The gradual normalisation of development cooperation with Ethiopia, a strategic partner of the EU, took a step forward on Tuesday 3 October in Addis Ababa, following talks on Ethiopian economic development between the European Commissioner for International Partnerships, Jutta Urpilainen, and the Ethiopian Finance Minister, Ahmed Shide.
At the same time, they announced the signing of a Multiannual Indicative Programme (MIP) worth €650 million for Ethiopia, financed by the EU budget for the period 2024 - 2027.
This programme will have three priorities: 1) a Green Deal covering climate change, biodiversity, renewable energy and agriculture/agro-industry; 2) human development; 3) peace-building, governance and democratic development, Ms Urpilainen told the Ethiopian press.
“Of course, we support the implementation of the Pretoria Peace Agreement through national dialogue, accountability and transitional justice”, said Ms Urpilainen, stressing that the EU had never stopped supporting the Ethiopian people, even if direct budgetary support had to be suspended.
The MIP will not yet allow the resumption of direct budget support to the government. Ms Urpilainen specified that the terms and conditions would be subject to very strict conditions. “We must first have an IMF programme”, which the Ethiopian government is currently negotiating as part of its homegrown economic reform agenda.
"The new MIP underlines the strategic importance of our relationship and the standardisation of the development partnership with the EU. This is an important commitment by the EU to Ethiopia’s economic development efforts”, said Ahmed Shide.
Discussions also focused on the EU’s Global Gateway investment programme and how it will enable EU companies to invest more in Ethiopia. “This is very important at a time when Ethiopia is making progress in implementing its economic reforms. The fundamental pillar is economic growth driven by a leveraging private sector growth”, insisted the Ethiopian Minister.
He also said: “The EU is a major source of investment for Ethiopia, and a major trading partner. So developing this leveraging capacity completes our partnership for development”.
Looking beyond the bilateral relationship, Ms Urpilainen and Mr Shide discussed ways of strengthening regional economic integration in the Horn of Africa.
Mr Shide assured that “Ethiopia will continue to demonstrate its leadership in regional economic integration and peace” and stressed that “the Horn of Africa initiative is working".
On the same day, Jutta Urpilainen was due to take part in a ministerial meeting on the subject, meeting the Prime Minister, Abiy Ahmed, and the Chair of the African Union Commission, Moussa Faki, to discuss the implementation of the Global Gateway initiatives and regional priorities in preparation for the EU/African Union ministerial meeting on 20 November. (Original version in French by Aminata Niang)