Ethiopia is located in the Horn of Africa with an estimated population of 100+ million. It is Africa's second most populous country.
Over the past decade Ethiopia’s economy has experienced an average 10% annual growth. This is one of the fastest growing economies in the world. The country aims to eradicate poverty and achieve low middle-income country by 2025. Despite rapid growth, Ethiopia still faces multiple development challenges linked to the fact that the benefits of growth do not yet trickle down to the poorest people in the country.
The majority of EU development funding to Ethiopia is financed by the European Development Fund (EDF) with the objectives of increasing resilience, accompanying reforms and promoting sustained agriculture and economic growth.
The EU’s priorities for EU-Ethiopia relations for the period 2014 to 2020 are to:
- Support Ethiopia's immediate stability and peace by means of dialogue and by providing technical and financial support to the political reform programme and to more inclusive governance.
- Support Ethiopia's long term inclusive economic development and prosperity with programmes that promote infrastructure, investments and industrialisation, and quality employment.
- Support vulnerable populations, reducing root causes of conflict and forced displacement in Ethiopia, by building resilience, sustainable livelihoods, climate change adaptation and mitigation, as well as by backing Ethiopia's role as a host of refugees and its development of a comprehensive migration management system.
- Support Ethiopian people and country's social capital creation by improving the health system with specific focus on gender.
An amount of €815 million is foreseen for the 2014-2020 period under the National Indicative Programme of the 11th EDF. The main focus is on sustainable agriculture and food security, mainly targeting vulnerable population groups, health, to improve the national health system and its access, infrastructures (mainly roads and energy) for economic transformation and to fight climate change. It also finances actions in favour of civil society and strengthening democratic governance.
Furthermore, Ethiopia is a beneficiary of actions under the EU Emergency Trust Fund for Africa, in particular related to building the resilience of vulnerable communities and stemming irregular migration, creating greater economic and employment opportunities, supporting Ethiopia's refugees response and anti-trafficking and smuggling efforts.
Additional support to Ethiopia is channelled through other EU initiatives, in particular the Energy and Water facilities, the Instrument contributing to Stability and Peace, the Global Climate Change Alliance, the Instrument for Democracy and Human Rights, EU humanitarian assistance and regional programmes. In total, the value of EU development assistance to Ethiopia has averaged an estimated €214 million per year.