Italy has committed to financing Ethiopia's Koysha Hydropower project and Bishoftu Airport development as part of an expanded bilateral partnership announced during the Ethiopia-Italy forum held in Rome.
The financing commitments were outlined during the forum, which brought together officials from both countries to discuss deepening economic cooperation under Italy's Mattei Plan for Africa, according to reports from Fana Broadcasting and AllAfrica Ethiopia.
The Koysha Hydropower project, located in the Southern Nations region, represents a significant addition to Ethiopia's power generation capacity as the country works to address chronic electricity shortages that have constrained industrial growth. The project is part of Ethiopia's broader strategy to develop its hydroelectric potential and achieve energy security.
The Bishoftu Airport project involves the development of aviation infrastructure in the town southeast of Addis Ababa, which could serve as an alternative to the capital's main Bole International Airport and support the government's plans to position Ethiopia as a regional aviation hub.
Both projects align with Italy's Mattei Plan, named after Enrico Mattei, the founder of Italian energy company ENI. The plan represents Italy's strategic approach to engagement with African countries, focusing on energy, infrastructure, and economic development partnerships rather than traditional aid models.
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The Rome forum discussions covered multiple sectors of cooperation, with infrastructure development emerging as a key area where Italian expertise and financing can support Ethiopia's development priorities. Italy has previously been involved in Ethiopian infrastructure projects, including road construction and industrial development initiatives.
For Ethiopia, the Italian commitments come as the country seeks to diversify its infrastructure financing sources beyond traditional partners like China and multilateral development banks. The government has been actively courting European investment as part of its economic reform program launched in 2024.
The partnership expansion reflects Italy's growing interest in the Horn of Africa region, where it sees opportunities to strengthen trade relationships and secure energy cooperation. Ethiopia's strategic location and large domestic market make it an attractive partner for Italian businesses looking to expand their African operations. The Mattei Plan framework provides a structure for long-term engagement that could extend beyond these initial infrastructure commitments to include trade facilitation and private sector partnerships.
