Ethiopia Signs $1.72bln Financing Deals with World Bank

ADDIS ABABA – Ethiopia and the World Bank signed six financing agreements amounting 1.72 billion US dollars in the form of grants and credits.

The Ministry of Finance (MoFin) said the finance will fund the implementation of six projects aimed at driving sustainable development and inclusive growth.

The agreements were signed by Finance Minister Ahmed Shide and World Bank’s country Director Ousmane Dione on Friday.

The first $300 million grant deal signed today will finance a Rural Connectivity to Support Food Security Program.

The program aims to enhance climate-resilient accessibility to food markets and services in the country, along with strengthening institutional capacity for rural road management.

The second – $200 million – and third – $82.5 million – grant deals will support authorities to implement rural and safety net projects, respectively.

Authorities also secured an additional $275 million grant from the World Bank to finance the Second Urban Water Supply and Sanitation Project.

This project aims to increase access to water supply and sanitation services in Addis Ababa and selected secondary cities, per the MoFin.

The remaining two agreements concluded today will be received in the form of credit.

The biggest of the two would finance the first phase of a project on Power Sector Reform, Investment, and Modernization, with $522.63 million investment.

The $340 million credit deal, meanwhile, will fund the second phase of the Lowlands Livelihood Resilience Project.

The finance ministry says the project targets enhancing livelihoods and climate resilience for pastoral and agro pastoral communities in Ethiopia’s lowlands, per the MoFin.