ADDIS ABABA – The European Union has launched a 650 million Euros Multiannual Indicative Programme (MIP) for Ethiopia.
The cooperation program was launched by EU International Partnerships Commissioner Jutta Urpilainen and Finance Minister Ahmed Shide on Tuesday.
The Multiannual Indicative Program will run for four years, starting in 2024. It will avail €650 million in the form of grants to finance development programs in the country, according to the Ministry of Finance (MoF).
The Program would focus on three “priority areas” of Green Deal, Human Development, as well as Governance and Peace.
It is expected to support efforts towards peace consolidation, macroeconomic stability, recovery and reconstruction, and political reforms, says the ministry.
Both Ethiopia and the EU see the launching of the new cooperation framework as an opportunity to refresh and strengthen bilateral partnership.
Finance Minister Ahmed and Commissioner Urpilainen also held a bilateral discussion on ways to strengthen the Ethiopia-EU relation, including the resumption of the Budget Support modality.
Ahmed also briefed Urpilainen on the current socioeconomic and political situation in Ethiopia and the steps that have been taken to consolidate peace, reconstruction and recovery efforts.
The EU Commissioner, who also met with Prime Minister Abiy Ahmed, said: “We encourage progress in Ethiopia and know that reconstruction will take time and further stabilization will require enhanced accountability.”
The EU “is ready to support this effort” as well as to “normalize cooperation with Ethiopia on the condition that it continues to uphold commitment to transitional justice and reforms,” Urpilainen said in X, formerly known as Twitter.