EU Backs Ethiopia’s Reform Drive with Budget Support, Unlocking Investment Opportunities
EU Backs Ethiopia’s Reform Drive with Budget Support, Unlocking Investment Opportunities
ADDIS ABABA, , 2026 – At the EU–Ethiopia Business Forum 2026, the European Union announced the resumption of budget support to Ethiopia, signaling renewed confidence in the country’s reform trajectory and unlocking new opportunities for private sector investment.
More than 500 European companies are participating in the forum, which is being held at the Hilton Hotel, Addis Ababa, underscoring strong investor interest and a growing pipeline of business opportunities in Ethiopia’s reforming and expanding market.
EU Commissioner for International Partnerships, Jozef Síkela, confirmed a package of over €140 million in budget support. The financing will support priority areas including energy, health, connectivity, and improvements to the business environment laying the foundation for increased private investment.
EU Commissioner for International Partnerships, Jozef Síkela, confirmed a package of over €140 million in budget support. The financing will support priority areas including energy, health, connectivity, and improvements to the business environment laying the foundation for increased private investment.
Speaking at the forum, State Minister of Finance Semereta Sewasew emphasized that Ethiopia is entering a decisive phase of economic transformation driven by reforms aimed at enabling private sector growth. With the International Monetary Fund projecting 9.2% real GDP growth in 2026, she highlighted key policy shifts already improving investor confidence.
Central to this transformation is the liberalization of the foreign exchange regime, which is enhancing transparency, improving access to foreign currency, and reducing barriers to doing business—creating a more predictable and competitive investment environment.
Complementing budget support, the EU is scaling up investment under its Global Gateway strategy. A €150 million Digital Economy Package will expand digital infrastructure, strengthen skills, and improve governance systems, with potential for further expansion.
In the energy sector, the €269 million RISE program will modernize electricity infrastructure, rehabilitate the Ashegoda wind farm, and deploy 2,500 kilometers of fiber optic cable, improving both energy access and digital connectivity for businesses and households.
The European Investment Bank also announced new financing operations targeting agriculture and food systems, with a focus on smallholder farmers and women-led enterprises, supporting inclusive and sustainable growth.
The European Investment Bank also announced new financing operations targeting agriculture and food systems, with a focus on smallholder farmers and women-led enterprises, supporting inclusive and sustainable growth.
Ethiopia’s ongoing reforms are opening key sectors, including telecommunications, finance, and retail, to foreign participation. The entry of Carrefour into the market reflects growing investor confidence and the tangible impact of liberalization efforts.
Efforts to improve the ease of doing business are also accelerating, with streamlined investment procedures, reduced administrative burdens, and expanded digital public services.
The forum highlighted Ethiopia’s integration into the African Continental Free Trade Area, providing investors with access to a market of 1.4 billion people.
Efforts to improve the ease of doing business are also accelerating, with streamlined investment procedures, reduced administrative burdens, and expanded digital public services.
The forum highlighted Ethiopia’s integration into the African Continental Free Trade Area, providing investors with access to a market of 1.4 billion people.
Secretary-General Wamkele Mene confirmed that Ethiopia is among countries actively trading under AfCFTA rules. Representing Austria, Foreign Minister Beate Meinl-Reisinger emphasized a shift toward a partnership based on trade, investment, and innovation, highlighting the participation of Austrian companies in sectors such as medical technology, 3D printing, and climate-resilient agriculture.
The four-day forum, held under the theme “Unlocking Global Gateway Potentials,” is expected to catalyze new partnerships and identify flagship investment projects by the end of 2026.
“The opportunity is here. The momentum is real. Now is the time to act,” emphasized State Minister Semereta Sewasew, underscoring the importance of translating investor engagement into tangible, job-creating investment projects.
“The opportunity is here. The momentum is real. Now is the time to act,” emphasized State Minister Semereta Sewasew, underscoring the importance of translating investor engagement into tangible, job-creating investment projects.
