Ethiopia, AFD Sign 28.5 Million Euros Agreement in Budget Support and Technical Assistance

Addis Ababa, 25, 2025 (ENA)— The Ministry of Finance and Agence Française de Développement (AFD) have signed a significant financial agreement to support Ethiopia's ongoing economic reform agenda, according to a press statement issued by the ministry today.

The agreement for this first tranche of the financial and technical support from France to the Homegrown Economic Reform (HGER) II comprised 25 million Euros in budget support signed on December 21, 2024, and 3.5 million Euro grant for technical assistance signed today.

Finance State Minister Eyob Tekalign and AFD Country Director Louis-Antoine Souchet signed the grant for technical assistance.

Under the agreement, the 10 million Euros of the planned 25 million budget support was front-loaded and disbursed in December 2024.

The technical assistance component will be implemented by the ministry and the National Bank of Ethiopia, focusing on the implementation of the HGER II, especially financial sector reforms, state-owned enterprises policy reforms, PPP regulatory frameworks, and sectoral reforms involving multiple implementing agencies, it was learned.

During the signing ceremony, the state minister said "the partnership represents another milestone in the longstanding collaboration between Ethiopia and France, reinforcing their shared vision in advancing key economic reform initiatives. It also comes at a crucial time as Ethiopia continues its structural reform efforts".

Eyob also expressed appreciation for AFD's continued support and commended the flexible design of the technical assistance program, which accommodates multiple partners while ensuring value for money.

On his part, AFD Country Director Louis-Antoine Souchet reaffirmed the commitment of the agency to Ethiopia's reform agenda.

"AFD is pleased to continue its support to Ethiopia's ambitious economic transformation. This agreement reflects France’s continued commitment to supporting HGER agenda, through strengthening governance of SoEs, economic sustainability, and public sector efficiency."

He added that the agency will continue to develop fruitful peer-to-peer exchanges and knowledge sharing between French and Ethiopian entities in these areas that are crucial for efficient reform implementation.

AFD's budget support and technical assistance would continue in the coming years, with an expanded focus on tax policy, tax administration and civil service reforms as well as critical sectors such as energy and logistics, the country director stated.