Where do Ethiopia's foreign donors stand?

In recent days, the European Union, United Nations, and United States have all repeated the need for urgent, unimpeded humanitarian access to those affected by the conflict in northern Ethiopia. Jutta Urpilainen, EU commissioner for international partnerships, told the European Parliament on Thursday that the situation is “getting dangerously critical.” According to the U.N., a further 1.3 million people will require aid in the Tigray region, in addition to the almost 1 million in need prior to the conflict, which began in early November. In December, the EU postponed €88.5 million in budget support payments to the Ethiopian government and set a number of conditions for releasing the funds, including full humanitarian access in Tigray. But not all EU member states followed suit. Germany, for instance, is continuing its bilateral development cooperation with Prime Minister Abiy Ahmed’s government — though it has set its own conditions before sending more money. Aside from humanitarian aid, Devex asked international donors how the current conflict has affected their development assistance to Ethiopia. Here is a selection of their responses, edited for length and clarity. France “France, as a member of the European Union, fully supports [the EU] position [to postpone budget support], which it is defending before the Ethiopian authorities.” On Jan. 21, and repeatedly since then, Devex has asked whether France has postponed its own bilateral payments to Ethiopia and, if so, under what conditions? Devex has yet to receive a reply. The Netherlands “At the end of last year, [foreign trade and development] minister Sigrid Kaag decided to postpone payment of €2.8 million for programmes implemented by or with the Ethiopian government. “Re-evaluation of the payments will depend on positive developments in the area, which are constantly monitored by the Dutch government.” Italy Spokespeople did not respond to repeated requests for comment in recent weeks on the status of Italy’s bilateral assistance to Ethiopia. Spain “Spain is fully aligned with the EU concerning the situation of Ethiopia. “Spain does not provide budget support to Ethiopia, but we do provide bilateral aid to different Ethiopian Ministries. Along with other EU countries, Spain supports Ethiopian Ministries in the development of public policies. “These projects are currently ongoing and have not been suspended. We are currently planning our actions for 2021, and the current circumstances will be assessed.” United Kingdom “Unlike the EU, the UK does not provide general budget support to the Government of Ethiopia. Our financial aid is aligned to specific policy results to help those most in need. This is the most effective way to deliver development results. “Since the conflict broke out we have been keeping this support under close review. “We continue to raise the need for humanitarian access and restoration of basic services with senior officials in Ethiopia.” European Investment Bank “We have been [in] close contact with the European Commission services (DG-INTPA) on this since December. The EIB, as the EU bank, will follow any official decisions taken by the EU on this issue and will also align its practice to that of the EU in line with a common approach where Team Europe acts together to further EU policies and EU values. “Having said this, for the moment we are also still working on the preparation of the programme of the EU with Ethiopia, so the dialogue is on-going and we are discussing potential EIB finance for rural electrification and for health resilience in the country.” International Monetary Fund “We are focused on the response to the [COVID-19] pandemic and on supporting the government’s economic reforms under their 3-year Homegrown Economic Reform Program — to which the [Extended Credit Facility and Extended Fund Facility] are linked. We are also closely monitoring events in Ethiopia and hope for a peaceful resolution to the ongoing situation. “Fund staff continue to monitor the situation and gather information needed to assess the economic impact of the pandemic and the ongoing events. It is in this same regard that staff are also assessing the economic implications of the recent EU announcements. We take note of the EU decision to [postpone] their budget support which totals around 0.1 percent of GDP [gross domestic product].” World Bank “We are observing events in Ethiopia as they unfold, but as an institution focused on development and the elimination of poverty, our goal remains to improve the access and quality of services, build sustainable infrastructure, and move people out of poverty.” Devex asked on Jan. 22 and again on Jan. 26 whether the World Bank supported the EU’s move to postpone its €88.5 million in budget support and what measures the bank has taken itself. A spokesperson declined to comment. United States “USAID [the U.S. Agency for International Development] provides no direct financial support to the government of Ethiopia. The U.S. government continues foreign assistance programs that were funded prior to [a] temporary, partial pause [last year over the Grand Ethiopian Renaissance Dam dispute with Egypt and Sudan], including in health, education and programs to help farmers and small agribusinesses maintain productivity and generate incomes for their families. “We are also undertaking new programming in humanitarian assistance, HIV/AIDs and a few other select areas not impacted by the pause.”