Germany and Ethiopia signed a framework agreement for Germany’s assistance to Ethiopia for the 2015 – 17 period, amounting to 160 million dollars, although Ethiopia is looking forward to getting a total of 210 million dollars, including other commitments Germany has made or is likely to make to it.
The framework agreement, detailing “the terms of their bilateral development cooperation”, is negotiated and signed every three years, according to a press release from the German embassy, with the latest agreement continuing Germany’s assistance in the three priority areas including TVET and higher education; sustainable management of natural resources, agriculture and food security; and, conservation and sustainable use of natural resources and biodiversity, with a total allocation of 160 million dollars.
The amount of assistance pledged for the coming three year has seen an increase by about 28 million dollar from the amount that was signed for the previous three years.
The Ethiopian government is expecting more assistance from Germany for refugee assistance, agricultural mechanization and innovation centre, according to Ahmed Shide, state minister for Finance and Economic Development (MoFED) bringing its total expectation to 210 million dollars,
The innovation centre is part of a 130 million dollar project Germany plans to launch in 10 African countries including Ethiopia and Mali. The Centres in the 10 countries, according to Thomas Silberhorn, deputy minister for Economic Cooperation & Development of Germany, will include research facilities, demonstration facilities and agricultural colleges. In Ethiopia Arsi, in the Oromia Regional State, has been selected for this Green Innovation Centre because of the agricultural potential of the area and the already existing agricultural training centre in Kulumsa, near Assela, which is already supported by the German cooperation, according to an emailed response from the Embassy of the Republic of Germany in Addis Abeba.
The financial part of the 160 million dollar three-year assistance will be handled by the KfW, Development Bank of Germany, while GIZ will be responsible for the technical assistance, according to the embassy’s press release.
The framework agreement was signed by Ahmed and Silberhorn on Thursday, September 4, 2014, at the Mnistry of Finance & Economic Development. The latest pledge brings to 1.3 billion dollars Germany’s total financial and technical assistance to Ethiopia over the last 50 years, the embassy says.
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