Economy

Germany funds Ethiopia’s homegrown economic reform

In support of Ethiopia’s recently launched home-grown economic reform, the Government of Germany provides 352.5 million Euros.

In its press statement, the Germany Embassy in Addis Ababa stated that Germany aims to support the Homegrown Economic Reform Agenda of the Ethiopian government. “During this year (2019) Germany intends to commit a total of 352.5 million Euro for the above mentioned areas,” it said.



During a bilateral meeting between the German and Ethiopian governments Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia, and Dr. Gerd Mueller, Minister for Economic Cooperation and Development of the Federal Republic of Germany, signed a joint letter of intent, according to the statement.

The letter of intent lays the foundation of the new reform partnership between Germany and Ethiopia. Dr. Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia witnessed the signing ceremony.

The statement also stated that within this partnership Germany will support the ambitious reform agenda of Ethiopia in three ways:

1. Germany will contribute to the World Bank’s Growth and Competitiveness Program (Development Policy Operation – DPO) the goals of which reflect the central reform priorities of the Ethiopian government. The Ministry of Finance of the Federal Republic of Ethiopia intends to use the envisaged funding to strengthen industrial parks, increase tax revenues by improving the tax system and to enhance the investment climate.

2. Both sides agree to cooperate in the areas of vocational training and economic development with the goal to strengthen the private sector and create jobs.

3. A third pillar of the cooperation between Germany and Ethiopia is the agricultural sector. Germany supports the strengthening of agricultural value chains, an increase of agricultural productivity and (industrial) processing and marketing.