Overview of the 90 Million Euro Action Plan
In a bid to accelerate Ethiopia’s ongoing economic reforms and support its post-conflict reconstruction, the Ministry of Finance and the European Union formalized a 90 million euro funding agreement for the Annual Action Plan (AAP) 2025. The signing, held in Addis Ababa on October 28, 2025, marks a renewed phase of cooperation under the Team Europe approach and the Global Gateway framework, underscoring a shared commitment to sustainable development and inclusive growth.
From Symbolic to Strategic: The Significance of the Financing
State Minister Semereta Sewasew emphasized the broader strategic value of the financing agreement, noting its roots in a long-standing partnership between Ethiopia and the EU. She described the funds as both symbolic and practical, designed to accelerate reforms and unlock new investment opportunities. “By leveraging the Multiannual Indicative Programme (MIP) and the Global Gateway Initiative, and working closely under the Team Europe approach, we can unlock new investment opportunities and achieve mutually beneficial outcomes,” she said.
The EU Ambassador to Ethiopia, Sofie From-Emmesberger, reaffirmed that the AAP-2025 aligns with Ethiopia’s Home-Grown Economic Reform Agenda while supporting broader Global Gateway objectives. The emphasis is on practical, results-oriented programs that complement national priorities and contribute to climate resilience and green growth.
Alignment with Ethiopia’s National Priorities
The AAP-2025 is designed to support the Government of Ethiopia’s development priorities, integrating with key national initiatives. Under the Team Europe framework, the plan targets several pivotal areas, including strengthening land governance, promoting nature conservation, empowering women, and facilitating migrant integration. Each element plays a vital role in building a more resilient and inclusive economy.
Moreover, the initiative aligns with the Green Legacy Initiative, signaling a commitment to biodiversity conservation and the creation of a climate-resilient green economy. The emphasis on environmental sustainability complements social inclusion and economic reform goals, aiming to ensure sustainable development outcomes across sectors.
Public-Private Dialogue: A Path to a Better Investment Climate
Along with the financing agreement, a Public-Private Dialogue (PPD) brought European businesses operating in Ethiopia into the spotlight. The dialogue sought to identify and address challenges in the business environment—including customs and taxation, investment protection, legal predictability, and land leases—and to improve coordination among government agencies.
Ethiopian Investment Commissioner Zeleke Temesgen highlighted the value of the PPD in mapping bottlenecks, enhancing the investment climate, and charting new avenues for cooperation. He stressed that establishing a consistent framework for ongoing dialogue between the Ethiopian government and EU businesses is essential for tracking progress and sustaining engagement over time.
What This Means for Growth and Development
Experts say the AAP-2025, backed by the EU’s Team Europe approach, could unlock private sector investment and catalyze reforms that are critical during this phase of recovery and transformation. Through targeted support for governance reforms, land administration, environmental stewardship, and women’s empowerment, the program aims to deliver tangible improvements for 2025 and beyond.
Looking Ahead: Monitoring, Accountability, and Impact
As the agreement unfolds, officials intend to monitor progress against agreed milestones and ensure robust accountability mechanisms. The ongoing dialogue between government bodies and EU-based firms will provide a channel to adapt programs, address emerging bottlenecks, and sustain momentum for reform and investment in Ethiopia’s economy.
