The European Union and EuroCham have signed a €1 million grant agreement to strengthen the Chamber’s capacity and support initiatives enhancing Ethiopia’s FDI competitiveness, as European businesses met with the Ethiopian government to discuss ongoing investment reforms and ways to improve the business climate.

The European Union and the European Chamber in Ethiopia (EuroCham) signed a €1 million grant agreement on 28 October 2025, to strengthen the Chamber’s institutional capacity and support a structured public-private dialogue on Ethiopia’s investment climate.

The grant agreement formalizes EU support for EuroCham’s advocacy and business facilitation work. It gives the Chamber the resources to strengthen its role as a dialogue platform between European investors and Ethiopian authorities, address regulatory and administrative issues more consistently, and push forward new efforts to improve Ethiopia’s competitiveness for FDI. EuroCham’s Board Chair, Ben Depraetere, emphasized that the grant would enhance ongoing initiatives to promote policy transparency, investment protection, and competitiveness. “EuroCham’s EU-funded initiatives include policy research as well as investment promotion activities and the upcoming launch of a Business Incubation Center in Addis Ababa,” he said. “These programmes aim to attract new European investors to Ethiopia and strengthen collaboration with government agencies on policy reform.”

The ceremony was followed by a Public-Private Dialogue (PPD) between the Ethiopian government – represented by the Ministry of Finance, Ministry of Revenues, Ethiopian Investment Commission, Ethiopian Customs Commission and Immigration and Citizenship Services – with European businesses in Ethiopia. It provided a platform for collaboration between the government, the private sector, and development partners to discuss recent economic reforms and ways to create a better environment for investment.

State Minister of Finance, H.E. Semereta Sewasew, emphasized the significance of the platform for the government, noting its role in fostering meaningful engagement with the private sector. “The government attaches great importance to platforms such as this dialogue, which serve as a vital challenge for promoting private sector engagement and attracting new investment and generating employment opportunities,” she stated.

In his remark, EIC Commissioner Dr. Zeleke Temesgen announced that the Commission has established a dedicated PPD Secretariat and an online tracking platform to monitor the progress of investment-related policy reforms. The platform allows investors, chambers, and government agencies to access real-time updates on regulatory issues and commitments.

Speaking at the ceremony, H.E. Sofie From-Emmesberger, Ambassador of the European Union to Ethiopia, highlighted the strategic importance of the public private dialogue. “This dialogue will serve as a valuable platform for constructive discussions on collaborating on regulatory implementation, streamlining customs and tax processes, strengthening investment protection, ensuring legal predictability and facilitating smoother immigration procedures. Together we are taking proactive steps towards creating a more conducive business environment,” she said, noting that European companies accounted for 16 percent of Ethiopia’s foreign direct investment in 2023, totaling US$3.8 billion, and contributed around US$27 million annually to corporate social responsibility programmes.

The dialogue addressed several key concerns raised by European investors, including issues related to customs, taxation, and the overall investment climate. The event concluded with a shared commitment from all parties to maintain a structured, transparent dialogue.