Ethiopia and Italy held a series of high-level ministerial meetings in Rome from 16 to 18 March 2026, covering debt restructuring, infrastructure financing, and broader bilateral cooperation. The Ethiopian delegation was led by H.E. Ahmed Shide, Minister of Finance, and included the Ambassador to Italy, Demitu Hambisa Bonsa, along with senior officials from the Ministry of Finance and the Ethiopian Airlines Group.
On 16 March, Minister Ahmed Shide met with Italy’s Deputy Minister of Foreign Affairs and International Cooperation, H.E. Edmondo Cirielli. The two sides discussed economic cooperation, development partnerships, the expansion of private sector investment, and regional stability and integration.
During the meeting, Minister Shide briefed on the progress of Ethiopia’s macroeconomic reform programme, highlighting efforts to strengthen macroeconomic stability, improve the investment climate, and support sustainable and inclusive economic growth.
Deputy Minister Cirielli commended Ethiopia’s leadership for delivering strong economic growth and acknowledged the country’s important role in promoting stability in the Horn of Africa. He emphasised, “Italy will continue to strengthen its engagement with Ethiopia through development cooperation initiatives and by encouraging greater participation of Italian private sector investors in the Ethiopian economy.”
Landmark Debt Restructuring Agreement Signed
On 18 March, Ethiopia and Italy formalised a bilateral debt restructuring agreement. The deal was signed by Minister Ahmed Shide and Giancarlo Giorgetti, Italian Minister of Economy and Finance, under the framework of the Official Creditor Committee (OCC) as part of the G20 Common Framework for debt treatment.
Speaking at the signing ceremony, Minister Shide praised Italy’s “constructive engagement and leadership”, noting its pivotal role in securing the Memorandum of Understanding reached in July 2025 and in bringing the bilateral agreement to fruition.
The Italian minister highlighted that the agreement aligns with Ethiopia’s macroeconomic reform priorities while also contributing to Italy’s Mattei Plan for Africa, under which Ethiopia is a key partner country.
The agreement is expected to strengthen investor confidence, unlock further international support, and accelerate Ethiopia’s path toward sustainable economic growth.
Koysha Hydropower and Bishoftu Airport
Separately, Minister Shide held talks with Minister Giorgetti on advancing bilateral economic collaboration and mobilising support for priority development projects. Italy reiterated its commitment to supporting the completion of the Koysha Hydropower Project, including efforts to help close the remaining financing gap. Both sides agreed to finalise the remaining steps in the coming months.
The discussions also explored potential collaboration on the Bishoftu Airport project. The Italian side commended the strong performance of Ethiopian Airlines and confirmed support for financing selected components of the project through its financial institutions. Both parties agreed to initiate technical discussions involving the Ethiopian Airlines Group, alongside financial and technical advisors, to develop financing structures and modalities.
Italy also agreed to finance Ethiopia’s development policy programme in coordination with the World Bank’s budget support, providing critical backing to the country’s ongoing macroeconomic reform agenda.
Both sides reaffirmed their shared commitment to further deepen the longstanding partnership between Ethiopia and Italy and agreed to continue working closely to advance mutually beneficial cooperation.
