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Ethiopia has officially launched the €6 million ECOTRADE Project, a four-year initiative funded by the European Union (EU) to support the country’s implementation of the African Continental Free Trade Area (AfCFTA).

The high-level launch ceremony took place today  in Addis Ababa, with the presence of Ethiopia’s Minister of Trade and Regional Integration, Dr. Kassahun Gofe; EU Ambassador to Ethiopia, Sofie From-Emmesberger; Julien Voituriez, First Advisor at the Embassy of France to Ethiopia; and other senior officials, development partners, and private sector representatives.

ECOTRADE, designed and managed by Expertise France, a subsidiary of Agence Française de Développement and France’s public agency, aims to enhance Ethiopia’s trade policy framework by aligning it with AfCFTA protocols, while also building the capacity of public institutions and empowering the private sector—particularly small and medium-sized enterprises (SMEs) and women-led businesses—to effectively participate in regional markets.

“This initiative speaks directly to our national development aspirations,” said Dr. Kassahun. “It supports Ethiopia’s Homegrown Economic Reform Agenda, complements our national trade policy direction, and is anchored in our broader integration goals under the African Union’s Agenda 2063.”

The project will operate in close coordination with the Ministry of Trade and Regional Integration (MoTRI), the Ethiopian Customs Commission, chambers of commerce, exporters’ associations, and other key public-private actors. Through targeted interventions in policy alignment, trade facilitation, and value chain development, ECOTRADE is expected to improve regional connectivity and foster inclusive economic growth.

Ambassador From-Emmesberger reaffirmed the EU’s commitment to Ethiopia’s development through collaborative and people-centered initiatives.

“At the heart of ECOTRADE lies a bold ambition—to enable Ethiopia to reap the full benefits of AfCFTA,” she said. “This means investing in people: entrepreneurs, women traders, customs officials, and students, all of whom are drivers of transformation.”

The ECOTRADE Project also aligns with broader continental and global development goals, including the EU’s Global Gateway strategy and the UN Sustainable Development Goals. It underscores the growing emphasis on trade-led development as a means to boost competitiveness, reduce poverty, and position Ethiopia as a key player in the emerging single African market.

Ethiopia ratified the AfCFTA agreement in 2019 but has yet to fully liberalize its tariffs or engage in the AfCFTA’s Guided Trade Initiative. The ECOTRADE launch comes at a pivotal moment, as Ethiopia is preparing to validate its comprehensive national AfCFTA implementation strategy later today.

To ensure effective execution, MoTRI has established a dedicated coordination office for trade integration and facilitation. This office will work alongside a national implementation committee and three technical working groups tasked with guiding, overseeing, and ensuring accountability across institutions.

 



 

Ethiopia and the European Union (EU) today signed a major  €240 Million (USD266.7 million) grant agreement under the 2024 Annual Action Programme (AAP-2024), reinforcing their five-decade-long strategic partnership. The agreement, inked at the Ministry of Finance, targets critical development areas, including agribusiness expansion, digital skills training, post-conflict recovery, and governance reforms.  

The funding will support agribusiness initiatives to enhance productivity and create jobs for smallholder farmers, while also strengthening digital skills within Technical and Vocational Education and Training (TVET) institutions to drive economic growth. Additionally, the program will bolster democratic institutions, restore basic health services in conflict-affected regions, and provide psychosocial support for survivors of gender-based violence. Another key focus is improving economic opportunities for displaced populations through integrated solutions and boosting private sector engagement in vital value chains.  

Finance Minister Ahmed Shide hailed the EU’s support as pivotal in addressing Ethiopia’s pressing challenges. “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education,” he said. “It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”  

The minister also stressed the importance of regional integration under the EU’s Global Gateway Initiative, highlighting the Horn of Africa’s untapped potential for economic cooperation. “As we navigate evolving economic landscapes, our focus on regional cooperation is more critical than ever,” he noted, referencing collaborative frameworks like the Horn of Africa Initiative (HOAI).  

EU Ambassador to Ethiopia,  Sofie From-Emmesberger, underscored the agreement’s broader significance, stating, “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”  




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