Council of Ministers Approves Agreements, Refers Proclamations to House of People's Representatives

Addis Ababa, May 1, 2025 (ENA)—The Council of Ministers has deliberated on various issues and passed decisions in its 44th regular session  today.

The council first discussed two financial agreements signed with the Government of Italy and the International Development Association.

The 11,500,000 Euros obtained from the Government of Italy will be used as budgetary support for implementing Environmental and Green Economy Development. It will be paid in 30 years, with 16 years grace period.

The 38,100,000 SDR received from the International Development Association will be used to implement the Teaching and Learning Empowerment Education Sector Transformation Program. With a service fee of 0.75 percent, it will be paid over 38 years, including a 6-year grace period.

The council unanimously decided to refer the two draft proclamations to the House of People's Representatives, affirming that the loans are interest-free and in line with the country's loan management policy.

Next, the council discussed a draft proclamation on the ratification of the establishment of Africa Finance Corporation.

The corporation is established to provide financial and technical assistance for private developers and government entities that focus on building infrastructure, natural resource and industrial development.

 

Realizing the huge importance of joining the corporation to reduce poverty by accelerating sustainable economic growth, the council unanimously decided to forward the draft proclamation to the House of People's Representatives.

It also discussed the draft regulation for the reduction of tariff rates on goods under the African Continental Free Trade Area Agreement (AfCFTA) as the agreement is crucial to expand trade among member countries, strengthen market ties, empower the value chain, and realize economic transformation.

The council further discussed about the need to determine customs tariff rate on goods imported from member countries so that transactions of goods could be facilitated without being hindered by tariffs.

Following the discussion, the council unanimously decided that the regulation be implemented within one month from the date of its publication on the Federal Negarit Gazette.

The council then discussed two draft regulations to determine fees for services provided by the Ministry of Transport and Logistics and the Civil Society Organizations Authority of the Federal Democratic Republic of Ethiopia.

Following extensive discussion on the draft regulations, the council unanimously decided for the regulations to come into effect starting from the date of their publication on the Negarit Gazette.

The other agenda discussed by the council was a draft proclamation to regulate the ownership of immovable property by foreign nationals.

The establishment of a legal framework for the ownership of foreign nationals without compromising the rights of citizens to obtain and use land is crucial to encourage the flow of foreign capital into the country, further stimulating housing development and accessibility, maintaining a balance between housing demand and supply, and creating jobs for citizens.

Following extensive discussion on the draft proclamation, the council has unanimously decided to refer it to the House of People's Representatives.

Finally, the council deliberated on a draft proclamation tabled to ratify the air transport agreement signed with the Government of Austria.

The approval of the agreement, alongside strengthening bilateral relations between the two countries, would create additional market opportunities for Ethiopian Airlines; and it is instrumental in encouraging the country's trade and investment, supporting export trade, expanding tourism, creating employment opportunities. It also has huge importance for foreign exchange earnings.

After discussing the draft proclamation, the council unanimously referred it to the House of People's Representatives.