July 7, 2005
No. 32/05 

U.S. Increases Support for Economic Development, Health, and Education

Addis Ababa (U.S. Embassy) – In recognition of Ethiopia’s importance to the United States and to regional stability as a critical anchor state, the United States, working through the U.S. Agency for International Development (USAID), is providing new funding totaling $38.9 million (337 million Birr) to assist the Ethiopian people in three key areas:  agricultural development, health care, and primary education.  On Thursday, July 7, U.S. Ambassador Aurelia E. Brazeal, State Minister of Finance and Economic Development Mekonnen Manyazewal and USAID Ethiopia Mission Director William Hammink signed three Bilateral Grant Agreements that support ongoing U.S.-Ethiopian partnership programs in every region of Ethiopia to reduce vulnerability to disease, improve the quality of education for children, and help end food insecurity, hunger, and poverty.  USAID funds are not Direct Budget Support, and will be disbursed for jointly-designed programs, closely accounted for, that support the people of Ethiopia.

Speaking at the signing ceremony, Ambassador Brazeal quoted President Bush, who said in advance of the G8 summit: “Economic aid that expects little will achieve little.  Economic aid that expects much can help to change the world.”  She added, “Support such as that made possible here today is a sign that, as a partner, we expect much of Ethiopia.”

One grant adds $16.2 million (140 million Birr) to existing and new programs that promote market-led economic growth, particularly in the food and agriculture sectors.  These programs promote private-sector agribusiness development and encourage commercial markets to play a fuller role in meeting Ethiopia’s food needs and income generation needs.

A second grant adds $12.6 million (109 million Birr) to a program aimed at improving Ethiopia’s health services and preventing the spread of infectious diseases, including tuberculosis and malaria.  These health programs will also expand child health through better immunization coverage and nutrition education and through strengthened family planning services.

A third grant provides an additional $10.1 million (88 million Birr) to improve the education quality and opportunities for Ethiopian children.  This program enhances teacher capacity, increases school materials that focus on girls’ education, strengthens parent involvement in school management, expands non-formal education for adults and children and helps to improve the planning and management of primary school systems at federal, regional and district levels.

In U.S. fiscal year 2005 (October 1, 2004 to September 30, 2005) the United States, though USAID, will provide over $100 million (866 million birr) in development assistance to Ethiopia.  In addition, the U.S. will provide 800,000 metric tons of food aid (estimated value of 3.46 billion birr or $400 million) in support of the Productive Safety Net program and to meet emergency food needs as part of President Bush’s Initiative on Humanitarian Emergencies in Africa.

The May 15 Ethiopian elections immutably changed Ethiopia’s political landscape and broadened the country’s democratic horizons.  While we support a peaceful resolution of election disputes and a peaceful conclusion to the election process, we believe all political parties in Ethiopia support U.S. assistance that benefits the Ethiopian people.

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