EU Resumes Budgetary Support for Ethiopia

Addis Ababa, April 20, 2026 (ENA) — The European Union (EU) has officially announced the resumption of budgetary support to Ethiopia, reflecting renewed confidence in the nation's reform agenda and paving the way for increased private sector investment.

This significant development was highlighted during the opening of the EU–Ethiopia Business Forum 2026, themed “Unlocking the Global Gateway Potential,” held in the capital.

During the event, Jozef Síkela, the EU Commissioner for International Partnerships, unveiled a new budget support package exceeding 140 million euros.

This funding is strategically aimed at vital sectors including energy, healthcare, connectivity, and business environment reforms, which are deemed essential for fostering sustainable economic growth and attracting private investment.

In addition to the budgetary support, the EU is enhancing its investments through the Global Gateway initiative.

A notable component of this initiative is a 150 million Euro Digital Economy Package, designed to bolster digital infrastructure, enhance skill development, and strengthen governance systems, with further scaling anticipated in the future.

The energy sector will also benefit from the 269 million Euro RISE program, which aims to modernize electricity infrastructure, rehabilitate the Ashegoda Wind Farm, and deploy 2,500 kilometers of fiber optic cable.

These efforts are expected to significantly improve energy access and digital connectivity for both businesses and households.

Moreover, the European Investment Bank has announced additional financing operations focused on agriculture and food systems, prioritizing support for smallholder farmers and women-led enterprises. This initiative aims to promote inclusive and sustainable growth across Ethiopia.

Ethiopia is currently undergoing transformative reforms aimed at enhancing economic stability and growth.

The EU's commitment is anticipated to play a crucial role in advancing the country's economic landscape, particularly in sectors critical for its development.