Ethiopia Secures Nearly 107bln Birr in Grant, Loan in a year

ADDIS ABABA – Ethiopia has secured nearly 107 billion birr (or nearly 3 billion US dollars) loan and grant from foreign sources to finance its development programs and projects, according to the Ministry of Finance.

The finance – 37.38 billion birr loan and 69.495 billion birr grant – have been obtained from multilateral and bilateral financial sources during the 2019/20 fiscal year, which ended on July 7.

The amount secured is 81.3 percent of the ministry’s target for the fiscal year, said Haji Ibsa, Public Relations Director of the Ministry of Finance.

The spokesperson has described the performance as “encouraging” while attributing the increase in flow of finance to raise in the country’s debt repayment and execution capacity of development projects, among others.

For the first time in the last couple of years, the external debt of Ethiopia, which is in high risk, has shown a quarter billion dollar decrease 

The total external debt at the end of 2018/19 budget year has been 27.029 billion US dollars but that is reduced to 26.778 million US dollars as of September 30, 2019, which is the end of the first quarter of the 2019/20 budget year, indicates government reports.

– Sources – 

From the total amount, the country secured 58.535 billion birr from multilateral sources in the form of loan (18.761 billion) and grant (39.774 billion) during the 2019/20 fiscal year.

The Ministry also said some 48.34 billion birr was secured from bilateral sources. This includes 18.619 billion birr loan and 29.721 billion birr grant.

World Bank, African Development Bank, European Investment Bank, European Union, United Nations, among others, included the multilateral sources.