Ethiopia and the European Union (EU) signed a 240 million euro (approximately 32.3 billion birr) grant agreement under the 2024 Annual Action Programme (AAP-2024) under the 2024 Annual Action Programme (AAP-2024) at the Ministry of Finance.

PAA-2024 focuses on key priorities, including strengthening the agri-food sector to create jobs for smallholder farmers and developing digital skills training in technical and vocational education and training (TVET) institutions. It also aims to strengthen democratic institutions by promoting governance and inclusion, especially in post-conflict recovery efforts

The program also addresses urgent needs such as the restoration of basic health services for communities affected by the conflict and psychosocial support for victims of gender-based violence. It also promotes integrated solutions to forced displacement, improving economic opportunities for refugees and displaced persons, while stimulating private sector participation in key sustainable development value chains

This funding is critical to stimulating private sector investment, modernizing our tax and customs systems, and improving services in the agri-food, health, and education sectors. It reinforces our long-standing partnership and contributes significantly to our ongoing reforms.

Beyond financial support, Minister Shide emphasized the importance of taking advantage of the EU's Global Gateway Initiative to foster regional integration. He highlighted Ethiopia's commitment to strengthening its economic ties under the Horn of Africa Initiative (HOAI), stressing that strengthened cooperation is essential to unleash the vast economic potential of the region

The EU Ambassador to Ethiopia, H.E. Sofie From-Emmesberger, reiterated the broader importance of the agreement:

“The PAA-2024 is not only a financial commitment: it is a testament to our shared values and our commitment to the sustainable development of Ethiopia. This partnership reflects our shared vision for a prosperous and resilient future.