Ethiopia and Italy have signed a landmark agreement reinforcing their strategic development partnership and supporting Ethiopia’s macroeconomic reform agenda.
In a major milestone for Ethiopia’s economic recovery efforts, H.E. Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia, and H.E. Giancarlo Giorgetti, Minister of Economy and Finance of the Italian Republic, signed a bilateral debt restructuring agreement as part of the Official Creditor Committee (OCC) process under the G20 Common Framework.
Further, the Italian Ministry of Economy and Finance has agreed to finance Ethiopia’s development policy programme, to be co-financed with the World Bank’s budget support programme. This intervention will provide critical support to Ethiopia’s ongoing macroeconomic reform agenda.
Specifically, support will be directed towards the Koysha Hydropower Project, assisting efforts to close the remaining financing gap. The parties have also agreed to explore financing selected components of the Bishoftu Airport project through Italian financial institutions.
Both sides agreed to initiate technical discussions involving the Ethiopian Airlines Group, as well as financial and technical advisers, to further develop financing structures and modalities.
