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Home Economy

Ethiopia–Italy Strategic Partnership Deepens

Rome and Addis Ababa expand economic and energy cooperation

Fabio Scala, Cav OSI by Fabio Scala, Cav OSI
March 11, 2026
in Africa, Development, Economy, Energy, Ethiopia, FA, Infrastructure, Trade
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The Ethiopia–Italy strategic partnership is expanding as both countries deepen cooperation in infrastructure, energy and development initiatives shaping Ethiopia’s economic transformation.

 

Growing bilateral cooperation

Ethiopia and Italy are strengthening economic ties through a broader diplomatic and investment agenda. Leaders from both countries increasingly frame their engagement within the Ethiopia–Italy strategic partnership. This framework supports investment, infrastructure cooperation and long-term development collaboration.

Ethiopia’s ambassador to Italy, Demitu Hambisa, recently highlighted the growing importance of bilateral relations. She noted that the Ethiopia–Italy strategic partnership continues to gain momentum through sustained political dialogue and economic engagement. High-level visits and technical meetings have reinforced trust and opened new channels for cooperation.

In addition, both governments encourage private sector participation in development projects. Officials believe stronger partnerships can accelerate infrastructure delivery and technology transfer. The initiative also aligns with broader European interest in Africa’s emerging markets and industrial growth.

Energy and infrastructure partnerships

Energy cooperation remains a central pillar of the Ethiopia–Italy strategic partnership. Italian engineering firms have contributed to several major infrastructure developments in Ethiopia. These projects support power generation and strengthen national energy capacity.

One notable example is the involvement of Italian engineering company Webuild in constructing the Grand Ethiopian Renaissance Dam. This major hydropower facility will generate about 5,150 megawatts of electricity. The project will significantly expand Ethiopia’s domestic power supply.

Ethiopia plans to use this additional electricity to support industrial growth and expand energy access. The government also intends to export surplus electricity to neighbouring markets. These steps strengthen Ethiopia’s position as a regional energy hub in East Africa.

Mattei Plan and new investment prospects

Italy’s Mattei Plan for Africa also shapes the future of the Ethiopia–Italy strategic partnership. This initiative promotes stronger cooperation in energy, infrastructure and development finance across the continent. Ethiopia serves as one of the programme’s key partner countries.

Ethiopian officials expect the initiative to attract new investment and technical expertise. They also see opportunities for joint ventures in infrastructure and renewable energy. These investments can support Ethiopia’s long-term economic development strategy.

International institutions continue to support Ethiopia’s development priorities. Organisations such as the World Bank and the African Development Bank emphasise sustained investment in infrastructure and energy. Such support strengthens Ethiopia’s growth prospects and regional economic integration.

As cooperation deepens, policymakers see the Ethiopia–Italy strategic partnership as a bridge between Africa and Europe. Stronger collaboration can encourage investment, technology exchange and sustainable economic growth.

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Tags: africa economic diplomacyafrica europe partnershipAfrica infrastructure investmentAfrica investmentAfrica-Europe relationsAfrica-Europe tradeafrican development bankbilateral cooperationEast Africa developmentEast Africa economyenergy infrastructure AfricaEthiopiaEthiopia development strategyEthiopia economyethiopia electricity sectorethiopia energy exportsethiopia energy sectorEthiopia growthEthiopia infrastructureethiopia–italy strategic partnershipeuropean investment africafabio scalaGrand Ethiopian Renaissance Damhydropower Africainternational investment africaItalyitaly africa policyItaly-Africa cooperationmattei plan for africarenewable energy AfricaWEBUILDWorld Bank
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Fabio Scala, Cav OSI

Fabio Scala, Cav OSI

Fabio Scala is a strategic consultant and senior investment banker specialised in emerging & frontier markets with international experience across Africa, Europe, Asia and the Americas. He previously served as Strategic Advisor to the Minister of Economy and Finance of Mozambique and was Managing Director of a British family office focused on Southern Africa. He sits on the board of Uhusiano Capital and advises Digilogic, a pan-EU–Africa digital innovation network. In recognition of his contributions to strengthening Italy–Mozambique relations, he was awarded the title of Knight of the Italian Republic in 2024.

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