Ethiopia Participates in 4th International Conference on Financing for Development in Spain
Addis Ababa/Madrid
Ethiopia is taking part in the 4th International Conference on Financing for Development (FfD) held in Madrid, Spain, from July 1–5, 2025, joining global leaders to discuss sustainable economic growth, climate finance, and debt relief for developing nations.
The Ethiopian delegation, led by Finance Minister Ahmed Shide, is advocating for increased development financing, foreign investment, and climate resilience funding to support the country’s economic transformation.
Key Objectives of Ethiopia’s Participation
1. Attracting Investment for Development Projects
Ethiopia is seeking international funding and public-private partnerships (PPPs)for critical infrastructure, including:
– Transport & Energy: Expanding roads, railways, and renewable energy projects.
– Industrial Parks: Boosting manufacturing and job creation.
– Digital Economy: Enhancing tech and startup ecosystems.
2. Addressing Debt Challenges
With Ethiopia restructuring its $28+ billion external debt, discussions will focus on:
– Debt relief under the G20 Common Framework.
– New concessional loans from the IMF and World Bank.
– Debt for climate swaps to ease financial burdens while funding green projects.
3. Climate Finance & Green Growth
As a climate-vulnerable nation, Ethiopia is pushing for:
– More climate adaptation funds from developed nations.
– Support for the Green Legacy Initiative (billion-tree campaign).
– Renewable energy investments, including hydro, solar, and wind power.
Ethiopia’s Message at the Conference
Finance Minister Ahmed Shide stated:
“Ethiopia is committed to sustainable development, but we need fairer global financial systems. Debt relief, climate finance, and private sector investments are crucial for our growth.”
The delegation will also hold bilateral meetings with representatives from the EU, China, UAE, and the US to secure new financing deals.
Why This Conference Matters for Ethiopia?
– Post-war recovery:After the 2020–2022 conflict , Ethiopia needs funds to rebuild.
– Drought & food security: Over 20 million Ethiopians need aid due to climate shocks.
– Economic reforms:The government is liberalizing key sectors (telecoms, banking) to attract investors.
Global Context: Financing for Development Challenges
The FfD Conference comes as developing nations struggle with:
✔Rising debt crises(60+ countries at high risk of default).
✔ Shortfalls in climate finance (developed nations missed $100B/year pledge).
✔ Declining foreign aid due to global economic slowdowns.
Ethiopia’s participation highlights its push for fairer financial systems to achieve the UN Sustainable Development Goals (SDGs).
