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A nation more than 2,000 years old undergoing radical change

Ethiopia is a country of superlatives: due to its size and its population structure (with over 110 million residents, of which around 1 million are refugees from neighbouring countries), the country plays a central role in the political stability and economic development of the Horn of Africa region. Abiy Ahmed has been Prime Minister of the country since 2018 and since he took office, he has pursued a policy of political and economic opening up: a peace agreement with Eritrea, the release of political prisoners, more rights for refugees, economic and financial policy reforms.

To support the dynamism of the reforms, German Development Minister Gerd Müller and Ethiopian Prime Minister Abiy Ahmed agreed in 2018 to deepen their cooperation by forming a reform partnership. The Ethiopian side has committed to implementing economic policy reforms and has signed up to the principles of good governance, democratisation and the rule of law. For its part, Germany is providing Ethiopia with more support to promote investment, simplify private sector involvement and create jobs for young people. This also includes the special initiative for Training and Employment. The two national implementing organisations KfW and GIZ work together closely to implement the various programmes.

Despite the positive developments, creating a political environment that enables peaceful co-existence in the multi-ethnic country remains a major challenge: conflicts between various ethnic groups and independence movements by individual ethnic groups and regions damage national unity. In autumn 2020, the arguments between the Tigray regional government and the Ethiopian central government around the issue of centralised versus regional government legitimacy flared into military conflict.

Local office

KfW Office Addis Ababa

Director KfW Office: Diana Hedrich

Kirkos Kifle Ketema
Woreda 8
P.O. Box 100009 Addis Ababa

Phone: +251 11 51 80 24 1
Fax: +251 11 51 80 24 1

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