The United States has committed more than one billion US dollars in grant financing to support Ethiopia’s health sector under a five-year memorandum of understanding signed on Tuesday.

The memorandum of understanding was signed on December 23, 2025, at the Ministry of Finance in Addis Ababa by Ahmed Shide, Ethiopia’s minister of finance, Mekdes Daba, minister of health, and Ervin Massinga, the United States ambassador.

Under the agreement, the United States will provide up to 1.016 billion US dollars in grant financing, with an additional 150 million US dollars to be disbursed based on performance. Ethiopian officials said the funding will be aligned with nationally defined health priorities and implementation mechanisms.

Ethiopia has committed up to 450 million US dollars in co-financing over the duration of the agreement, alongside policy leadership and oversight. Combined, the commitments place the total value of the memorandum at about 1.6 billion US dollars.

Both governments said the agreement builds on decades of cooperation in the health sector and is intended to support sustainable service delivery while addressing current and emerging health challenges.