The relations between the EU and Ethiopia are founded on the Cotonou Agreement, its Articles 8 to 13 define the bilateral political dialogue between the two parties, as well as in a set of other conventions and political commitments. The EU and Ethiopia look back on 42 years of constructive bilateral relations in areas as diverse as development cooperation, trade and economic development, consolidation of democratic institutions, regional peace and security and migration. Ethiopia is one of the EU's important partners on the African continent, active in regional peace and security as well as on thematic international debates such as climate change.

Against this background, the EU and Ethiopia decided to enhance the level of the partnership. On 14 June 2016, H.E. Prime minister Hailemariam Desalegn of Ethiopia and H.E Jean-Claude Junker, European Commission President, signed a Joint Declaration towards an EU-Ethiopia Strategic Engagement. This commits both sides to an annual Ministerial Meeting and six sectoral dialogues: Governance and Human Rights; Regional Peace and Security; Countering Terrorism and Violent Radicalisation; Migration; Social and Economic Development, Investment and Trade; and Climate Change and Environmental Cooperation.

In this engagement the two sides also affirm their commitment to the fundamental principles of sustainable development, democracy, human rights, good governance and the rule of law; regional cooperation and integration. Moreover, the two sides intend to enhance their cooperation to maintain the dynamic economic growth and the ambition of Ethiopia to join middle income countries on the basis of green and inclusive economic growth.

Sustainable economic growth is essential for poverty eradication and creating inclusive, diversified economic opportunities. The EU and Ethiopia share strong economic, trade, and investment relations, with the EU being Ethiopia's largest export destination and second-largest importer of goods. The EU is also Ethiopia’s second-largest FDI investor, with a total investment stock of EUR 3.51 billion, representing 16% of Ethiopia’s FDI.

Promoting Inclusive and Diversified Growth

The EU works to foster inclusive growth by supporting value chains and promoting decent work conditions, especially for vulnerable communities. Through its initiatives, the EU contributes to improving productivity and competitiveness while promoting structural diversification of the Ethiopian economy.

Supporting the Private Sector and MSMEs

The European Chamber of Commerce (EuroCham) plays a key role in advocating for a stronger business climate and private sector development. Together with Ethiopia, the EU supports the growth of Micro, Small, and Medium-sized Enterprises (MSMEs) to boost job creation and productivity. The EU also facilitates investment through its Global Gateway Strategy, targeting key sectors to enhance Ethiopia’s economic competitiveness.

Trade Opportunities with the EU

Ethiopia benefits from the EU's “Everything But Arms” scheme, which provides duty-free and quota-free access to the EU market. With a utilization rate close to 90%, this scheme strengthens Ethiopia’s economic ties with the EU and supports its export diversification.

Global Gateway is the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through a 'Team Europe approach', Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments promoting sustainable growth. 

Between 2021 and 2027, Team Europe is mobilising up to €300 billion of investments for sustainable, transformational and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities. This allows EU’s partners to create resilient and sustainable societies and economies, but also create opportunities for the EU Member States’ private sector to invest and remain competitive, whilst ensuring the highest environmental and labour standards, as well as sound financial management. 

More information on the Global Gateway 

Global Gateway in Ethiopia

Team Europe will focus Global Gateway investments in Ethiopia in four priority areas: 

1. Human-Centric Digital Transformation

2. Clean Energy Transition for All

3. Sustainable Agri-Food Value Chains

4. Health System Strengthening

More information on the EU partnerships with Ethiopia

Contact: delegation-ethiopia@eeas.europa.eu

The EU is a key partner in strengthening democratic processes in Ethiopia. Through various initiatives, the EU promotes peacebuilding, dialogue, civic education, gender equality, and women’s empowerment. Support extends to Ethiopia’s National Election Board, the National Dialogue process, and Disarmament, Demobilisation and Reintegration efforts. A newly adopted EUR 57 million programme focuses on reinforcing democratic institutions, the rule of law, and equality across the country.

Partnering with Civil Society

The EU supports civil society in Ethiopia by integrating their participation in all areas of cooperation. Over EUR 10.8 million is provided through the Civil Society Fund Programme. The EU also supports vulnerable groups, including survivors of human rights abuses, SGBV survivos, and street children, ensuring protection and care.

Promoting Justice and Human Rights

Since 2021, the EU has supported criminal justice reform with a EUR 15 million programme aimed at improving access to justice and enhancing the coordination of justice institutions. The initiative focuses on fairness, accountability, and efficiency.

