Ethiopia: EU Moves Toward Normalizing Relations With Ethiopia, Pledges $680 Million

European Commissioner for International Partnerships Jutta Urpilainen with Ethiopia’s Minister for Finance Ahmed Shide,October 2023.

Addis Ababa, Ethiopia — A European Union Commissioner has met with Ethiopian government officials and pledged millions of dollars in a step toward normalizing relations between the two.

European Union Commissioner Jutta Urpilainen met with Ethiopian government officials during a visit Tuesday that included an announcement of $680 million in support from the EU.

Urpilainen announced the support following a meeting with Ethiopian Finance Minister Ahmed Shide.

The commissioner, who is also taking part in the Horn of Africa Initiative ministerial meeting in Addis Ababa, said the EU is promoting economic integration in the Horn of Africa.

"Ethiopia is a strategic partner for the European Union, and today we are able to take important steps forward in the afternoon, when we are signing our multiannual indicative program for our bilateral cooperation," said Urpilainen.

The Multi-annual Indicative Program (MIP) is intended to focus on three priority issues: a green agenda, human development and peace building.

The commissioner also met with Moussa Faki Mahamat, the chairperson of the African Union Commission, and Ethiopian Prime Minister Abiy Ahmed.

The EU suspended all budgetary support to Ethiopia three years ago, following the start of open conflict in the country's Tigray region.

Asked about the relationship between the EU and Ethiopia, the commissioner said money was part of a gradual process.

"We have a gradual approach, and now I think one step has been taken forward after this day, because we are able to sign this MIP," said Urpilainen.

This is a very important commitment from the EU to Ethiopia's development, to Ethiopia's economic reform, Ahmed said during a news conference held in Addis Ababa.

"EU is a major source of investment for Ethiopia, is a major trading partner. So, leveraging on this capacity also complements our development partnerships," said Ahmed. "We have also discussed how to enhance our regional economic integration."

The EU announced the suspension of budgetary support to Ethiopia in December 2020, two months after the start of the war in Tigray.

The African Union brokered a peace deal after two years of conflict.

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