Ethiopia and the European Union have agreed to deepen cooperation in the renewable and sustainable energy sector, as Addis Ababa seeks greater external financing for its energy transition and economic reform agenda.

The agreement followed talks between Finance Minister Ahmed Shide and Myriam Ferran, Deputy Director General for International Partnerships at the European Commission, held on the sidelines of the 27th Horn of Africa Initiative ministerial meeting in Mogadishu.

According to Ethiopia’s Ministry of Finance, the discussions centred on strengthening bilateral cooperation in clean energy development, integrated infrastructure and long-term sustainability programmes.

Ahmed welcomed the European Union’s support, delivered in coordination with other development partners, for Ethiopia’s renewable, integrated and sustainable energy initiatives.

Ferran reaffirmed the European Commission’s commitment to finance the Ethio-Djibouti transport corridor, a flagship regional project aimed at improving trade flows and logistics connectivity in Eastern Africa.

The two sides also agreed on continued European Union backing for Ethiopia’s macroeconomic reform programme, which includes fiscal adjustment, foreign exchange reforms and efforts to stabilise growth, the ministry said.

Ethiopia is seeking to mobilise international capital to expand clean power generation and infrastructure investment as part of its strategy to support industrial development and regional integration.