The EU encourages investment in Ethiopia, Africa

Driven by strong economic growth, Europe's investment in Ethiopia, a country in the Horn of Africa, reached approximately 500 million euros in 2025—the highest level since 2021. However, despite being seen as a promising market, Ethiopia remains trapped in turmoil and conflict.

The EU focuses on Ethiopia’s strengths

Speaking to a packed audience, Jozef Sikela, the Czech European Commissioner responsible for international cooperation, outlined Ethiopia’s advantages: robust growth expected to reach 9% by 2026; and a vast market of 120 million people. EU Ambassador to Ethiopia, Finnish diplomat Sofie From-Emmesberger, added that the liberalization reforms undertaken by the Ethiopian government over the past two years are equally compelling. She said, “People are noticing new opportunities now in the private sector, banking, insurance, and retail industries.”

Despite its economic vitality, Ethiopia remains one of the most unstable countries on the African continent. Conflicts continue in Ethiopia’s two most populous regions—Amhara and Oromia. Tensions between Addis Ababa and the authorities in Tigray remain severe, with concerns about renewed conflict arising in recent months. The rapidly deteriorating security situation has not deterred the EU.

The EU’s economic policy is shifting recently

Reporting from RFI Afrique, the French radio station’s Africa team cited Claudio Pasqualucci, Italy’s trade commissioner in Addis Ababa. He stated that the Ethiopian government has made tremendous efforts toward peace and expressed optimism about the future. Ladji Ouattara, a scholar at Cauris Institut, a geopolitical research institute in Côte d’Ivoire, noted that European investments in Ethiopia clearly reflect a recent shift in the EU’s economic policy. He analyzed, “This is part of a [realpolitik] strategy.”

The EU recently announced a 559 million euro investment to fund Ethiopia’s energy infrastructure development.

Source: rfi

Original: toutiao.com/article/1865599717253191/

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