The Ethiopian Council of Ministers greenlights major agreements and legal reforms to support economic development, international trade, and housing accessibility.
Big Financial Agreements Approved
Addis Ababa, May 1, 2025 — The Ethiopian Council of Ministers held its 44th regular meeting today. The council reviewed several key topics and made big decisions. One of the first issues on the table was two financial agreements with the Government of Italy and the International Development Association (IDA).
The deal with Italy involves 11.5 million Euros. This money will help support the country’s green economy and environment programs. The loan will be repaid over 30 years, with a grace period of 16 years. That means Ethiopia will not start paying the money back until after 16 years.
The second agreement is with the IDA and involves 38.1 million Special Drawing Rights (SDR). This money will fund the Teaching and Learning Empowerment Education Sector Transformation Program. The loan comes with a low service fee of 0.75 percent and will be paid back over 38 years, including a 6-year grace period.
The Council said both deals are interest-free and in line with the country’s loan policy. After full discussion, the Council agreed to send the draft proclamations to the House of People’s Representatives for final approval.
Supporting Africa Finance Corporation
The Council also discussed a draft law about joining the Africa Finance Corporation (AFC). The AFC helps fund large projects in areas like infrastructure, mining, and industry. It gives both financial and technical help to private and public sectors.
The Council believes joining the AFC will help Ethiopia grow its economy and reduce poverty. After reviewing the proposal, the ministers agreed to forward the draft law to the House for ratification.
This move reflects Ethiopia’s growing interest in regional economic groups. Experts say the country could benefit from shared resources, joint ventures, and stronger partnerships with other African nations.
Cutting Tariffs Under AfCFTA
In another major decision, the Council reviewed a draft regulation to lower tariff rates on goods under the African Continental Free Trade Area Agreement (AfCFTA). This agreement aims to make trade among African countries easier and cheaper.
Lowering tariffs can:
- Boost trade across borders.
- Strengthen local markets.
- Create new business opportunities.
- Help build a stronger value chain.
The Council also discussed the need to set new customs tariff rates on goods from AfCFTA member countries. The goal is to make it easier for goods to move freely without being blocked by high taxes or long customs delays.
After the discussion, the Council agreed to implement the new tariff rules within one month after they are published in the Federal Negarit Gazette.
New Service Fees for Government Agencies
Two new draft regulations were also on the agenda. These set new fees for services from the Ministry of Transport and Logistics and the Civil Society Organizations Authority.
These fees are part of a larger effort to make government services more efficient and better organized. The Council agreed that the new rules should take effect once published in the Federal Negarit Gazette.
Land Ownership for Foreign Nationals
The Council moved on to a draft proclamation about immovable property ownership by foreign nationals. This law aims to create clear rules for foreigners who want to buy or invest in property in Ethiopia.
The Council said the goal is to:
- Encourage more foreign investment.
- Grow the housing market.
- Create more jobs.
- Balance housing supply and demand.
- Protect the rights of Ethiopian citizens.
By setting clear rules, the government hopes to make the country more attractive to international investors without hurting local communities.
After a detailed discussion, the Council decided to send the proclamation to the House of People’s Representatives.
Air Agreement with Austria
Lastly, the Council reviewed a draft proclamation to ratify an air transport agreement signed with Austria. This agreement will:
- Strengthen ties between Ethiopia and Austria.
- Help Ethiopian Airlines access new markets.
- Promote tourism.
- Increase export and trade.
- Bring more foreign currency into the country.
- Create job opportunities.
The Council welcomed the agreement and agreed to send it to the House for final approval.
The Council of Ministers made several major decisions in its latest meeting. From green loans to trade laws, the choices show that Ethiopia is working hard to grow its economy, open to the world, and improve its governance. By passing these laws and sending them to the House of People’s Representatives, the country is taking clear steps toward long-term progress.
