The Government of Ethiopia has signed a $1 billion financing agreement with the World Bank, the Ministry of Finance announced on Friday.
The deal was formalized by Ethiopia’s Finance Minister, Ahmed Shide, and Maryam Salim, the World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan.
In a statement issued today, the Ministry said that the funding, made up of both grants and concessional loans, is part of the Second Sustainable and Inclusive Growth Development Policy Operation (DPO), aimed at supporting the country’s ongoing economic reforms and development efforts.
The Ministry attributed the agreement to a reflection of the World Bank’s ongoing support for Ethiopia’s “ambitious and comprehensive reform agenda.”
Stabilizing the financial sector, increasing trade competitiveness, bolstering domestic revenue collection, and encouraging transparency and efficient governance are just a few of the initiatives that the program is meant to support, as stated in the statement.
Additionally, it seeks to guarantee the continuous provision of necessary social services.
“These are integral pillars of Ethiopia’s macroeconomic and structural transformation,” the Ministry said.
According to the Ministry, the agreement reaffirms the “strong and enduring collaboration” between Ethiopia and the World Bank as both parties work toward inclusive and sustainable development goals.
(Borkena)
