Ethiopia and France signed a bilateral debt restructuring agreement on February 11, 2026, marking a crucial step in the economic recovery process of the second most populous country in Africa. This agreement, the first of its kind between Addis Ababa and a member of the Official Creditors Committee (OCC) within the G20 framework, comes after five years of complex negotiations and is accompanied by a new French financing plan of 81.5 million euros.
The agreement was signed in the Ethiopian capital by Finance Minister Ahmed Shide and French Minister Delegate for Europe and Foreign Affairs, Éléonore Caroit.
Ethiopia had requested a restructuring of its external debt under the G20 Common Framework in February 2021, a mechanism created to help over-indebted developing countries restructure their obligations. The country became one of the first to test this mechanism, alongside Chad and Zambia.
The situation worsened in December 2023 when Ethiopia defaulted on its one billion dollar eurobond issued in 2014. According to the International Monetary Fund (IMF), Ethiopia’s external debt is considered unsustainable, mainly due to prolonged exceedances of debt-to-export ratios.
During the signing ceremony, Éléonore Caroit emphasized the historic nature of this partnership: “These agreements reflect cooperation based on mutual respect and a shared commitment to sustainable growth. This support aligns with Ethiopia’s reform program and the European Union’s Global Gateway strategy.”
The Minister Delegate also stressed the importance of maintaining a dynamic business environment favorable to investors to ensure competitiveness and generate mutual economic benefits.
Ahmed Shide, on his part, expressed gratitude for what he described as “timely support from France” and reaffirmed Ethiopia’s commitment to deepen cooperation within the Global Gateway and Team Europe initiatives. He also noted alignment with broader regional priorities in the Horn of Africa, supported by France and the European community.
