EU and Ethiopia Cooperation history
The European Union-Ethiopia development partnership formally started when Ethiopia signed the Lomé Convention in 1975. The EU opened its Delegation in Ethiopia in 1975 and has taken the lead in supporting Ethiopia's economic development both financially and technically. The European Union’s mission in Ethiopia is to eradicate poverty through sustainable development, democracy, peace and security. Since the cooperation started, the EU has allocated a total of 2.7 billion Euros for Ethiopia, excluding emergency aid.
The European Union provides funding to support Ethiopia through the European Development Funds (EDF). The latest allocation (10th EDF) of these funds provides some 644 million Euros for the country in areas such as transport, rural development, trade, gender, and environmental conservation.
The European Development Funds have been supplemented by support from European Commission budget lines. The most significant of these has been the food aid and food security budget line and in lines of credit from the European Investment Bank (EIB).
The latter provides loans to the private sector directly for commercially viable projects. Such loans to Ethiopia supported projects in the fields of telecommunications, aviation and energy. In addition, a global loan was provided to the Development Bank of Ethiopia (DBE) for onward lending to small and medium sized enterprises.