The following press release was issued by the Department for International Development of the Government of the United Kingdom.

"It has been a privilege to visit Ethiopia for the first time. Over three days - two of which I have spent travelling around different parts of the country - I have seen at first hand the sheer enormity of the problems faced by the people; a lack of food, HIV/AIDS, and the need to make education and health services more widely available and accessible. I have also talked to Prime Minister Meles and other members of the government about their plans to address these problems, as well as to senior figures in the African Union and the Economic Commission for Africa. 

I have been struck during my visit by the profound challenges which Ethiopia and its 70 million people face in making progress towards the internationally agreed millennium development goals. But I also believe that there is now a real opportunity to move forward. I have seen the efforts being made by government, local community organisations and civil society, and I believe that the time is now right for the international community to play a much larger role, and to shift the focus of its support decisively from short term humanitarian assistance, to long term development assistance. 

This is exactly what the UK intends to do. We will now be significantly increasing our development programme in Ethiopia, which will rise from its current annual level of £19 million ($ 34 million) to £57 million ($100 million) in the UK financial year 2005/06. This will include substantial direct budget support. We are also looking at how we can support the Ethiopian government's own plans to tackle food insecurity over the medium term.

At the same time, I am acutely conscious of the need to respond to immediate humanitarian needs. This year, despite the good harvest, some 7 million people will still need support to stay alive. The reason is not a shortage of food in Ethiopia as a whole; it is poverty. I have therefore agreed today to provide immediate further support of £10 million ($18 million). Half of this will be in the form either of locally purchased food aid or cash transfers to those most in need. The other half will go to help meet other needs, including water, sanitation and health, and will be channelled through UNICEF and ICRC.

Continued peace and stability in the region is, of course, the foundation for the Ethiopian government's plans to reduce poverty, and for our own increasing development programme. I discussed the decision of the Boundary Commission with Prime Minister Meles, and set out the UK's view that the Commission's decision must be final and binding. We also recognise the importance of a wider political dialogue to improving the relationship between Ethiopia and Eritrea. This is of course primarily for the parties themselves to resolve, but we and other members of the international community, are ready to help. 

Development is not just about aid, however. I recognise the heavy debt burden faced by Ethiopia, and the UK will work for topping up of the current level of debt relief at HIPC completion point. Economic growth and trade are also important, and we welcome Ethiopia's application to join the WTO and the steps that it is taking to encourage a more active private sector. We will continue to work for a multilateral trading system that will benefit both Ethiopia, and other developing countries.

Finally, an important part of reform is progress on human rights and governance. The Prime Minister told me of his commitment to this and it will be important for the people to see this happen.

Progress in improving the lives of the people of Ethiopia is essential if Africa is to meet the Millennium Development Goals. This country is one very important reason why Africa is a personal priority both of mine and of the UK Prime Minister Tony Blair. And it is why we have promised to put Africa at the heart of our presidencies of both the G8 and the EU in 2005."

Background Notes

1. Hilary Benn was in Ethiopia between 9-11 February.

2. DFID launched its Country Assistance Plan (CAP) for Ethiopia in March 2003. This plan describes how DFID intends to help reduce poverty in Ethiopia based around the Ethiopian Government's own Poverty Reduction Strategy. 

3. The four priorities for DFID's work in Ethiopia are food security, education, capacity building and HIV/AIDS. DFID is also working with Government and civil society to tackle political governance and human rights issues.

4. In addition to the CAP, the UK and Government of Ethiopia signed a ten year Memorandum of Understanding (MoU). This provides an overarching framework for a long-term partnership - with the purpose of building trust by improving transparency of mutual expectations. For example, UK commitments include support to donor harmonisation and Government of Ethiopia commitments include prudent economic management and democratisation.

5. DFID has provided £50 million in humanitarian aid to Ethiopia since 2002, it has provided over £21 million in development support since 1998 and a further £10 million in budget support (in 2003).

ENDS