AFD SUPPORTS ETHIOPIAN ECONOMIC REFORM PROGRAM

Following two decades of dynamic growth between 2000 and 2020, Ethiopia has been facing major crises. Conflicts, natural disasters, food insecurity, illiteracy and inequalities, particularly in post-conflict areas such as the Tigray region, are now slowing down the country's growth, which remains one of the poorest in the Horn of Africa.

However, its transformation power and determination, particularly on the climate front, have boosted its economic ambitions and, in January 2024, Ethiopia was one of the six countries to join the BRICS alliance. It also aims to be considered a lower middle-income country by 2025.

To achieve this goal and improve its economy, the Ethiopian government launched an economic transformation plan, "Homegrown Economic Reform", supported by the World Bank, France and the Agence Française de Développement, through a  loan of 85 million euros combined with a technical assistance program of 15 million euros.

This project should create sustainable economic growth by strengthening public enterprises and public-private partnerships.