Ethiopia and Italy Sign Landmark Debt Restructuring Deal Under G20 Common Framework

EBR_News Mar 18, 2026

Ethiopia and Italy have signed a bilateral debt restructuring agreement in Rome, marking a significant milestone in Ethiopia’s efforts to restore debt sustainability under the G20 Common Framework and reinforcing the strategic partnership between the two nations, according to a joint announcement from the Ministries of Finance of both countries.

The agreement was formalized by Ethiopia’s Finance Minister Ahmed Shide and Italy’s Minister of Economy and Finance Giancarlo Giorgetti as part of the Official Creditor Committee (OCC) process. The deal represents the culmination of negotiations following the Memorandum of Understanding reached with official creditors in July 2025.

Ahmed expressed appreciation for Italy’s “constructive engagement and leadership,” noting its pivotal role in securing the broader OCC agreement and bringing the bilateral deal to conclusion. The agreement aligns with Ethiopia’s macroeconomic reform priorities while contributing to Italy’s Mattei Plan for Africa, under which Ethiopia is designated as a key partner country.

The signing follows the second Italy-Africa Summit held in Addis Ababa in February 2026, the first such summit convened on African soil. At that gathering, Prime Minister Giorgia Meloni emphasized that the Mattei Plan represents “Italy’s contribution to Africa’s agenda,” focusing on investment-led cooperation across infrastructure, agriculture, health, education, and energy sectors.

Ethiopia’s selection as a priority partner under the Mattei Plan reflects what officials describe as a dynamic and forward-looking alliance. Italian companies, including Webuild, have played significant roles in major infrastructure projects such as the Grand Ethiopian Renaissance Dam and the Koysha hydropower project.

In February Ethiopia have also signed a bilateral debt restructuring agreement with and France, first between Ethiopia and a member of the Official Creditor Committee under the G20 Common Framework alongside a new USD 96.1 million financing package to support the country’s macroeconomic reforms.

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