Ethiopia and France have signed a landmark debt restructuring agreement and a new €81.5 million financing package, deepening bilateral ties and reinforcing support for Ethiopia’s ongoing macroeconomic reforms.
The agreements were formalized in Addis Ababa by Ethiopia’s Minister of Finance Ahmed Shide and France’s Minister Delegate for Europe and Foreign Affairs, Eléonore Caroit.
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In a significant breakthrough for Ethiopia’s economic recovery, the two countries concluded the first bilateral debt restructuring agreement between Ethiopia and a member of the Official Creditor Committee (OCC) under the G20 Common Framework. France serves as Co-Chair of the OCC and played a central role in advancing negotiations that led to the July 2025 Memorandum of Understanding and the final bilateral deal.
Alongside the debt restructuring, France committed €80 million in budget support for Ethiopia’s Homegrown Economic Reform (HGER 2.0) program, as well as a €1.5 million technical assistance grant. The latest package follows France’s earlier €100 million contribution during the first phase of Ethiopia’s reform agenda.
Speaking at the signing ceremony, Caroit described the agreements as a reflection of the long-standing EU–Ethiopia partnership, emphasizing shared values and a joint commitment to sustainable development. She noted that the cooperation aligns with Ethiopia’s reform priorities and the European Union’s Global Gateway strategy.
French development institutions, including Agence Française de Développement (AfD) and PROPARCO, remain active in financing infrastructure projects in Ethiopia. The two sides also agreed to explore potential French participation in the construction of Ethiopia’s planned new airport, a project expected to boost connectivity, trade, and investment.
Caroit stressed the importance of maintaining a dynamic and investor-friendly business climate to ensure sustainable growth and mutual economic benefits.
Minister Ahmed Shide welcomed France’s continued support and reaffirmed Ethiopia’s commitment to strengthening collaboration under the Global Gateway and Team Europe frameworks. He also highlighted alignment with broader regional initiatives in the Horn of Africa backed by France and the European Union.
The Ethio-French partnership now exceeds €600 million in total investments, with more than €300 million directed toward the energy sector to support the expansion and modernization of Ethiopia’s power infrastructure. Cooperation also extends to urban development, tourism, and agriculture, reflecting a broad-based partnership focused on long-term, sustainable growth.
