Council of Ministers refers financial agreements to parliament, endorses investment agreement & advances key draft legal instruments

Addis Ababa, April 22, 2026 (FMC) — The Council of Ministers of Ethiopia, in its 54th regular session held today, has forwarded multiple international loan agreements and bilateral accords to the House of People’s Representatives (HoPR) for consideration, while endorsing an investment agreement and advancing key draft legal instruments for legislative review.

The Council first examined two international financing agreements comprising an €80 million loan from the French Development Agency (Agence Française de Développement – AFD) to support the implementation of Ethiopia’s Homegrown Economic Reform (HGER) program, and a €110 million loan from the European Investment Bank (EIB) aimed at enhancing access to rural microfinance services.

Following discussion, the Council unanimously decided to forward both loan agreements to the House of People’s Representatives for further deliberation and approval, noting their alignment with the country’s credit management policy framework.

The Council also reviewed an investment incentives and protection agreement related to the establishment of a urea fertilizer production and processing plant in Ethiopia. According to the Office of the Prime Minister of Ethiopia, the agreement is designed to facilitate access to international financing by meeting the requirements of lenders for development projects in countries like Ethiopia, strengthen domestic fertilizer production capacity, reduce foreign exchange expenditure on fertilizer imports, and support national efforts toward food self-sufficiency.

The Council subsequently endorsed the agreement for signing and implementation, assigning oversight responsibility to the Ministry of Finance and confirming its consistency with government policy direction.

Attention was also given to a draft proclamation on the cybersecurity of critical infrastructure, which seeks to strengthen the protection of key information systems by addressing vulnerabilities in essential infrastructure and mitigating cyber threats targeting government data and ICT-dependent services. It also aims to safeguard economic stability, social cohesion, peace, and national security.

The Council decided to forward the draft proclamation to the House of People’s Representatives with additional inputs for further deliberation and final approval.

Furthermore, the Council considered six international bilateral agreements. These include an agreement with the Governments of Vietnam and the Russian Federation on visa exemption for holders of diplomatic and service passports, as well as an agreement establishing a joint biological research center, aimed at strengthening cooperation in scientific research and development.

The remaining four agreements are air services agreements concluded with the Kingdom of Eswatini, the Republic of Angola, the People’s Republic of Bangladesh, and the Republic of Sierra Leone. These agreements provide Ethiopian Airlines with passenger and cargo traffic rights, including third and fourth freedom operations, selected fifth freedom rights, and opportunities for joint venture arrangements.

The agreements are expected to enhance air connectivity, expand market access for Ethiopian Airlines, attract foreign direct investment, support employment creation, generate foreign exchange earnings, and promote tourism development.

Following deliberation, the Council unanimously forwarded all six agreements to the House of People’s Representatives for further consideration and final approval.

Finally, the Council discussed a draft regulation establishing the Ethiopian Fire and Other Emergency Services. The regulation provides a legal and institutional framework for fire prevention and emergency response, risk reduction, vulnerability assessment in development and investment activities, advisory support during emergencies, and coordination of national emergency management systems.

The Council decided that the regulation shall enter into force upon publication in the Federal Negarit Gazette, incorporating additional inputs as necessary.