Ethiopia has secured a $1 billion in fresh funding from the World Bank to support its ongoing economic reforms and development efforts, the country’s ministry of finance disclosed this weekend.
The ministry said a financing agreement both in the form of a grant and a concessional loan deal was signed by Finance Minister Ahmed Shide and Maryam Salim, the World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan.
The financing agreement, made under the Second Sustainable and Inclusive Growth Development Policy Operation, “reflects the Bank’s continued commitment to supporting Ethiopia’s bold and far-reaching reform agenda,” the ministry said.
According to the ministry, the funds will be used to support Ethiopia’s recent efforts to ensure financial sector stability, enhance trade competitiveness, strengthen domestic resource mobilisation, promote transparent and effective public sector governance, and ensure the sustainability of social services.
Stabilising 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.
“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.
MG/as/APA