ADDIS ABABA – Ethiopia and South Korea have signed a 32 million USD grant agreement that will finance three development projects in the East African nation.
State Minister of Finance, Yasmin Wohabrebbi and Korea International Cooperation Agency (KOICA) Country Director Kim Dong Ho signed the agreement amounting approximately 1,332,313,600 Birr in Addis Ababa on Tuesday.
According to the agreement, KOIKA will provide support to undertake three projects in Ethiopia for the coming five years starting from 2021.
The grant will finance a rural Agricultural Value Chain Improvement project through Linking Smallholder Farmers with Rural Transformation Center.
Its purpose, the ministry of finance said, is to reinforce the agricultural value chain in the Amhara region and accelerate the development of the rural economy through providing support.
A Climate Resilient Forest and Landscape Restoration effort which targets to benefit 11,100 households covering 55,000 local population is the other project KOICA supports with the grant.
It also finances the Watershed Development Master Plan Development for Addis Ababa City and Clearing upstream of Sheger River.
The project has a total budget of 10 million US dollars and will make significant contributions to beautifying the city, according to the Finance Ministry.
‘Biggest grant aid’
Ethiopia and South Korea have strengthened economic cooperation in recent times.
“The budget for the three projects is among the highest allocated budget compared with our past grant aid programs performance in the past years,” KOICA Country Director Kim said, adding KOICA will continue to enhance the socio-economic effort of the country in the upcoming years.
State Minister Yasmin, on her part, said the financial agreement signed today marks hard work and close coordination between the governments of Ethiopia and South Korea.
The existing cooperation between the countries is an indicative of the mutual respect “we have for one another, as well as our shared interest in creating a more sustainable partnership,” she added.
Ethiopia and Korea are currently implementing about 14 bilateral programs that are highly relevant for Ethiopia’s economy, according to KOICA.
Featured Image: The agreement was signed by State minister of Finance Yasmin (L) and KOICA’s Country Director Kim in a ceremony held in the Ministry of Finance’s headquarters in Addis Ababa on Tuesday morning