U.S. Increases Support to Ethiopia for Economic Development, Health, and Education
July 7, 2005

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.

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Speaking at the signing ceremony (full text of speech may be found below), Ambassador Brazeal quoted President George W. 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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Remarks by Ambassador Aurelia E. Brazeal At the Signing Ceremony Obligating $38.9 Million
Ethiopian Ministry of Finance Economic Development
Thursday, July 7, 2005
(As Prepared for Delivery)



State Minister Mekonnen, Distinguished Guests, Members of the Press, Ladies and Gentlemen:

In recognition of Ethiopia’s importance to the United States, on behalf of the United States Government, I am pleased to sign these bilateral agreements, which together represent an additional $38.9 million (337 million birr) in grant assistance to Ethiopia.

These agreements testify to the continued long-lasting partnership between the U.S. and Ethiopia, based on a foundation of people-to-people relationships that began over a century ago. The agreements also serve as a reminder that both the United States Government and the Government of Ethiopia remain committed to supporting Ethiopia’s long-term development and the well-being of Ethiopia’s citizens.

In addition, we sign these grants at a time when the United States is demonstrating its support to Africa and its people in many ways, at the on-going G-8 meeting and including President Bush’s commitment, reaffirmed last week in advance of the G8 summit in Scotland, to double U.S. assistance to Africa by 2010. As the President said, “America is acting in these areas because we share with Africans, themselves, a vision of what the continent can become – a model of reform, a home to prosperous democracies, and a tribute to the strong spirit of the African peoples. This vision is necessary, realistic, and already on its way to achievement.”

The largest of the grants provided today, $16.2 million dollars (140 million birr), will help Ethiopia bolster private-sector economic growth, particularly in the food and agriculture sectors. In these programs, the U.S. Agency for International Development (USAID) promotes the development of commercial markets including domestic, regional, and international trade. In his speech last week, President Bush spoke eloquently on the crucial role economic development plays in today’s global economy. He said, “While aid and debt relief can create better conditions for development, it is trade that provides the engine for development. Economic development is not something we do for countries, it is something they achieve with us... Economic aid that expects little will achieve little. Economic aid that expects much can help to change the world.” Support such as that made possible here today is a sign that, as a partner to Ethiopia, we expect much of Ethiopia.

The second grant, of $12.6 million dollar (109 million birr), is for the health sector to help reduce vulnerability to disease, prevent the spread of infectious diseases, including TB and malaria, increase immunization coverage for children, and expand family planning services.

The third grant, of $10.1 million (88 million birr), is for the education sector. It will help Ethiopia improve its basic education system by increasing primary school enrollment, improving teacher training, and increasing the number of elementary school children who complete at least eight years of education. Our education program includes a focus on girls’ education.

In this regard I am pleased to announce today that as of September 2005 we expect to launch with the Ministry of Education a special girls’ scholarship program that will provide up to 1,000 scholarships to promising young Ethiopian women to attend high school. Once again, I can do no better than to quote President Bush, who has said, “Across the continent, there is a deep need for the empowerment of women, and that begins with education. Educated young women have lower rates of HIV/AIDS, healthier families, and higher rates of education for their own children.” Education is the key that opens doors to the future, and we are glad to be helping Ethiopia’s young people grab hold of that key.

We in the United States are very proud of our strong and lasting relationship with the people of Ethiopia. Both the U.S. Government and the Government of Ethiopia aim to enhance sustainable, private-sector led growth and development. We hope the Government of Ethiopia’s commitment in this regard will deepen and we will build on it and strengthen it in the future.

The May 15 Ethiopian elections immutably changed Ethiopia’s political landscape, broadened democratic horizons, and made the multi-party system a reality. 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.

Finally, I want to thank State Minister Mekonnen and his colleagues throughout the Government of Ethiopia. We both know that it takes the hard work of thousands of government workers on both sides to make our partnership work. Ato Makonnen, may I ask that you kindly extend to the numerous ministerial partners our sincere appreciation for their cooperation and support.

Thank you.

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- addisababa.usembassy.gov