World Bank

Ethiopia, World Bank Sign $200mln Loan Agreement

ADDIS ABABA – Ethiopia signed a 200 million dollars financing Agreement with the World Bank to support the Government’s Digitalization Program.

The ministry of finance said the Bank, through this agreement, committed a concessional loan of $200 million US dollars which approximately amounts to ETB 8.4 billion.

“The financing of this project will directly contribute to Ethiopia’s digitization strategy, which pursues an inclusive digital economy approach that will catalyze Ethiopia’s broader development vision set out in the Ten-Year Perspective Plan for Prosperity,” said Ahmed Shide, Minister of Finance of Ethiopia during the signing ceremony on Friday.

The project is expected to contribute to the job creation objective of the government especially within the tech industry.

The loan will finance three areas of the project, according to the agreement.

First, to strengthen the analog foundations of the digital economy, particularly policy-making, effective regulation for the telecommunications sector, and the development of digital entrepreneurship, the Ministry indicated.

The second, it said, is the development of the capacity of the Government to deliver digital services through connecting targeted public institutions and educational institutions to a broadband network.

“The third area is nurturing digital entrepreneurship and incentivizes digital businesses to train, provide digital devices, and mobilize Ethiopians to participate in the digital economy, and thereby generating income and jobs,” the ministry said

The agreement was signed between Finance Minister Ahmed and Ousmane Dione, World Bank’s Country Director for Ethiopia, Sudan, South Sudan, and Eritrea, in Addis Abeba on Friday.