ADDIS ABABA – The World Bank’s Board of Executive Directors have approved $500 million funds in support of Ethiopia’s Homegrown Reform Agenda.
The newly approved fund will be availed to Ethiopia in the form of $250 million grant and $250 million credit.
The finance will fund the Second Ethiopia Growth and Competitiveness Development Policy Operation (DPO) which intends to accelerate Ethiopia’s economic growth and achieve its vision of becoming a lower-middle-income country.
The operation is the second of a series of DPOs and provides both financial and technical support to Ethiopia’s economic reforms, according to the Bank.
It is designed to help Ethiopia revitalize the economy by broadening the role of the private sector and attaining a more sustainable development path.
With support from the operation, the country has continued the implementation of reforms in the energy sector to improve efficiency and cost recovery, while protecting the poor.
The East African nation has also established the new telecom regulator, Ethiopian Communication Authority, and launched the process of consultation and issuance of two licenses to new firms, among others.
“This operation builds on the structural reforms initiated in 2018 and contributes to Ethiopia’s efforts to improve competitiveness, boost exports, generate jobs and accelerate inclusive growth,” said Miguel Martin, World Bank Task Team Leader for the Operation.
The Second Growth and Competitiveness DPO focuses on three pillars such as maximizing finance for development, improving the investment climate and developing the financial sector; and promoting transparency and accountability.
“The reforms implemented will help turn-around the electricity sector’s financial performance and support Ethiopia’s ambition to provide universal access to electricity,” said Mikul Bhatia, Senior Energy Specialist and Task Team Leader for the program