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Germany, Ethiopia Strengthen Ties with €206M Cooperation Deal, Focus on Reforms and Green Development

Dec 10, 2025

Germany, Ethiopia Strengthen Ties with €206M Cooperation Deal, Focus on Reforms and Green Development

High-level delegations from Germany and Ethiopia met today in Addis Ababa to reaffirm and further strengthen their longstanding bilateral cooperation.

The German delegation was led by Reem Alabali-Radovan, Federal Minister for Economic Cooperation and Development (BMZ), while the Ethiopian side was led by Ahmed Shide, Minister of Finance.

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Minister Radovan’s mandate centers on reform-oriented cooperation and advancing sustainable, inclusive development partnerships.

The meeting followed the signing of the Ethio–German Three-Year Cooperation Framework Agreement (2025–2027).

Ethiopia welcomed the strong political will demonstrated by Germany’s new government to continue engagement, even amidst domestic political pressures surrounding development assistance.

Germany and Ethiopia Strengthen Ties with €206M Cooperation Deal, Focus on Reforms and Green Development

Under the new cooperation framework, Germany pledged a total of EUR 206 million to Ethiopia.

Minister Ahmed Shide provided an update on Ethiopia’s ongoing macroeconomic and structural reforms, emphasizing the government’s commitment to deepening reform implementation.  

He also underscored the urgent investment needs of the energy sector—from generation to transmission and distribution—and the importance of private-sector participation to close the financing gap. Ethiopia is working to attract more foreign direct investment (FDI) and improve the overall business climate.

Minister Radovan reaffirmed Germany’s strong leadership on climate action, emphasizing its continued commitment to green transformation.

She highlighted Germany’s significant contributions to major global climate-finance instruments.


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