April 7, 2025
Borkena
Toronto – Despite allegations unprecedented of human rights violations particularly in the Amhara region of Ethiopia where the Federal government has been undertaking a full fledged war under the stated objective of “disarming fano forces,” the Abiy Ahmed led Ethiopian government continues to get financial support from its western backers.
The latest grant came from the European Union. Last Friday, the Ministry of Finance announced that it has sealed a $240 million Euro grant agreement from the EU.
“Ethiopia and the European Union (EU) signed 240 million Euro (approximately 32.3 billion birr) grant agreement under the 2024 Annual Action Programme (AAP-2024) at the Ministry of Finance,” the Ministry announced. The European Union called it “a pivotal moment in the EU-Ethiopia partnership.”
Ethiopia’s Minister for Finance, Ahmed Shied, and Ambassador of the European Union Sofie From-Emmesberger, signed the agreement in the presence of European Union Member States’ Ambassadors in Addis Ababa.
According to the EU, the funding, which amounts to 32.3 Billion Birr, is intended “to enhance Ethiopia’s development across several critical areas.”
Ambassador Sofie From-Emmesberger remarked after the signing ceremony. The Ministry of Finance quoted her as saying “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”
Under the agreement, the European Union is providing not only financial support but also “technical support” in selected development areas.
An update published by the EU highlighted the following six areas as “critical areas.”
- Strengthening Democratic Institutions, Transitional Justice, Gender Equality and Social Cohesion in Ethiopia
- Post-Conflict Restoration of Basic Health Services, Medical and Psycho-Social Support to Gender-Based Violence Survivors and Conflict-Affected Communities in Ethiopia
- Support to Sustainable and Integrated Responses to Forced Displacement and Labour Migration in Ethiopia
- Green Business Development for Sustainable Agro-Food Systems in Ethiopia:
- Support to Digital Transformation in Ethiopia through Digital Skills Development in TVET
- Enabling Private Sector in Key Value Chains in Ethiopia
However Ahmed Shiede, Ethiopia’s Minister for Finance, seems to emphasize the importance of the funding in “stimulating the Private sector.” He reportedly said “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education. It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”
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