Council of Ministers approves key economic regulations, forwards major draft proclamations to parliament
Addis Ababa, May 1, 2025 (FMC) – Ethiopia’s Council of Ministers, in its 44th regular session held today, approved several key draft regulations and forwarded proclamations pertaining to finance, trade, investment, and institutional service reforms.
In its first agenda item, the Council reviewed two financial agreements signed with the Government of Italy and the International Development Association (IDA). The €11.5 million concessional loan from Italy, repayable over 30 years with a 16-year grace period, will support Ethiopia’s Budget Support Program focused on environmental development and a green economy. Similarly, the agreement with the IDA involves the provision of 38.1 million Special Drawing Rights (SDRs) to finance the Education Sector Transformation Program. The loan carries a 0.75% service charge and is repayable over 38 years, including a 6-year grace period. In that regard, the Council unanimously decided to forward the respective draft proclamations to the House of People’s Representatives, noting that the loans align with Ethiopia’s debt management policy and are interest-free.
The Council also examined a draft proclamation to approve Ethiopia’s accession to the African Finance Corporation (AFC), a pan-African multilateral development finance institution. The AFC supports private and public sector entities in infrastructure, natural resources, and industrial development. Hence, the Council affirmed that joining the AFC would provide Ethiopia with access to critical financial and technical resources to spur sustainable economic growth and reduce poverty. The draft was unanimously approved for submission to the House of People’s Representatives for ratification.
In a related move, the Council approved a regulation to implement Ethiopia’s obligations under the African Continental Free Trade Area Agreement (AfCFTA). The regulation aims to facilitate tariff reductions on goods originating from AU member states, thereby enhancing intra-African trade, promoting industrial value chains, and supporting continental economic integration. Accordingly, the Council unanimously endorsed the regulation which is set to take effect within one month from its publication in the Federal Negarit Gazette.
The Council further discussed and approved two draft regulations related to service fees for the Ministry of Transport and Logistics and the FDRE Authority for Civil Society Organizations. The aim, according to the Office of the Prime Minister, is to structure service fees in a manner that reflects service delivery costs while considering citizens’ capacity to pay, improving institutional revenues, and enhancing service quality. These regulations will come into effect upon publication in the Federal Negarit Gazette.
Another significant item on the agenda was a draft proclamation governing how foreigners may acquire or possess immovable property in Ethiopia. The proposed legal framework seeks to attract foreign investment while safeguarding citizens’ rights to land access and ownership. It is also intended to promote housing development, balance housing supply and demand, and create employment. The Council, after detailed deliberation, agreed to forward the draft proclamation to parliament for further consideration and final endorsement.
Lastly, the Council reviewed a draft proclamation to ratify an air transport agreement signed with the Government of Austria. The agreement is expected to deepen bilateral relations, open new market opportunities for Ethiopian Airlines, and support trade, tourism, and foreign direct investment. The Council unanimously agreed to submit the draft to the House of People’s Representatives for final ratification.