Ethiopia, AfDB Strengthen Strategic Alliance on Various Sectors

ADDIS ABABA, March 4, 2026 - Ethiopia and the African Development Bank (AfDB) Deepen Strategic Partnership Across various agenda including infrastructure, reform, and climate priorities.

They have reaffirmed their expanding development alliance, pledging deeper coordination across infrastructure, macroeconomic reform, energy, and climate priorities as the country advances its structural transformation drive.

State Minister of Finance Semereta Sewasew received a high-level delegation from the African Development Bank led by newly appointed Executive Director Cafriene Ronald Justin to review the Bank’s broad engagement in Ethiopia and align on forward looking strategic priorities, according to the Ministry of Finance.

According to a post on the social media of the ministry, discussions highlighted that the AfDB remains one of Ethiopia’s leading multilateral development partners, with a diversified portfolio covering infrastructure, energy, agriculture, private sector development, climate action and economic reform support.

Semereta stressed that Ethiopia’s ongoing macroeconomic and structural reforms are building a firmer foundation for sustainable and inclusive growth.  

​​​​​​She noted that the Bank’s budget support operations have played a critical role in strengthening fiscal stability, advancing policy reforms and sustaining reform momentum during a delicate economic transition.

“Beyond financing, the Bank’s engagement demonstrates strong confidence in Ethiopia’s reform trajectory and long-term development vision,” she said.

Infrastructure development remains central to the partnership. Among the flagship initiatives is the Bishoftu Airport Mega Project, envisioned as a transformative continental aviation hub designed to expand logistics capacity and enhance regional connectivity.

“The Bishoftu Airport project is not merely an Ethiopian initiative; it is a flagship African project,” Semereta stated, underscoring its importance for regional integration, trade facilitation and Africa’s global competitiveness.

In addition to aviation, the AfDB continues to support strategic transport corridors, urban infrastructure, and water and sanitation systems that serve as pillars of economic transformation.

Energy represents the largest share of the Bank’s commitments in Ethiopia, reflecting national priorities to expand power generation, strengthen transmission networks and accelerate renewable energy development.  

The support aligns with Ethiopia’s ambition to position itself as a regional clean energy hub while advancing green growth and climate resilience.

The talks also covered collaboration in climate finance and preparations related to COP32, highlighting Ethiopia’s role in promoting low carbon infrastructure and sustainable development.

Both sides emphasized the importance of scaling up private sector engagement as Ethiopia moves toward a more competitive, private sector led growth model.  

The Bank’s backing of financial sector reforms, privatization initiatives and small and medium enterprise development is helping mobilize investment and unlock new economic opportunities.

Agricultural transformation featured prominently in the discussions, with particular focus on the poultry value chain.  

The sector offers strong potential for job creation, food security, import substitution and rural income growth while supporting agro-industrial expansion.

Semereta welcomed the successful replenishment of the African Development Fund, the concessional window of the AfDB Group, noting that it enhances the Bank’s ability to deliver transformative investments in low-income countries including Ethiopia.  

She said the replenishment reflects sustained global confidence in the Bank’s development mandate and ensures predictable financing for priority sectors.

Executive Director Cafriene Ronald Justin commended Ethiopia’s steady reform progress and expressed satisfaction with the performance and impact of the Bank’s portfolio in the country.  

He reaffirmed the AfDB’s commitment to supporting Ethiopia’s sustainable structural transformation.

The meeting concluded with both parties reiterating their shared resolve to accelerate implementation, strengthen strategic coordination and ensure that the AfDB Ethiopia partnership continues to drive inclusive growth, regional integration and long-term prosperity.