By Eyasu Zekarias

Ethiopia receives pledge assistance worth €650 millioncourtesy of the European Union (EU) for the reconstruction and macroeconomic recovery of the country following the bloody civil war.

As indicated, both parties signed a development and financial framework called Multiannual Indicative Program (MIP), which is said to provide an opportunity to create a continuous relationship between the Ethiopian government and the EU.

Jutta Urpilainen, the EU commissioner for international partnerships, announced the agreement on October 3 during a press conference alongside Finance Minister Ahmed Side in the Capital, following a visit of top EU officials.

“It is time to gradually normalize relations and rebuild a mutually reinforcing partnership with your country,” said Urpilainen, describing the aid package as “the first concrete step” in this process after a cease-fire ended the war last November.

As sources close to the issue cite, the EU aid package was initially worth 1 billion Euros and was due to be given to Ethiopia from 2021 to 2027, but it was suspended in late 2020 after fighting broke out in the northern Tigray region.

Ahmed Shide on his part expressed that the signing of the MIP was “very important” for Ethiopia, adding that the EU had for 40 years been a, “Strategic partner for Ethiopia, supporting Ethiopia’s economic development and economic reform.”

The MIP envelop will avail €650 million in the form of grant to finance development programmes focused on the priority areas of green deal, human development and good governance and peace, which is aimed at improving the living standards of all Ethiopians.

Signed every seven years, MIPs define priority areas of cooperation between the EU and its partners, including financial allocations.