Overview of the 90 Million Euro Joint Action Plan 2025
In a landmark move that underscores the depth of EU-Ethiopia cooperation, the Ministry of Finance of Ethiopia and the European Union signed a 90 million euro financing agreement for the Annual Action Plan (AAP) 2025. The agreement, formalized in Addis Ababa, reflects the two sides’ commitment to support Ethiopia’s ongoing economic reforms, post-conflict recovery, and reconstruction needs. State Minister at the Ministry of Finance, Semereta Sewasew, and the EU Ambassador to Ethiopia, Sofie From-Emmesberger, signed the agreement, signaling a renewed phase of collaboration through the Team Europe framework.
The AAP-2025 is designed to complement Ethiopia’s Home-Grown Economic Reform Agenda and aligns with the government’s broader development priorities. By leveraging the Multiannual Indicative Programme (MIP) and the Global Gateway Initiative, the plan aims to unlock new investment opportunities and foster mutually beneficial outcomes for both partners.
Strategic Goals and How They Align with Ethiopia’s Priorities
Semereta Sewasew highlighted the strategic and symbolic value of the financing, noting that the partnership is rooted in shared history and sustained by mutual cooperation. She emphasized that the EU and its member states offer significant potential to expand collaboration beyond this immediate agreement.
Through the Team Europe approach, the AAP-2025 seeks to advance critical sectors and reform agenda, including land governance, nature conservation, women’s empowerment, and migrant integration. These pillars are not isolated initiatives; they are interwoven with Ethiopia’s Green Legacy Initiative, which prioritizes biodiversity conservation and the development of a climate-resilient green economy. The fusion of these efforts reinforces Ethiopia’s commitment to sustainable development while integrating resilience into the country’s growth strategy.
Public-Private Dialogue: Strengthening the Investment Climate
Alongside the signing, a Public-Private Dialogue (PPD) was held with European businesses operating in Ethiopia. The dialogue aims to address practical challenges in the business environment—ranging from customs and taxation to investment protection, legal predictability, and land leases. The Ethiopian Investment Commissioner, Zeleke Temesgen, stated that the PPD helped identify bottlenecks faced by European investors, highlighting the investment climate’s bottlenecks and the need for coordinated action across government agencies.
Temesgen stressed that establishing a consistent framework for ongoing dialogue between the Ethiopian government and EU businesses is essential to monitor progress on agreed actions and ensure continued engagement. The PPD signals a pragmatic approach: diagnose friction points, implement reforms, and maintain open lines of communication to attract sustainable investment and reinforce the green growth agenda.
What This Means for Ethiopia and the EU
The 90 million euro package reinforces Ethiopia’s reform trajectory during a period of post-conflict recovery and reconstruction. By aligning with the Global Gateway Strategy and the Home-Grown Economic Reform Agenda, the AAP-2025 supports critical reforms while fostering inclusive growth and resilience. For the EU, the agreement demonstrates a concrete commitment to a long-standing partnership that combines financial support with targeted policy dialogue and private-sector engagement.
Looking Ahead
As the Team Europe approach matures, the partnership is expected to expand opportunities for investment, transfer of know-how, and sustainable development across priority sectors. By integrating land governance, environmental stewardship, gender inclusion, and migrant integration into the action plan, both sides are positioning themselves to achieve durable, climate-smart growth in Ethiopia.
