The European Union has launched a €6 million initiative aimed at accelerating Ethiopia’s long-delayed participation in the African Continental Free Trade Area (AfCFTA), marking a major push to strengthen the country’s role in regional economic integration.
Dubbed ECOTRADE, the four-year programme was officially introduced in Addis Ababa on Friday, in the presence of senior Ethiopian officials, EU representatives, regional stakeholders, development partners, and private sector leaders.
According to a statement from the EU Delegation, the project is designed to support Ethiopia’s alignment with AfCFTA protocols and bolster the capacity of its private sector—especially small and medium-sized enterprises (SMEs) and women-led businesses.
It will also focus on improving trade policy, upgrading infrastructure, and enhancing value chain development to position Ethiopia more competitively within African markets.
“ECOTRADE is investing in people, in entrepreneurs, in women traders, in customs officials, in researchers and students, all of whom are agents of economic transformation,” said Sofie From-Emmesberger, EU Ambassador to Ethiopia.
The announcement follows Trade Minister Kassahun Gofe’s statement to lawmakers earlier this week that Ethiopia will officially commence trade under the AfCFTA next month—six years after ratifying the agreement.
Despite its promise, the AfCFTA has faced a sluggish rollout across the continent.
Although 55 countries are signatories and over 1.3 billion people fall under its economic umbrella, intra-African trade still accounts for just 14.4 percent of the continent’s total trade, according to a 2025 report by the UN Economic Commission for Africa (UNECA).
The majority—around 85 percent—of Africa’s exports, mostly raw materials, are still directed toward markets outside the continent.
The slow pace of implementation was a key focus at the AfCFTA experts’ committee meeting in Addis Ababa earlier this year.
Frustration over delays was palpable, with the outgoing committee chair remarking, “It just needs ratification but here we are, still talking about it.”
The ECOTRADE project seeks to change that narrative, helping Ethiopia become a meaningful player in what has been called the world’s largest free trade area.
If successful, it could offer a replicable model for other African nations grappling with similar hurdles.
About The Author
