The European Union has allocated €680 million in assistance to support Ethiopia's recovery, a package which was originally contingent on IMF-led economic reforms in the country.
Two years of civil conflict erupted in 2020 when fighting broke out between national forces and militias in the Tigray region of northern Ethiopia, resulting in the suspension of the aid two years ago.
While a truce in November 2021 ended the worst clashes in Tigray, violence has since spread to neighboring areas. Ongoing security issues continue impacting civilians, according to UN reports.
The EU aid aims to address humanitarian needs and stability efforts across affected communities. Although initially planned for disbursement between 2021-2027, the now-released funds were tied to Ethiopia committing to IMF reforms and making political progress on conflict resolutions.
However, with the Tigray war now concluded, the EU announced the €680 million package will be released, highlighting Ethiopia's involvement in post-war reconciliation and aligned reforms.
Ethiopia welcomed the EU's decision to disburse the aid following the end of hostilities in Tigray and the country's commitment to economic overhauls. The allocation is expected to help Ethiopia rebuild from the devastating humanitarian and financial impacts of the conflict.