Ethiopia and France Solidify Strategic Partnership with Historic Debt Restructuring and €81.5 Million Economic Support Agreement

In a major milestone for Ethiopia’s economic recovery, the two countries signed the first bilateral debt restructuring agreement between Ethiopia and a member of the Official Creditor Committee (OCC) under the G20 Common Framework. Minister Ahmed Shide acknowledged France’s pivotal role as OCC Co-Chair, whose constructive leadership was instrumental in reaching the July 2025 Memorandum of Understanding and concluding the bilateral agreement.

Complementing the debt relief, France signed a new financing package consisting of €80 million in budget support for HGER 2.0 and a €1.5 million technical assistance grant. This builds on France’s earlier €100 million contribution during the first phase of the reform program.

During the ceremony, Mme Caroit underscored the importance of the long-standing EU–Ethiopia partnership, describing the agreements as a testament to a relationship grounded in mutual respect, shared values, and a joint commitment to sustainable growth. She noted that the cooperation aligns with Ethiopia’s reform agenda while contributing to the European Union’s Global Gateway strategy.

French development institutions, including Agence Française de Développement (AfD) and PROPARCO, continue to play a strategic role in Ethiopia’s infrastructure financing. The two sides agreed to explore French participation in the construction of Ethiopia’s new airport, a project expected to enhance connectivity and trade. Mme Caroit emphasized the importance of a dynamic and investor-friendly business climate to generate mutual economic benefits and sustain Ethiopia’s competitiveness.

Minister Ahmed Shide expressed Ethiopia’s appreciation for France’s timely support and reaffirmed the country’s commitment to deepening cooperation under the Global Gateway and Team Europe frameworks to unlock new investment opportunities. He also noted alignment with broader regional priorities, including Horn of Africa initiatives supported by France and the European community.

The Ethio-French partnership now exceeds €600 million in total investments, with more than €300 million directed to the energy sector to expand and modernize Ethiopia’s power infrastructure.

Cooperation continues across urban development, tourism, and agriculture, further strengthening a partnership focused on sustainable growth.