Ethiopia, France Deepen Strategic Partnership with Landmark Debt Restructuring and €81.5 Million Support Package

Addis Ababa, February 11, 2026 (ENA)—Ethiopia and France have strengthened their strategic development partnership with the signing of historic agreements that advance Ethiopia’s macroeconomic reform agenda and economic recovery efforts.

Ethiopia’s Minister of Finance, Ahmed Shide, and Mme Eléonore Caroit, French Minister Delegate for Europe and Foreign Affairs, formalized the agreements during a ceremony held in Addis Ababa.

In a major milestone, Ethiopia and France signed the first bilateral debt restructuring agreement between Ethiopia and a member of the Official Creditor Committee (OCC) under the G20 Common Framework.

In a press release sent to ENA, the Ministry of Foreign Affairs said the  agreement marks a significant step forward in Ethiopia’s external debt treatment process.

Minister Ahmed Shide commended France for its pivotal role as Co-Chair of the OCC, noting that its constructive leadership was instrumental in securing the July 2025 Memorandum of Understanding and finalizing the bilateral agreement.

Complementing the debt restructuring, France announced a new €81.5 million financing package, including €80 million in budget support for Ethiopia’s Homegrown Economic Reform (HGER 2.0) program and a €1.5 million technical assistance grant. The new support builds on France’s earlier €100 million contribution during the first phase of Ethiopia’s reform program.

Speaking at the ceremony, Mme Caroit highlighted the strength of the longstanding EU–Ethiopia partnership, describing the agreements as a testament to a relationship founded on mutual respect, shared values, and a common commitment to sustainable development.

She emphasized that the cooperation aligns with Ethiopia’s reform priorities 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 supporting Ethiopia’s infrastructure development. Both sides also agreed to explore potential French participation in the construction of Ethiopia’s new international airport, a transformative project expected to enhance connectivity, trade, and economic growth.

Mme Caroit underscored the importance of maintaining a dynamic and investor-friendly business environment to foster mutual economic benefits and sustain Ethiopia’s competitiveness.

Minister Ahmed Shide expressed Ethiopia’s appreciation for France’s continued and timely support, reaffirming the government’s commitment to deepening cooperation under the Global Gateway and Team Europe frameworks to unlock new investment opportunities.

He also highlighted alignment with broader regional initiatives in the Horn of Africa supported by France and the European community.

The Ethio-French partnership now exceeds €600 million in total investments, with more than €300 million directed toward expanding and modernizing Ethiopia’s energy sector.

Cooperation also spans urban development, tourism, and agriculture, further reinforcing a partnership centered on sustainable and inclusive growth.