Ethiopia France G20 Debt Restructuring Advances Economic Reform

Ethiopia and France have solidified their strategic partnership through a series of agreements aimed at supporting Ethiopia’s macroeconomic recovery and reform agenda, including a landmark bilateral debt restructuring deal.

The agreements were signed in Addis Ababa by Ethiopia’s Minister of Finance, Ahmed Shide, and France’s Minister Delegate for Europe and Foreign Affairs, Mme Eléonore Caroit. A central achievement is the first bilateral debt restructuring agreement between Ethiopia and a member of the Official Creditor Committee (OCC) under the G20 Common Framework. This follows the July 2025 Memorandum of Understanding reached with the OCC, which France co-chairs. Ethiopia’s Ministry of Foreign Affairs described the deal as a critical step in the nation’s external debt treatment process.

Alongside the debt accord, France announced a new €81.5 million financing package. This includes €80 million in direct budget support for Ethiopia’s Homegrown Economic Reform program (HGER 2.0) and a €1.5 million technical assistance grant. This new support complements an earlier €100 million French contribution to the first phase of Ethiopia’s reform program.

Mme Caroit highlighted that the cooperation aligns with both Ethiopia’s reform priorities and the European Union’s Global Gateway strategy, emphasizing a partnership based on mutual respect and sustainable development. French development agencies, including the Agence Française de Développement (AFD) and PROPARCO, are key players in Ethiopia’s infrastructure development. Both nations also agreed to explore French involvement in constructing Ethiopia’s new international airport, a project intended to boost trade and connectivity.

Minister Shide expressed gratitude for France’s “pivotal” and timely support, reaffirming a commitment to deepen collaboration under the Global Gateway and Team Europe frameworks to attract investment. He noted the partnership’s alignment with broader regional initiatives in the Horn of Africa.

The total Ethio-French partnership now exceeds €600 million, with over €300 million allocated to expanding and modernizing Ethiopia’s energy sector. Cooperation also extends to urban development, tourism, and agriculture, focusing on sustainable and inclusive growth. Both sides stressed the importance of a dynamic, investor-friendly business environment to enhance mutual economic benefits and Ethiopia’s competitiveness.

The agreements represent a significant infusion of financial and technical support for Ethiopia’s reform path, while positioning France as a leading partner within the G20 debt relief framework and the EU’s strategic vision for Africa.