Franco-Ethiopian ties: Investment, reform support, and regional engagement

In a period marked by profound transformation and persistent challenges in Ethiopia and the wider Horn of Africa, France has remained a steadfast partner—supporting economic reforms, peacebuilding, and heritage preservation. In this exclusive interview, Capital’s Groum Abate sits down with Alexis Lamek, Ambassador of France to Ethiopia, to discuss the evolving relationship between the two nations. Ambassador Lamek reflects on the long history of Franco-Ethiopian ties, France’s commitment to Ethiopia’s homegrown reform agenda, and the country’s pivotal role in regional stability. From investment and development cooperation to peace processes and cultural heritage projects, the Ambassador offers candid insights into the opportunities and obstacles facing both countries as they navigate a rapidly changing regional and global landscape. Excerpts;

Capital: How do you view the current relations between France and Ethiopia? What are your priorities?

Ambassador Alexis Lamek: Our two countries have a long and rich history. I believe we were the second nation to establish diplomatic relations with Ethiopia nearly 130 years ago. I am here to continue this legacy and ensure we further strengthen our relationship. There are various fields in which we have been collaborating, and I want to continue our efforts in these areas. Our cooperation spans multiple sectors, including the economy, support for reforms in Ethiopia, cultural matters, heritage issues, governance, and assistance to civil society. I am eager to explore these opportunities further.

Capital: French companies have shown interest in investing in Ethiopia and have already made investments. How do you perceive the current investment landscape in the country, and how does the embassy facilitate these investments?

Alexis: Indeed, there are about 40 French companies operating here, some of which have been present for around 70 years, such as Total Energy, a major economic player in Ethiopia. These companies contribute significantly to the Ethiopian economy by creating jobs and generating wealth. However, we must acknowledge that there are challenges too. The business environment is not entirely conducive, and there are issues to address regarding business standards and the overall investment climate. This is why the French embassy is very interested in the ambitious macroeconomic reform agenda implemented in Ethiopia over the past few years. We support these efforts because they will ultimately benefit both the Ethiopian economy and investors looking to operate here. Ethiopia has great potential, and creating a more favorable investment environment is crucial for realizing that potential.

Capital: What are the main challenges for investors?

Alexis: France has recently become the most attractive country in Europe for foreign investment. However, this did not happen overnight; it required a significant effort from the government and public authorities. We engaged in dialogue with companies, listened to their concerns, and sought to understand what drives investment decisions—whether related to regulations, tax authorities, customs, or other factors that influence the investment climate.

The French government has invested considerable effort into listening to businesses and maintaining an open dialogue. As a result, we have emerged as the top destination in Europe for foreign investment over the past two years. I believe this approach is essential for any country seeking to attract investors.

Listening to them, ensuring they want to be here and are ready to invest their own money in the country, is essential. Since my arrival, I have been sharing our experiences with the Ethiopian authorities in this regard. I believe there is significant potential here that we should actively pursue to ensure it is fully realized.

This involves addressing issues related to taxation, transparency, and a clear understanding of the regulations. The rules must be clear, consistent, and well understood by everyone, including customs regulations and various other requirements. I strive to engage in this kind of dialogue with the authorities, and I am pleased to say that I have found counterparts who share a similar approach. We look forward to collaborating with them.

Capital: How does France plan to transition its engagement in Ethiopia from development assistance to partnerships?

Alexis: First of all, I must emphasize that our vision still aligns with the Sustainable Development Goals adopted ten years ago. These goals remain relevant and important today, even as some countries drift away from them. We, in France, believe they should continue to guide our work.

That said, our approach has evolved. We are focusing more on investment and responsible partnerships rather than a vertical relationship. We aim to establish a more horizontal, collaborative relationship that benefits both sides based on trust, ensuring that our efforts yield advantages for everyone involved. This means that the resources we allocate to Ethiopia’s development should benefit the people of this country while also supporting the French community and business sector.

We are aligned with the ongoing reform agenda in Ethiopia, known as the Homegrown Economic Reform, which began five or six years ago.

France has been involved from the very start; my president visited in 2019, and we decided to provide funding for the initial phase of this reform process, committing 100 million euros at that time. We are now entering the second phase and have already invested additional resources.

This reform agenda is compelling and operates within the framework of the IMF program. We believe its ambition to transform the economy and promote free enterprise is essential for Ethiopia’s growth.

It’s going to be a key element in developing Ethiopia’s economic potential. As far as we are concerned, we are accompanying this effort along two, actually three, lines.

The first is in our role as chair of the Paris Club, where we are currently collaborating with our Chinese counterparts to restructure Ethiopia’s debt. The discussions are progressing well, and we expect to reach an agreement and sign a memorandum of understanding within the next few months.

This restructuring is important because it will enable more Ethiopian resources to be dedicated to the country’s development. In terms of the financial aspect and the debt restructuring, we are doing our best to support Ethiopia.

