Ethiopia and Italy have signed a bilateral debt restructuring agreement alongside commitments to support major infrastructure projects, including the completion of the Koysha Hydropower Project and selected components of the Bishoftu Airport.
The agreement was signed by Ethiopia’s Finance Minister, Ahmed Shide, and Italy’s Minister of Economy and Finance, Giancarlo Giorgetti. This move is part of the Official Creditor Committee (OCC) process under the G20 Common Framework.
During the signing ceremony, Ahmed Shide expressed appreciation for Italy’s constructive leadership, noting its pivotal role in reaching the July 2025 Memorandum of Understanding and finalizing this bilateral agreement. Minister Giorgetti stated that the deal aligns with Ethiopia’s macroeconomic reform agenda while advancing Italy’s Mattei Plan for Africa, in which Ethiopia is a primary partner.
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Italy also reaffirmed its commitment to the completion of the Koysha Hydropower Project, including efforts to bridge the remaining financing gap. Both sides acknowledged progress in securing new financing arrangements and agreed to finalize the remaining technical steps in the coming months.
Furthermore, the two nations discussed potential collaboration on the Bishoftu Airport project. Italy expressed readiness to support financing for selected components through its financial institutions. Both parties agreed to initiate technical discussions involving the Ethiopian Airlines Group and financial advisors to further develop the project’s financing structures.
