Ethiopia and United States Formalize $1.6 Billion Health Cooperation Deal

Addis Ababa, December 23, 2025 (FMC) — The Federal Democratic Republic of Ethiopia and the Government of the United States signed a Memorandum of Understanding (MoU) worth 1.616 billion United States dollars on Tuesday, formalizing expanded cooperation in Ethiopia’s health sector. The agreement was signed at a ceremony held at the Ministry of Finance.

The MoU reaffirms the long-standing partnership between the two governments through a five-year grant framework aimed at enhancing disease prevention, strengthening public health systems, and improving the resilience of Ethiopia’s health sector.

Under the agreement, the United States Government committed up to 1.016 billion USD in grant financing, alongside an additional 150 million USD in performance-based grants. The funds will be channeled through government systems to support Ethiopia’s national health priorities over the coming years.

The Government of Ethiopia, in turn, reaffirmed its commitment through co-financing of up to 450 million USD, coupled with policy leadership and implementation efforts to ensure sustainability, accountability, and measurable impact.

Both sides underscored that the MoU builds on decades of productive Ethiopia–United States cooperation, founded on mutual respect, shared responsibility, and a common objective of safeguarding public health and advancing sustainable development.

The agreement reflects the shared resolve of Ethiopia and the United States to further deepen collaboration in the health sector and jointly address existing and emerging health challenges for the benefit of the Ethiopian people.

The MoU was signed by Ahmed Shide, Minister of Finance, Mekdes Daba, Minister of Health, and Ervin Massinga, Ambassador of the United States of America.