Ethiopia and France have solidified their ongoing economic partnership with the signing of a significant financial agreement aimed at advancing Ethiopia’s reform agenda. The agreement, concluded between Ethiopia’s Ministry of Finance and Agence Française de Développement (AFD), signals a critical step in supporting Ethiopia’s economic transformation through both budgetary and technical assistance.

The deal includes a USD27 million budget support package, with USD11.34 million already disbursed in December 2024, alongside a USD4.07 million grant for technical assistance. On December 21, 2024, Ethiopian Finance Minister H.E. Ahmed Shide and AFD CEO Rémy Rioux finalized the budget support agreement, while today’s technical assistance agreement was signed by State Minister of Finance H.E. Dr. Eyob Tekalign and AFD Country Director Mr. Louis-Antoine Souchet.

This agreement focuses on strengthening Ethiopia’s Homegrown Economic Reform (HGER) 2.0 through strategic reforms in key sectors. The technical assistance will be managed by the Ministry of Finance and the National Bank of Ethiopia, with a strong emphasis on financial sector reforms, restructuring State-Owned Enterprises (SOEs), refining Public-Private Partnership (PPP) regulatory frameworks, and implementing sectoral reforms across multiple agencies.

State Minister of Finance Dr. Eyob Tekalign expressed that this partnership represents a significant milestone in Ethiopia’s reform journey. He explained that while the budgetary support will provide vital fiscal space, the technical assistance would play a pivotal role in enhancing the country’s Public-Private Partnerships, improving governance within SOEs, increasing financial sector competitiveness, and strengthening institutional capacity for effective policy execution.

Dr. Eyob further acknowledged AFD’s ongoing support, highlighting the flexibility of the technical assistance program, which accommodates multiple partners and ensures value for money.

In a similar vein, Mr. Louis-Antoine Souchet, AFD’s Country Director, reaffirmed his institution’s commitment to Ethiopia’s reform agenda. He emphasized that this collaboration was a reflection of France’s sustained investment in Ethiopia’s economic sustainability and public sector efficiency. AFD, he added, would continue to foster peer-to-peer exchanges and knowledge-sharing between French and Ethiopian institutions, ensuring successful reform implementation and long-term economic resilience.