The second element is the homegrown economic reform. In this context, we have allocated resources for budget support. Last calendar year, we provided over $25 million in grants to Ethiopia, and we are currently working on a second phase for this year and a third phase for the following year, which could total $150 million in budget assistance to help implement these reforms.

This is also a crucial element. As I mentioned, France is the only bilateral donor with such significant involvement in Ethiopia’s economic reform.

The third line of action involves providing technical expertise. We have a number of experts in France, and we are willing to share our experiences from our own reform processes. We can offer expertise in various areas, including the development of the private sector, reform of public companies, and the development of public-private partnerships.

Capital: You mentioned that the restructuring is in its final stage. Are you optimistic about its outcome?

Alexis: Yes, I am optimistic. There are some technical issues that need to be addressed, but the quality of the discussions—with our Chinese co-chair and with Ethiopia—has been progressing well. This is an important element, as it will trigger the next phase of the IMF program. Overall, things are moving in a positive direction.

Capital: How do you assess the progress of the macroeconomic reforms so far?

Alexis: I believe the political will is present, which is crucial—likely the most important element. The assessment made by the IMF is encouraging, although there are challenges that need to be addressed. Overall, the situation appears to be moving in a positive direction. Naturally, we must confront difficulties as they arise, which is typical for such an ambitious reform agenda. Nevertheless, we will continue to support this process, alongside France and the European Union and our partners, because we believe it will ultimately benefit everyone. Primarily, it will benefit Ethiopia, but in the end, it will benefit us all if this agenda is fully implemented.

Capital: France has been supportive of the Pretoria Agreement. How is France currently contributing to reconstruction projects and the peace process?

Alexis: We are involved in many areas to maximize the chances for the full implementation of the Pretoria Agreement, which we believe is essential for the future of this country.

In the aftermath of the war, our focus has been on rehabilitating the areas affected by the conflict especially in the field of agriculture, with support to people willing to resume farming activities, and of health. We have worked to restore hospitals in Dessie, Adwa, and Abala, among others, in regions impacted by the war.

We are also collaborating with the Red Cross and various NGOs to provide surgical care and address specific medical needs for the wounded and victims of sexual violence. Our aim is to support stabilization and mitigate the most severe consequences of this war.

In addition, we are politically supporting the Pretoria Agreement alongside other diplomats and ambassadors. We engage in discussions and exchanges with the parties involved to address tensions and difficulties, ensuring they are resolved so we can progress.

Transitional justice, for example, is a vital aspect of recovery after the conflict, as it will address accountability, which is essential for building a sustainable future.

I am genuinely impressed by the ambition of the transitional justice program here, as it tackles both truth-seeking and criminal accountability. I have been working with the president of the Supreme Court to explore how we can best support this process. It is going to be very important.

Capital: How do you assess the current situation in Tigray?

Alexis: I believe there is only one framework, which is the Pretoria Agreement, and it must be fully implemented. While there may be difficulties at times, the solutions are also outlined in the Pretoria Agreement. Although France is not one of the guarantors of the agreement, as a responsible member of the international community, we are committed to doing our best to ensure its success.

This is a key part of the discussions that France has with the signatories of the agreement and the African Union, which plays a vital role in steering progress in the right direction. Ultimately, what is necessary is for the region to remain peaceful so that we can address the urgent issue of internally displaced persons (IDPs). I have visited Tigray two or three times and have been deeply troubled by the conditions in which these IDPs live. It is a dramatic situation that requires immediate attention. I feel encouraged when I hear the leadership in Tigray express their commitment to resolving this issue quickly.

Capital: The Horn of Africa is currently in a state of war, particularly in South Sudan and Sudan. What role do you see for Ethiopia in stabilizing the region, and how can you assist?

Alexis: First and foremost, Ethiopia has a long history of engagement in peacekeeping, both globally and within the region. It is essential for Ethiopia to fully embrace this role. I believe Ethiopia is making significant efforts to assist those directly affected by the conflicts in Sudan and South Sudan. There is a substantial refugee community in Ethiopia, and it is important that these individuals are supported, in collaboration with the international community, including the UN and UNHCR.

We are here to help, but Ethiopia is not alone. We are actively addressing this crisis and will continue to do our utmost to support Ethiopia. For example, I recently learned from UNHCR that in the Gambela region, the number of refugees is nearly equal to that of the local population. I understand the gravity of this challenge. Again, Ethiopia is not alone; the rest of the world is here, committed to supporting the efforts to welcome these refugees, and we will do our best to accompany Ethiopia in this regard.

Capital: Can you tell us about current or future plans by AFD regarding infrastructure or other development projects? Do they have any upcoming initiatives?

Alexis: AFD, the Agence Française De Développement, is our operator for development and sustainable investment partnerships. There are many areas in which AFD, representing France, is involved. One particularly exciting and important area is the energy sector.

There is currently a signed project aimed at modernizing the electric grid in this country. Renovation and development of the electric grid are essential, especially considering that only 55% of Ethiopians have access to electricity. Despite Ethiopia’s remarkable potential for carbon-free energy, we will work closely with relevant Ethiopian entities to enhance the electric grid and expand access for more people in the country.

