The European Union (EU) and the Government of Germany believe that Ethiopia’s ongoing macro-economic reforms are opening new opportunities for private sector growth and economic transformation. A transparent tax system and a modern, internationally aligned customs framework are key to unlocking investment, trade and jobs.
Against this backdrop, the European Union and Germany officially launched a new initiative called “Modernize and Harmonize Tax Administration and Customs Management for Private Sector Growth in Ethiopia”, during the EU–Ethiopia Business Forum on 21 April 2026.
“The initiative, implemented by GIZ, is part of the second phase of the German Development Cooperation Project on Private Sector Development in Ethiopia and contributes to Germany’s broader engagement to promote sustainable business growth, decent job creation and support the effective implementation of ongoing economic reforms,” stated the Germany Embassy in Addis Ababa in its press statement.
The project, that runs until end of 2029, aims to strengthen tax administration and customs management to make systems more transparent, predictable and efficient, thus contributing to Ethiopians aim of joining the WTO in due course.
By supporting public institutions, it will improve the overall business environment, enabling Ethiopian and international firms – including European and German businesses – to invest, grow and integrate into regional and global value chains.
“Ethiopia’s reform agenda offers significant opportunities for private sector-led growth. By improving the transparency and efficiency of tax and customs systems, this initiative will help create the conditions for domestic and foreign investment and job creation,” said Ferdinand von Weyhe, Deputy Ambassador of Germany to Ethiopia.
“This project marks an important step in supporting Ethiopia’s efforts to modernize its tax and customs systems. By improving efficiency and addressing key bottlenecks, it will help create a more predictable and business-friendly environment for private sector growth,” said Sofie From-Emmesberger, EU Ambassador to Ethiopia.
