ADDIS ABABA – Ethiopia and World Bank have signed today an 80 million USD agreement in the form of grants to support the east African nation’s flagship Agricultural Growth Program.
The World Bank Group’s Board of Executive Directors approved the grant on September 15, 2020 to in a bid to bolster agricultural productivity and enhance market access for Ethiopian smallholder farmers.
On Thursday, Finance minister Ahmed Shide, and Ousmane Dione, World Bank’s Country Director to Ethiopia signed the grant agreement. The government said the finance which will mainly prop up the Second Agricultural Growth Project (AGPII).
The bank said the project aims to increase the economic potential of Ethiopia’s agricultural sector which has been a key driver of poverty reduction over the past decade. The project will directly benefit 1.6 million smallholder farmers, who live in areas with the highest potential for agricultural growth.
Agriculture accounts for 45 percent Ethiopia’s total output and employs nearly 80 percent of the labor force.