This initiative is being led by France in collaboration with the European Union, which is also providing funding alongside the European Investment Bank. This project is set to be one of the flagship initiatives of the Global Gateway, a significant European agenda focused on partnerships with specific African nations.

Capital: Do you have any new or ongoing projects in the cultural partnership? I know you have ongoing projects like Lalibela and the development of the new National Palace Museum. What is the current status of Lalibela and the National Museum? Are there any other ongoing projects?

Alexis: I would say that cooperation in the field of heritage has been one of the most visible aspects of our partnership with Ethiopia over the last few years. This collaboration began six years ago when my president visited and engaged in discussions with his Ethiopian counterparts. However, the history of our partnership goes back even further. We recently celebrated the 50th anniversary of the discovery of Lucy, our common ancestor, which was made during archaeological excavations conducted by a French-American-Ethiopian team in Ethiopia.

We have maintained a strong interest in working on culture, history, archaeology, and heritage in this country. Currently, there are two major projects. The first is the renovation of the National Palace, a remarkable historical site in the heart of Ethiopia that encapsulates the country’s rich history. We are proud to be involved in its restoration.

The initial inauguration took place last December, but the project is not yet fully completed. There are still access issues to finalize, and we will collaborate closely with our Ethiopian counterparts and the Ethiopian Heritage Authority to ensure the project is completed. Our goal is to transform it into a national museum that meets international standards and is open to the public, telling the story of Ethiopia. We have been working closely with the Palace of Versailles in France, which, in my view, is comparable in significance to our country’s history.

Regarding Lalibela, it has also been an area of extensive research and collaboration. We have nearly completed our first program there, called Sustainable Lalibela, which reflects our deep engagement in the region.

The purpose of our initiative was to improve the landscaping around the churches, electrify them, and address access issues. I take great pride in this program, even though I have not yet visited Lalibela, because it was a collaborative effort with the church and the local communities. We aimed to ensure that our work aligned with the needs and desires of the people there.

Currently, we are in the final stages of this project, but we are already planning a new program in Lalibela and beyond, called Sustainable Heritage. This program will focus not only on completing the work in Lalibela but also on initiatives in the Tigray region and the preservation of Muslim heritage alongside the churches.

I am particularly proud of our work with the churches. As a French citizen, this resonates with me, especially considering the challenges we have faced in addressing the restoration of one of France’s major churches, Notre Dame de Paris, which suffered a fire six years ago. We recently completed its renovation, inaugurated in December. I find it exciting that these two restoration processes—working with the UNESCO heritage sites in Lalibela and Notre Dame—are progressing simultaneously.

Capital: How does France view Ethiopia’s desire for access to the sea?

Alexis: When my president visited last December, he clearly stated that it is entirely legitimate for a landlocked country to seek diversified access to the sea. However, this must be done in full respect of international law and in consultation with neighboring countries. This approach is the most effective way to achieve results, and it must be pursued peacefully.

That said, we believe it is logical and legitimate for Ethiopia to address this issue. Let me assure you that we in Europe understand this challenge well, as our continent has many landlocked countries, and it is not insurmountable.

Over the years since the end of World War II, we have effectively addressed various issues through consultation, cooperation, and economic collaboration. Countries like Austria, the Czech Republic, and Luxembourg now have access to the sea through the ports of neighboring countries. This is a result of integrated economic cooperation that has transformed these challenges into non-issues.

I believe that the best way to tackle such matters is through dialogue and consultation with neighbors. We are more than willing to offer advice, support, and share our experiences in this regard, as I truly believe it is the most effective approach. Additionally, we support the Ankara statement, which was facilitated by Turkey last year, as a solid framework for addressing these issues.

Capital: How do you see the future of Ethiopian-France relations?

Alexis: I have touched upon several elements we are currently working on and will continue to pursue. There is significant potential for us to collaborate on implementing macroeconomic reforms that will benefit us all. Ethiopia’s potential, particularly concerning critical minerals and metals, remains largely untapped.

Ethiopia has a crucial role to play in this regard, and we are eager to support that. Additionally, there are many other areas where we can collaborate, particularly on global issues like climate change, which is an urgent challenge for all of us right now.

We also remain committed to supporting civil society and the press. Based on our own experience, we understand the importance of a thriving civil society and an independent press in a developing country. These elements foster accountability, which is essential for sustainable development. I firmly believe that this principle applies universally. We are actively working in these areas alongside our counterparts in the Ethiopian administration, and we are determined to continue this collaboration.

In the six months I have been here, I am continually impressed by the quality of the people I meet. I have even mentioned to my president that it feels as though there are no casting mistakes in Ethiopia. The individuals I encounter—whether in government, the business community, civil society, or the press—are all outstanding people. It appears they are here for a reason.

This is very encouraging for a country like France, which aims to be a partner to Ethiopia and support its progress. It’s inspiring to witness dedicated individuals—both men and women—who are committed to their country. This reinforces my belief in deepening our collaboration with Ethiopia.