• EUR 106 million allocated for project- and program-based technical and financial cooperation.
• EUR 100 million in direct budget support aligned with Ethiopia’s reform agenda.
• Focus areas include economic reforms, climate resilience, regional stability, and support for IDPs.

Ethiopia and Germany have officially adopted the Ethio–German Three-Year Cooperation Framework (2025–2027), with Germany committing a total of EUR 206 million to support Ethiopia’s economic reforms, development programs, and humanitarian priorities, according to the Ethiopian News Agency (ENA).

The German delegation was led by H.E. Reem Alabali-Radovan, Federal Minister for Economic Cooperation and Development (BMZ), while the Ethiopian side was headed by H.E. Ahmed Shide, Minister of Finance. ENA reports that EUR 106 million will fund project- and program-based technical and financial cooperation in areas including peacebuilding, agricultural transformation, and sustainable economic development, while EUR 100 million will be provided as direct budget support aligned with Ethiopia’s reform agenda.

During the meeting, Minister Ahmed Shide updated the German delegation on Ethiopia’s ongoing reforms, highlighting measures to improve the foreign-exchange market, enhance logistics and trade facilitation, and strengthen government service delivery. He also noted the need for private-sector participation to address investment gaps in the energy sector.

On climate action, Minister Radovan reaffirmed Germany’s support for Ethiopia’s sustainable development, noting contributions to international climate-finance instruments, including the Loss and Damage Fund and the Tropical Forests and Biodiversity (TFF) Facility. According to Ferdinand von Weyhe, Chargé d’Affaires of the German Embassy in Addis Ababa, Ethiopia’s selection to host COP32 reflects recognition of the country’s progress in climate resilience, particularly through initiatives such as the Green Legacy Initiative.

The meeting also addressed regional stability, with Minister Ahmed Shide expressing concern over the situation in Sudan and reiterating Ethiopia’s commitment to act as a neutral partner in restoring peace. He emphasized the country’s pursuit of peaceful and legal access to the sea as essential to long-term security and economic growth.

According to Ethiopian Finance Ministry, the discussions included the strong interest of German companies in Ethiopia, particularly in infrastructure, digitalization, high-tech industries, and artificial intelligence, reflecting ongoing efforts to improve the business climate and attract foreign investment.

The delegations concluded by reaffirming their commitment to deepening diplomatic relations and development cooperation, focusing on reforms, climate action, regional stability, and the support of internally displaced persons.

Ethiopia’s adoption of the 2025–2027 Ethio–German Cooperation Framework comes as the country continues to record robust economic growth, with projections of around 7.2 % in 2025, supported by expanding exports and ongoing reforms, according to Deloitte. The EUR 206 million pledge by Germany complements other international support, including a EUR 240 million EU development programme and a US$1 billion World Bank policy operation.

The partnership also targets humanitarian and climate priorities. Ethiopia currently hosts over 4.2 million internally displaced persons and more than 823,000 refugees, while international partners continue to provide critical support. Climate resilience efforts, such as the Green Legacy Initiative and the 5,000 MW Grand Ethiopian Renaissance Dam, have been recognized globally, contributing to Ethiopia’s selection to host COP32 in 2027.

By Cynthia Ebot Takang