jozef Síkela announced the resumption of support in priority areas such as energy, connectivity, agriculture, and healthcare.
Síkela said, “The most significant announcement of the day is the resumption of EU budget support to Ethiopia. As you know, the support was suspended in 2020 following the conflict in northern Ethiopia.” According to him, the resumption signals the EU’s confidence in the measures the Ethiopian government is taking and its commitment to a long-term partnership. The Commissioner stated that €150 million has already been committed to joint Ethiopia–EU digital economy projects focusing on digital infrastructure, skills, and governance.
The European Investment Bank has also signed two lending agreements: one with Zemen Bank worth €20 million to provide affordable credit for agri-food businesses and smallholder farmers, and another worth €110 million for rural finance to support rural households, women, and small enterprises.
The resumption of support will unlock an additional €140 million package for shared priority areas, Síkela added.
Síkela also noted that the EU has been the largest destination for Ethiopian exports, with coffee and flowers as the dominant commodities.
Without providing exact figures, he said trade between Ethiopia and the EU reached a record level last year, and the EU aims to sustain this momentum.
