EU resumes budget support to Ethiopia after five-year suspension

The European Union has resumed budget support payments to Ethiopia, releasing €140 million annually.

This marks the end of a five-year suspension that began amid the civil war in the Tigray region.

The EU's International Partnerships Commissioner, Jozef Sikela, announced the funding during a visit to Addis Ababa for the EU-Ethiopia Business Forum.

He described the move as a testament to the EU's confidence in Ethiopia's reform agenda and its long-term commitment to the partnership.

Prime Minister Abiy Ahmed, who took office in 2018 and received the Nobel Peace Prize in 2019 for ending the war with Eritrea, has faced renewed challenges due to the conflict with the Tigray People's Liberation Front (TPLF).

The civil war, which officially ended with a peace agreement in 2022, resulted in approximately 600,000 deaths and led to the suspension of around €90 million in EU budget support amid allegations of human rights abuses.

In addition to the budget support, the EU will invest €150 million in Ethiopia's digital infrastructure and €269 million in energy projects.

These investments aim to support Ethiopia's economic liberalization and development efforts.

The resumption of EU funding comes as Ethiopia continues to experience isolated clashes with the TPLF and diplomatic tensions with neighboring Eritrea and Somalia, raising concerns about regional stability.

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