Advancing Gender Equality and Youth Inclusion

The EU promotes the inclusion of women, girls, and youth in Ethiopia’s political, social, and economic life. Guided by the Gender Action Plan III and the EU Youth Action Plan, the EU ensures gender equality and youth voices shape policies and projects through the Youth Sounding Board.

The EU and Ethiopia work together to manage migration in a safe, orderly, and human-rights-based way. Ethiopia is central to migration dynamics in the Horn of Africa, acting as a country of origin, transit, and destination. The EU and Ethiopia are focused on addressing the root causes of migration and developing solutions that benefit both sides.

Addressing Migration Drivers

Migration in Ethiopia is influenced by several key factors:

• Demographics & Economy: High youth unemployment rate drives people to seek better opportunities abroad

• Environmental Challenges: Climate change induced extreme weather event, such as droughts and floods, leads to displacement

• Political & Social Tensions: Internal conflicts and ethnic tensions contribute to displacement

• Humanitarian Role: Ethiopia hosts many refugees, playing a key role in regional stability

Key Areas of Cooperation

The EU and Ethiopia focus on:

• Migration and border Management: Strengthening migration governance and enhancing border management capacities, preventing migrant smuggling and trafficking in human beings as well as promoting legal migration pathways

• Regional Stability: Promoting peace and security to address regional instability

• Tackling Root Causes: Investing in local communities and country’s socio economic growth (increased employment opportunities, resilience of communities, improve education/skills set of youth for example)

• Voluntary Return & Reintegration: Supporting migrants' safe and dignified return and reintegration into their communities with economic and psychosocial support.

• Durable solutions for refugees and host communities: Enhancing protection and development oriented solutions in support of Ethiopia’s international pledges on refugees

The European Union, through its European Civil Protection and Humanitarian Aid Operations (DG ECHO), provides essential humanitarian aid to Ethiopians impacted by natural and man-made disasters. From 2020 to 2024, the EU allocated EUR 394 million to support humanitarian initiatives, partnering with UN agencies, international and local NGOs, and the Red Cross and Red Crescent Societies. For 2025, an initial allocation of EUR 46 million is dedicated, including EUR 6 million for the Sudan refugee crisis in Amhara and Benishangul Gumuz.

DG ECHO's strategy for Ethiopia in 2025 focuses on delivering lifesaving and protective assistance to the most vulnerable populations, prioritizing hard-to-reach and displacement areas. The approach is people-centered and integrated, advocating for cash modalities and comprehensive needs assessments.

Key pillars of the 2025 response strategy include:

1. Emergency Response: Utilizing Rapid Response Mechanisms and Crisis Modifiers to enhance disaster preparedness and manage refugee emergencies with strategic exit plans.

2. Life-Saving Interventions: Targeting conflict-affected areas (Amhara, Oromia, Benishangul-Gumuz), post-conflict zones (Tigray), and disaster-prone areas (Somali region) with integrated approaches.

3. Humanitarian Response Effectiveness: Advocating for a principled response (based on International Humanitarian Law and humanitarian principles), promoting high-quality services, enhancing coordination, and strengthening core supply chains with digital advancements.

In 2025, DG ECHO is piloting the Area-Based Approach in Northwestern Tigray to promote localized coordination and joint programming. All interventions ensure robust risk management, conflict-sensitive analysis, and accountability. DG ECHO collaborates with 25 implementing partners through 35 contracts, managed by a team of 12 Ethiopian and international experts.

Cultural Diplomacy is one of the major focus areas of EU. The EU promotes European culture and intercultural dialogue as a core part of the EU Public Diplomacy, working hand in hand with the EU Member States and cultural institutes. In Ethiopia, there is a four-member European Union National Cultural Institutes (EUNIC) cluster made up of the "British Council", the French "Alliance Francaise", the German "Goethe Institute" and the "Italian Cultural Institute". A programme of European and Ethiopian cultural events, including a European Film Festival and a number of music festivals held annually. The EU Delegation reaches out to strategic audiences by organising a wide range of events and activities aiming at fostering engagement in two-way dialogues with young people, political figures, media, academia, business and civil society. These dialogues aim at promoting and explaining EU policies, raising awareness about EU issues and concerns and the importance of partnership, strengthening bridges by cultivating mutual respect and understanding based on shared values and interests.