House Approves Proclamations, Agreements

Addis Ababa, May 13, 2025 (ENA)— The House of People's Representatives (HPR) has endorsed two draft loan agreements, an air transport services agreement, and an agreement for the establishment of the African Finance Corporation today.

The draft loan agreements for 11.5 million Euros obtained from the Italian government for environmental and green economy development and 50 million USD obtained from the International Development Association for the education sector transformation program aimed at enhancing learning and teaching were approved unanimously.

Likewise, the air transport services agreement signed with the Governments Austria was approved unanimously.

The draft proclamation for the ratification of the African Finance Corporation establishment was approved by a majority vote, with three abstentions.

 

Deputy Government Whip Meseret Haile presented the draft loan agreements to the House in detail.

She stated that the 11.5-million-Euro loan agreement obtained from the Italian government is aimed at supporting Ethiopia's implementation of the ongoing green economy development. 

The loan will mainly be used for works in agriculture, forestry, health, transport, energy, industry, water, and urban development, the deputy government whip elaborated.

The agreement for the implementation of the education sector transformation program to enhance learning and teaching will help in realizing access to quality education. 

It has in particular clear significance for the reform taking place in the sector for teacher development, educational inputs, and the reform starting from pre-primary level.

The African Finance Corporation establishment agreement will have a significant contribution to the multifaceted economic activities Ethiopia is undertaking, Meseret said.

 

Ethiopia's membership in the African Finance Corporation will help in obtaining finance for the private sector, industries, and infrastructure building.

According to her, the membership will create an enabling environment for supporting efforts towards the continental free trade area and connecting Africa through infrastructure.

The air transport services agreement signed between Ethiopia and Austria will help to expand destinations, strengthen relations between the two countries, and create opportunities for trade and jobs.

On his part, Finance State Minister Eyob Tekalegn told the HPR members that the agreements have taken into account the country's economic growth.

 

The government would strengthen its support and monitoring mechanisms to ensure that the agreements are utilized for the intended purposes, he added.

Furthermore, the state minster explained that the proposed proclamation for Ethiopia to become a member of the African Finance Corporation would help to increase the country's financial capacity and expand options.

In particular, it plays a huge role in easing the financial problems observed in mining, industry, and similar investments.