ADDIS ABEBA – Germany pledges a new 352.5 million euros to promote private investment and sustainable economic development in Ethiopia.
The East African nation initiated economic reforms when Prime Minister Abiy Ahmed came to power in April 2018, which are opening the Horn of Africa nation to more foreign capital.
With the latest reform partnership support, Germany will “promote private investment, sustainable economic development” in Ethiopia, its embassy said in a statement.
Minister of Finance Ahmed Shide and Germany’s Economic Cooperation and Development Minister Gerd Mueller signed a joint letter of intent on Monday.
Prime Minister Abiy Ahmed witnessed the signing ceremony.
Mueller and Germany’s Minister of Labor and Social Affairs Hubertus Heil are in an official visit to Ethiopia weeks after the G20 Compact with Africa (CWA) conference held in Berlin.
During the conference, the two nations concluded a Declaration of Intent on the Design of a Reform Partnership to Promote Private Investment and Sustainable Economic Development.
Both have agreed to deepen their partnership and have opened a new chapter in their bilateral relationship, reads the statement.
Germany intends to commit a total of 352.5 € in the key areas stated in agreement.
Accordingly, part of the finance will contribute to the World Bank’s Growth and Competitiveness
Program or Development Policy Operation (DPO) whose goals reflect the central reform priorities of the Ethiopian government.
The Ministry of Finance is also expected to use the support to strengthen Ethiopia’s industrial parks, increase tax revenues by improving the tax system and to enhance the investment climate.
The two nations also agreed to cooperate in the agriculture sector as well as in the areas of vocational training and economic development with the goal to strengthen the private sector and create jobs in the East African nation.
On Monday, Prime Minister Abiy also presided over a handover ceremony up to 144 agriculture equipment, including spare parts, to Ethiopia.
The equipment have been provided by the German Government at the request of the Prime Minister and in support of agriculture mechanization in Ethiopia.
Prime Minister Abiy welcomed the visiting German Minister for Economic Cooperation Gerd Müller (C), and Germany’s Minister of Labor and Social Affairs Hubertus Heil (L) on Monday Morning. [Photo PMO].