The European Union (EU) is set to provide 1.5 billion birr (45 million euros) finance to Ethiopia assisting the east African country create 400,000 new jobs.
The new jobs are expected to be created in agroindustry areas according to the deal signed this week between Ethiopian Ministry of Finance and EU representatives in Ethiopia. On Tuesday this week, Memorandum of Understanding is also signed between United Nations Industrial Development Organization (UNIDO) and European Union (EU) funding 3.3 Million Euro aiming to support coordination activities of the Country Partnership Program in Ethiopia by UNIDO.
Offcial report of EU shows that the majority of EU development funding to Ethiopia is financed by the European Development Fund with the objectives of increasing resilience, accompanying reforms and promoting sustained economic growth.
The cycle of 2014-2020 amounts to €745 million, according to the report. It focuses on sustainable agriculture and food security, mainly targeting vulnerable population groups, health, to improve the national health system and its access, roads infrastructure, and energy, to increase access and diversify the energy mix. It also finances actions in favour of civil society and strengthening democratic governance.
Under the previous cycle of funding from 2009-2013, the EU dedicated €674 million to programmes in Ethiopia, with a main focus on transport and regional integration, rural development and food security, basic social services and democratic governance.