Ethiopia has signed its first bilateral debt restructuring agreement with France under the G20 Common Framework, a major step in Addis Ababa’s efforts to address external debt challenges and support ongoing economic reforms. The agreement was formalized in Addis Ababa by Ethiopia’s Minister of Finance, Ahmed Shide, and France’s Minister Delegate for Europe and Foreign Affairs, Eléonore Caroit, according to CNBC Africa.
The pact represents the first bilateral restructuring deal between Ethiopia and a member of the Official Creditor Committee (OCC) under the Common Framework, which coordinates debt treatment for countries in distress. France, as Co-Chair of the OCC, played a central role in the negotiations, which built on a Memorandum of Understanding signed in July 2025.
As part of the agreement, France has committed a €81.5 million financing package to support Ethiopia’s economic reforms. This includes €80 million in budget support for the Homegrown Economic Reform (HGER 2.0) programme and a €1.5 million technical assistance grant, supplementing previous French contributions of around €100 million under the first phase of the reform agenda.
Officials emphasized that the agreements strengthen bilateral cooperation and support Ethiopia’s macroeconomic stability and development goals. French development agencies, including Agence Française de Développement and PROPARCO, continue to fund infrastructure and priority projects, while both countries have signaled interest in further investment in major initiatives, including the construction of Ethiopia’s new international airport.
