Ethiopia has secured a $110 million financing package from the European Investment Bank (EIB) to strengthen rural financial access and support agricultural development across the country. The agreement, confirmed by Finance Minister Ahmed Shide, was reached following high-level meetings with senior officials from the EIB and the European Commission in Washington, D.C.

The funding will support the third phase of the Rural Financial Intermediation Programme (RUFIP III), a flagship initiative designed to enhance financial inclusion, improve access to credit for farmers, and drive Ethiopia’s wider agricultural transformation agenda. The programme aims to expand lending capacity for rural financial institutions and enable smallholder farmers and microenterprises to access affordable finance, ultimately stimulating sustainable growth in rural areas.

During the meetings, Minister Ahmed held discussions with Thouraya Triki, EIB Director for International Partnerships, and Marjeta Jäger, Deputy Director-General of the EU Directorate-General for International Partnerships, on the sidelines of the World Bank and IMF Annual Meetings. The talks focused on strengthening collaboration to advance Ethiopia’s economic reform programmes and boost rural livelihoods.

Minister Ahmed expressed appreciation for the EIB’s continued engagement in priority sectors such as finance for Small and Medium Enterprises (SMEs), Water, Sanitation, and Hygiene (WASH) projects, and women’s entrepreneurship development. He also highlighted upcoming opportunities for partnership under the Rural Inclusive and Sustainable Economic Development (RISED) Initiative and in manufacturing sector financing.

The discussions with the EU Commission also covered joint efforts to enhance regional infrastructure corridors, a critical part of Ethiopia’s long-term growth strategy. Both sides reaffirmed their shared commitment to deepening cooperation and supporting inclusive economic growth.

The $110 million deal represents a significant boost to Ethiopia’s efforts to expand rural access to finance and reflects growing confidence among European partners in the country’s ongoing economic reform trajectory.