During President Emmanuel Macron’s visit to Ethiopia, Prime Minister Abiy Ahmed (PhD) announced that France has agreed to provide a €54.6 million loan aimed at bolstering Ethiopia’s energy sector and its national digitalization program.
 
Key Highlights of the Agreement:
Renewable and Sustainable Energy: The loan supports the implementation of integrated, renewable, and sustainable energy projects alongside digitalization initiatives.
 
Geothermal Roadmap: The two nations exchanged a new framework and roadmap for a 150 MW Geothermal Public-Private Partnership (PPP) project.
 
Infrastructure Modernization: The funding will be utilized to automate power substations, manage energy resources, and rehabilitate the National Grid Control Center.
 
Capacity Building: Part of the agreement focuses on enhancing technical training and institutional support for Ethiopian Electric Power (EEP).

Anticipated Impact:
Improved Access: The project is expected to improve electricity access for over 4 million people.
 
Reliability: It aims to reduce power outages by 50%.
 
Environmental Sustainability: The initiative targets a reduction in carbon emissions by 150,000 tons.
 
This loan is part of a broader €270 million program supported by the European Union, the French Development Agency (AFD), the European Investment Bank, and the French Treasury in collaboration with Ethiopian Electric Power. The project will be spearheaded by GE Vernova France and RTE International.