France to Make €40mln Budgetary Support to Ethiopia

ADDIS ABEBA – France announced it will disburse 40 million euros of budgetary support to Ethiopia ahead of time after its top diplomat in Ethiopia, Frédéric Bontems, held a discussion with Finance Minister Ahmed Shide today.

The finance will help the Ethiopian government to face short-term challenges and support its emergency plan as well the current national efforts to achieve the economic transition of the country, its embassy says in a statement sent to The Monitor.

The 40 million euros are part of an 85 million euros loan agreement signed between the two nations on June 6, last year.

At that time, the two nations said the finance would help Ethiopia implement its ambitious economic reforms, which was the result of a joint declaration of intent agreed during the visit of French President Emmanuel Macron in Ethiopia on March 12th, 2019.

France made the first disbursement of 45 million euros in December 2019 with a plan to release the amount of 40 million euros in 2021.

“In the COVID-19 context, France decided to release it immediately” through the French Development Agency (AFD), according to France embassy in Ethiopia.

AFD has also engaged discussions with all its Ethiopian partners in on-going projects to reallocate funds or to adapt the activities to the most urgent needs related to the COVID19 crisis.

The decisions that could be taken on these issues will facilitate the Ethiopian government’s response to the sectoral priorities in this difficult context.

This support by France is part of the concerted supports of the European Union and its member states, in a “Team Europe” approach against COVID-19 in Ethiopia.

The Agence Française de Développement (AFD) funds, supports and accelerates the transitions to a fairer and more sustainable world. Its current portfolio in Ethiopia amounts to more than 500 million euros.

By Sisay Sahlu

Image: Ambassador Frédéric (L) and Finance Minister Ahmed exchanging documents today [Photo France Embassy]