ADDIS ABABA – With the Grand Ethiopian Renaissance Dam (GERD) entering its final operational phases and a continued national drive for major infrastructure upgrades—spanning transport networks, energy grids, and industrial parks Ethiopias government is actively investigating alternative financing mechanisms. The goal is to sustainably manage debt levels while attracting diverse capital inflows essential for growth.

The colossal scale of projects like the GERD, combined with critical investments needed in roads, rail, and digital infrastructure to bolster the Homegrown Economic Reform Agenda, necessitates a strategic shift beyond traditional concessional loans and bilateral financing arrangements. While these sources remain important pillars, mounting concerns about national debt sustainability and a desire for greater fiscal autonomy are prompting officials to seriously consider options like robust public-private partnerships (PPPs), specialized domestic and international infrastructure bonds, and potentially tapping into climate-linked finance mechanisms such as green bonds for eligible renewable energy or sustainable transport projects.