Ethiopia Signs 1.5 Billion USD Support with World Bank
The Ministry of Finance disclosed that Ethiopia has signed 1.5 billion US dollars support today with the Wold Bank.
In its press release, the ministry said ‘We are pleased to announce a significant reinforcement of its long-standing partnership with the World Bank.’
A new financial package, through the First Sustainable and Inclusive Growth Development Policy Operation, has been agreed upon, consisting of a 1 billion USD grant and a 500 million USD loan, 1.5 billion USD in total aimed at bolstering the ongoing economic reform initiatives of the Ethiopian government.
The release added that this substantial support from the World Bank, which is phase one, is a testament to the depth of our enduring alliance and shared commitment to Ethiopia’s development aspirations.
Since becoming a founding member of the World Bank, Ethiopia has benefited from the Bank’s unwavering support, which has spanned various administrations and developmental phases. The past five years have seen a remarkable intensification of thi
s support, making the World Bank the largest source of development finance.
Currently, Ethiopia accesses over 2 billion USD annually in concessional financing from IDA, with half of this amount provided as grants.
The World Bank’s portfolio in Ethiopia is now around USD 15.5 billion, with 7 billion USD ready for disbursement. Additionally, the International Finance Corporation (IFC) maintains an investment portfolio in Ethiopia valued at 319 million USD. On another hand, the Multilateral Investment Guarantee Agency (MIGA) is actively engaged with 1.15 billion USD in guarantees mainly covering the telecommunications sector and is expected to grow over the coming years
‘The Government of Ethiopia extends its profound gratitude to the World Bank for its continued support, which has been instrumental in supporting Ethiopia’s ambitious homegrown reform program and development endeavors. This partnership is pivotal in our collective pursuit of sustainable development and poverty alleviation’ said H.E. Ato Ahmed
Shide, Minister, Ministry of Finance.
The Agreements were signed between Ahmed Shide, Minister, Ministry of Finance, and Ms. Maryam Salim, World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan representing the Government of Ethiopia and the World Bank, respectively.
Source: Ethiopian News Agency