The EU has announced more than €400 million in funding and loans for Ethiopia, including the resumption of over €140 million in budget support.
The measures were set out by EU Commissioner for International Partnerships Jozef Síkela during a keynote address at the Ethiopia Business Forum in Addis Ababa, the European Commission reported in a release on Tuesday.
The EU will resume budget support to Ethiopia, unlocking over €140 million for priorities including energy, connectivity, healthcare and reforms to improve the business climate, the statement said.
The EU decision followed what it described as Ethiopia’s progress in economic and governance reforms.
Síkela said the resumption of budget support reflected confidence in Ethiopia’s reform agenda and the EU’s long-term commitment to the partnership.
A separate Digital Economy Package worth €150 million was also signed, with the EU and Ethiopia agreeing a joint framework to support Ethiopia’s digital transformation as “Team Europe” — the EU, its member states and European financial institutions working together.
The money is intended to support digital infrastructure such as fibre optic expansion, skills development for young people and governance reforms for the tech sector.
Loans and existing projects
The European Investment Bank signed two new lending operations totalling €130 million, including a €20 million loan to Zemen Bank for credit to agri-food businesses and smallholder farmers, and a €110 million loan aimed at rural finance, the Commission said.
It also highlighted the RISED programme — a €269 million “Team Europe” investment — and said it had supported electricity access for 4 million people and the laying of 2,500 km of fibre optic cable.
The Commission cited the rehabilitation of the Ashegoda Wind Farm in Tigray, saying this reduced power outages by 50% and saved 16 GWh of energy annually.
The Ethiopia Business Forum brings together more than 500 participants from Ethiopia and Europe and runs in Addis Ababa from 20 to 22 April 2026.
