The European Investment Bank (EIB) Tuesday announced the conclusion of a €110 million loan agreement with Ethiopia to support the implementation of the Rural Finance and Development Project, the finance ministry disclosed in a statement.
The loan will help finance micro-enterprises and small businesses and promote sustainable agricultural and economic practices across 11 regions of the country.
The Development Bank of Ethiopia is in charge of channeling funds to rural financial institutions, including microfinance institutions and cooperatives, the statement said.
The International Fund for Agricultural Development (IFAD) will co-finance the project with a $35.1 million grant and $4.8 million loan.
The European Union (EU) support also comprises of technical assistance grant worth €8.5 million and a separate grant of €8.26 million, implemented through IFAD
According to the finance ministry, the signing of the financing agreement shows a manifestation of the longstanding partnership between Ethiopia and the European Investment Bank.
The agreement was signed on Tuesday by finance minister Ahmed Shide and Diederick Zambon, the secor European Investment Bank’s Public Sector Division head.
MG/as/APA