Italy commits €25 million to Ethiopia under Mattei Plan for job creation and economic growth
via The Reporter Ethiopia6 min read
Italy has committed 25 million euros to Ethiopia under its Mattei Plan to support job creation, economic growth, and sustainable development. This announcement coincides with the Big 5 Construct Ethiopia 2026 exhibition in Addis Ababa, where over 20 Italian companies are showcasing their operations. The initiative is part of Italy’s broader economic engagement with Ethiopia, where total Italian investment has reached approximately 830 million euros. Ethiopia is designated as a priority country under the Mattei Plan, which aims to strengthen cooperation with African countries through development projects and economic partnerships. The 25 million euro commitment targets employment generation and supports Ethiopia’s development goals through investments in construction, infrastructure, manufacturing, textiles, agro-processing, and services. Around 150 Italian companies currently have trade and investment ties with Ethiopian partners. Claudio Pasqualucci, trade commissioner at the embassy of Italy in Addis Ababa, noted that Italian investments have primarily focused on infrastructure, construction, and agro-industrial sectors, aligning with Ethiopia’s development priorities. He added that ongoing urban development and infrastructure expansion create opportunities for Italian firms to contribute to projects across the country, benefiting from Ethiopia's economic and fiscal reforms.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
Must ReadAmnesty International's latest global report, "The State of the World’s Human Rights," highlights significant human rights concerns in Ethiopia. The report cites forced evictions linked to urban development projects, including the government’s Corridor Development Project Ethiopia, where thousands were displaced with short notice and limited compensation. Authorities have since temporarily suspended parts of the project in Addis Ababa and pledged improved community engagement. Amnesty also noted restrictions on civic space, detailing arbitrary arrests of journalists and harassment of activists. Proposed amendments to civil society legislation are flagged for potentially limiting foreign funding and increasing executive oversight. The report also mentions the arrest of over 140 medical workers during nationwide strikes. In conflict-affected regions like Amhara and Oromia, violations persist, and the transitional justice process remains stalled, with no significant progress on accountability for crimes during the Tigray conflict. Women and girls continue to face gender-based and conflict-related sexual violence with limited access to justice. Concerns were also raised about the treatment of refugees, with at least 600 Eritrean refugees reportedly forcibly returned. The Ethiopian government has previously stated that development projects aim to improve infrastructure and living standards, and has pointed to ongoing reform efforts, including transitional justice measures.
This month, Ethiopian Airlines celebrates 80 years since its first commercial flight, and later this year, it will commemorate 64 years since ordering its first aircraft from Boeing. The two companies have maintained a strong relationship for over six decades, with Boeing jets forming a significant portion of Ethiopian Airlines' fleet. Boeing also opened an office in Addis Ababa last year. As Ethiopian Airlines develops a multi-billion dollar airport in Bishoftu, it plans to expand its fleet with 19 new Boeing jets, including nine 787 Dreamliners. Anbessie Yitbarek, Boeing's vice president of commercial sales and marketing for Africa, highlighted the long-standing partnership. He noted that Ethiopian Airlines was the first African airline to enter the jet age in 1962 with the Boeing 720B, and has consistently been among the first in Africa to introduce new Boeing aircraft, enabling its growth from a regional to a global carrier. Boeing's contributions include strategic partnerships, capacity building, and talent development, such as an MoU signed in 2019 to position Ethiopia as Africa's aviation hub, focusing on industrial development, advanced training, and leadership development. Boeing also collaborates with Cranfield University and Ethiopian Aviation University on training programs and community initiatives. Ethiopian Airlines' success is attributed to its consistent growth strategy, early adoption of advanced aircraft technology, and sustained investment in training and
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Must ReadThe European Union has announced the resumption of budget support to Ethiopia, more than five years after payments were suspended due to human rights concerns during the northern Ethiopia war. The EU will begin its budgetary support with 140 million Euro allocated for priority sectors, to be disbursed in three phases. Jozeph Sikela, EU commissioner for international partnership, disclosed this decision during the EU-Ethiopia Business Forum in Addis Ababa. The EU had initially suspended nearly 90 million euros in budgetary support for transport and health projects in December 2020, one month after fighting began in Tigray. The resumption of support follows ongoing reforms by the Ethiopian government and the EU's desire for further partnerships.