Addis Ababa, February 11, 2026 (FMC) – Ethiopia and France have signed the first bilateral debt restructuring agreement between Ethiopia and a member of the Official Creditor Committee (OCC) under the G20 Common Framework.
The agreement was signed in Addis Ababa by Ethiopia’s Minister of Finance, Ahmed Shide, and France’s Minister Delegate for Europe and Foreign Affairs, Eléonore Caroit.
France serves as Co-Chair of the Official Creditor Committee. The bilateral agreement follows the Memorandum of Understanding reached in July 2025.
Alongside the debt restructuring agreement, France signed a new financing package totaling €81.5 million. The package includes €80 million in budget support for HGER 2.0 and a €1.5 million technical assistance grant. The financing builds on France’s earlier €100 million contribution during the first phase of Ethiopia’s reform program.
During the signing ceremony, Eléonore Caroit said the agreements reflect cooperation aligned with Ethiopia’s reform agenda and noted that the engagement contributes to the European Union’s Global Gateway strategy.
French development institutions, including Agence Française de Développement (AfD) and PROPARCO, continue to finance infrastructure projects in Ethiopia. The two sides agreed to explore French participation in the construction of Ethiopia’s new airport, a project aimed at enhancing connectivity and trade.
Caroit also highlighted the importance of maintaining a business environment conducive to investment to generate mutual economic benefits and sustain competitiveness.
Ahmed Shide expressed appreciation for France’s support and reaffirmed Ethiopia’s commitment to strengthening cooperation under the Global Gateway and Team Europe frameworks. He also noted alignment with broader regional priorities, including Horn of Africa initiatives supported by France and European partners.
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.
The two countries also continue cooperation in urban development, tourism and agriculture, it was mentioned.