Ethiopia, France Sign over 54 million Euro Deal to Modernize National Grid

Addis Ababa, May 13, 2026 — Ethiopia and France have signed a 54.6 million Euro concessional loan agreement aimed at digitalizing and modernizing Ethiopia’s national electricity transmission network.

Ethiopia’s Minister of Finance, Ahmed Shide, and France’s Minister for Europe and Foreign Affairs, Jean-Noël Barrot signed the agreement today in Addis Ababa.

The strategic investment, financed by the French Treasury, is intended to strengthen Ethiopia’s energy infrastructure through advanced digital technologies.

According to a statement issued by the French Embassy, the project will be implemented by GE Vernova France and RTE International in close collaboration with Ethiopian Electric Power.

The initiative will focus on automating substations, improving grid asset management, and enhancing maintenance systems and training capacity at the National Grid Control Centre.

The financing forms part of the 270 million Euro Renewable Integrated Sustainable Energy and Digitalization (RISED) programme, a flagship initiative under the European Union Global Gateway strategy.

According to the embassy, the programme is designed to support Ethiopia’s green and digital transition by building a more resilient and sustainable power grid.

The project is expected to expand electricity access to more than four million people while reducing the frequency and duration of power outages by 50 percent.

It is also projected to support Ethiopia’s climate ambitions by cutting an estimated 150,000 tonnes of carbon dioxide emissions annually and reducing energy losses through the modernization of ageing infrastructure.