Ethiopian Prime Minister Abiy Ahmed’s recent visit to Italy marks a significant turning point in the diplomatic and economic relations between the two nations.
The FDRE Finance Minister Ahmed Shide announced that the discussions held in Rome have ushered in a new era of collaboration, focusing on economic reforms and investment opportunities.
During his visit, Prime Minister Abiy Ahmed engaged in fruitful talks with Italian Prime Minister Giorgia Meloni, resulting in a landmark agreement aimed at bolstering Ethiopia’s ongoing economic reforms. The two leaders emphasized the importance of fostering Italian investments in Ethiopia, highlighting the potential benefits of the economic changes currently underway in the East African nation, according to the Minister.
Minister Ahmed noted that the bilateral discussions not only centred on investment but also encompassed broader areas of cooperation.
“We agreed to continue strengthening the support of the Italian government to Ethiopia in development finance, reform, and energy,” he stated.
He indicated that this commitment reflects Italy’s willingness to play a pivotal role in Ethiopia's growth trajectory, particularly in sectors that are crucial for sustainable development.
A key outcome of the talks was the signing of a substantial 260 million euro long-term loan agreement between Ethiopia and Italy. This financial arrangement is expected to accelerate urban and green development initiatives within Ethiopia, aligning with the government’s vision for a more sustainable and resilient economy. The agreement underscores Italy's commitment to supporting Ethiopia through financial mechanisms that facilitate essential infrastructure projects and environmental sustainability efforts.
The discussions also highlighted the active involvement of Italian construction companies in renewable energy projects across Ethiopia.
Minister Ahmed pointed to significant contributions from these firms, particularly in major initiatives such as the Grand Ethiopian Renaissance Dam and the Gebe 4 and Koisha power plants.
These projects are vital for Ethiopia's energy independence and capacity building, showcasing the potential for further Italian investment in the sector.
In addition to formal agreements, Prime Minister Abiy Ahmed met with Pietro Salini, CEO of ‘We Build Group’, one of Italy’s leading construction firms. Their discussions focused on enhancing collaboration in infrastructure development, which is critical for Ethiopia’s ambitious growth plans. The engagement with Italian firms is seen as a strategic move to leverage foreign expertise and technology to accelerate local development.
As Ethiopia continues to navigate its economic reforms, the strengthened ties with Italy may serve as a model for future international partnerships. The commitment from both governments to enhance cooperation across various sectors is expected to yield mutual benefits, paving the way for a more prosperous future for both nations.
The significance of this visit cannot be understated; it represents not only a diplomatic success but also a concrete step towards economic revitalization for Ethiopia, which is poised to attract further investments as it embraces reformative policies, according to the Minister.