Ethiopia and the United States on Tuesday signed a health cooperation memorandum of understanding worth $1.6 billion over a five-year period.

Under the agreement, the U.S. government has committed to providing $1.016 billion in financial assistance, along with an additional $150 million in performance-based funding. These funds will be channeled through government systems to support Ethiopia’s national health priorities over the coming years.

The Ethiopian government, for its part, will allocate an additional $450 million toward co-financing, policy leadership, and effective implementation to ensure the agreement’s sustainability, accountability, and measurable impact.

According to media reports citing government sources, the memorandum emphasizes sustainable development, joint financing, and measures aimed at making Ethiopia’s health services more resilient and efficient.

This partnership will focus on critical areas including HIV/AIDS, tuberculosis, malaria, maternal and child health, polio eradication, and preparedness for infectious disease outbreaks.