The governments of Ethiopia and the United States have signed a Memorandum of Understanding (MoU) worth $1.616 billion to strengthen Ethiopias health sector over the next five years. The agreement, signed on Tuesday at the Ministry of Finance in Addis Ababa, marks a significant expansion of the long-standing health cooperation between the two nations, focusing on disease prevention and the resilience of public health systems.

Under the terms of the deal, the United States government has committed up to $1.016 billion in grant financing, with an additional $150 million available based on performance milestones. This funding is set to be channeled directly through the Ethiopian government system to support national health priorities. In a show of mutual commitment to the programmes sustainability, the Ethiopian government has pledged to provide up to $450 million in co-financing alongside policy leadership and oversight.

The agreement was formalised by Finance Minister Ahmed Shide, Health Minister Dr. Mekdes Daba, and the US Ambassador to Ethiopia, Ervin Massinga. During the ceremony, both sides highlighted that the partnership builds on decades of bilateral cooperation grounded in shared responsibility and the common goal of promoting sustainable development.

Officials stated that the multi-billion dollar investment demonstrates a shared resolve to address both current and emerging health challenges. The Ethiopian government reaffirmed its commitment to ensuring accountability and measurable impact, aimed at safeguarding public health for the benefit of the Ethiopian people.