Ethiopia Approves Investment Framework for Domestic Fertiliser Manufacturing Project

Minteesinot Niggusie

Ethiopia’s Council of Ministers has approved an investment incentive and protection agreement for a domestic urea fertiliser manufacturing and processing project, as the government moves to expand local production and reduce reliance on imports. The decision was taken at the council’s 54th regular session, where ministers reviewed the proposed framework aimed at improving the project’s financing conditions and investment attractiveness.

The agreement is intended to help the project meet lending requirements in developing markets and mobilise the capital needed for implementation. According to the government, the initiative is designed to strengthen domestic fertiliser production capacity, reduce foreign currency outlays associated with imports and support broader agricultural productivity objectives.

The Ministry of Finance is expected to sign and implement the agreement, paving the way for the project’s execution under the approved framework. Beyond the fertiliser project, the council also advanced a wider package of financial, legal and international measures.

It endorsed two external loan agreements worth a combined 190 million euros, to be forwarded to the House of Peoples’ Representatives. The first, valued at 80 million euros, is from the French Development Agency to support economic reform programmes. The second is a 110 million euros loan from the European Investment Bank aimed at improving rural financial access.

Ministers said both financing arrangements align with the country’s debt management framework. The federal cabinet also discussed and approved a draft proclamation on the protection of critical infrastructure from cyber threats.

The proposed law seeks to strengthen safeguards around government digital systems and essential services by identifying key assets and establishing a regulatory system to manage cyber risks. In addition, ministers reviewed a set of bilateral agreements with Vietnam, Russia, Eswatini, Angola, Bangladesh and Sierra Leone.

These cover visa exemptions for diplomatic and service passport holders, the establishment of a joint biological research centre, and expanded air service arrangements intended to broaden aviation cooperation and market access. The council also approved a regulation establishing the Ethiopia Fire and Other Emergency Services agency.

The new institution will be mandated to strengthen fire prevention and emergency response capacity, assess risks in development projects, and coordinate national disaster preparedness and response systems.