Addis Ababa, December 10, 2025 (FMC) – Ethiopia and Germany have strengthened their strategic partnership with a €206 million commitment aimed at supporting economic reforms, infrastructure investment, and regional stability.
The announcement followed high-level talks in Addis Ababa and the signing of the Ethio–German Three-Year Cooperation Framework Agreement (2025–2027), which outlines joint efforts to advance reform-oriented cooperation, inclusive growth, and sustainable development. The visit also marked the first engagement of Germany’s Federal Minister for Economic Cooperation and Development with Ethiopia and the newly elected African Union Commission, highlighting Ethiopia’s role as a continental leader and a key partner for Europe in promoting a rules-based international order.
Under the agreement, Germany will provide €106 million for project- and program-based technical and financial cooperation, focusing on priority areas such as building peaceful and inclusive societies, transforming agriculture, and promoting sustainable economic development. An additional €100 million will be allocated as direct budget support aligned with Ethiopia’s ongoing reform agenda.
Finance Minister Ahmed Shide highlighted Ethiopia’s macroeconomic and structural reforms, including improving the exchange market, enhancing logistics and trade facilitation, and strengthening public service delivery. He stressed the urgent investment needs in the energy sector and emphasized the importance of private-sector participation and foreign direct investment to close the financing gap.
Germany’s Federal Minister for Economic Cooperation and Development, Reem Alabali-Radovan, reaffirmed Germany’s commitment to climate action and green transformation, citing contributions to global climate finance instruments, including the Loss and Damage Fund and the Tropical Forests and Biodiversity Facility. She also praised Ethiopia’s leadership in climate policy, including hosting the African Climate Summit in September 2025 and preparations for COP32 in 2027.
Regional stability and security were central to the discussions. Shide expressed concern over the situation in Sudan, calling for a Sudanese-led solution supported by coordinated international efforts. Ethiopia reiterated its pursuit of peaceful and legal access to the sea, describing it as vital for long-term security and economic development. Germany recognized Ethiopia’s role in the Horn of Africa Initiative and its broader responsibility as the largest country in the region for fostering peace and stability.
The talks also addressed governance and rule of law in the context of Ethiopia’s upcoming general elections, signaling Germany’s support for transparent and accountable processes.
The meeting highlighted growing German private-sector interest in Ethiopia, particularly in infrastructure projects—including a new international airport—digitalization initiatives, high-tech industries, and artificial intelligence. A recent German-Ethiopian business forum underscored the readiness of German companies to expand business ties under favorable conditions.
The delegations concluded by reaffirming their commitment to deepen diplomatic ties, strengthen development cooperation, and enhance regional and continental collaboration, signaling a new phase in the Ethiopia–Germany partnership. Ethiopia and Germany also committed to continued engagement with the African Union on key initiatives such as the African Continental Free Trade Area (AfCFTA), emphasizing cross-continental cooperation and sustainable development.