On October 3rd, European Commissioner for International Partnerships, Jutta Urpilainen, and Ethiopia's Minister for Finance, Ahmed Shide, jointly inaugurated the EU’s Multiannual Indicative Programme (MIP) with Ethiopia. Part of the EU’s Global Gateway investment strategy, this new international partnership is set to be enacted from 2024 to 2027. The aim of this partnership is to develop trusted and sustainable connections with partner countries, with the MIP focusing on three priority areas: the Green Deal, Human Development and Governance and Peacebuilding.

Under this newly announced framework, the European Union pledges €650 million to propel Ethiopia's development in a transformative, inclusive, and forward-looking manner. At its core, the MIP adopts a humanitarian-development-peace nexus approach, aiming to support Ethiopia's engagement in a peace process, transitional justice, and reform. Together, the EU and Ethiopia aspire to gradually normalize relations through structured political dialogue and foster a mutually reinforcing partnership.

The implementation of the MIP will be done in cooperation between the two parties, with the funding being broken down below.

• Green Deal (€260 million): This priority area is designed to bolster policies and structural reforms that stimulate innovative financing and private sector investments, propelling Ethiopia's transition toward sustainability.

• Human Development (€228 million): This sector builds upon and expands the aid already provided for essential needs and services, particularly in response to the conflict situation of 2021-2022. The focus here is on the reconstruction and delivery of critical basic services to the Ethiopian population.

• Governance and Peacebuilding (€156 million): This segment encompasses three crucial sectors:

  • Economic Governance: Emphasizing the transition to a private sector-led and investment-friendly economy, this facet seeks to foster economic growth and stability.

  • Democratic Governance: Promoting democracy, the rule of law, and human rights, this component aims to strengthen the foundations of good governance and participatory democracy in Ethiopia.

  • Peacebuilding: With a focus on inclusive actions that foster social cohesion, trust, and a culture of mutual respect and dialogue, this aspect seeks to pave the way for sustainable peace and stability in the region.