Addis Ababa – In a milestone for Ethiopia’s economic recovery, Finance Minister Ahmed Shide and Italian Minister of Economy and Finance Giancarlo Giorgetti signed a landmark bilateral debt restructuring agreement in Rome today.
The deal, part of the G20 Common Framework, marks a critical step in Ethiopia’s efforts to stabilize its macroeconomy and signal its “open for business” status to global investors.
Beyond debt relief, the partnership has expanded into massive infrastructure commitments. Italy has officially pledged financing for the Koysha Hydropower Project and components of the ambitious Bishoftu Airport project, a flagship initiative for the Ethiopian Airlines Group.
The collaboration is a cornerstone of Italy’s “Mattei Plan” for Africa, which seeks to position Ethiopia as a primary strategic partner on the continent.
For Ethiopia, the agreement provides much-needed fiscal breathing room. The funds saved from debt servicing are expected to be redirected toward social sectors and the completion of the Koysha dam, which is vital for the country’s energy self-sufficiency.
Minister Shide emphasized that this move, coupled with World Bank budget support, will accelerate the nation’s ongoing economic reforms.
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