Ethiopian Gov’t, World Bank ink $400mln grant agreement

Addis Ababa, July 26, 2023 (FBC) – The Government of the Federal Democratic Republic of Ethiopia and the World Bank Group have signed a Financing Agreement amounting to a total of 400 million US Dollars.

It is stated that the Ministry of Finance and the World Bank virtually signed a Financing Agreement amounting to a total of 400 million USD (approximately ETB 21.8 Billion) of which 350 million USD is in the form of grant and 50 million USD in the form of credit.

The proceeds from the Loan and Grant will be used to improve the learning outcomes and nutrition services for girls and boys and strengthen service delivery and accountability, in all regions including areas affected by conflict, droughts, and high levels of refugees, the Ministry of Finance stated.

The Ministry indicated that the Human Capital Operation consists of Program for Results (PforR) and Investment Project Financing (IPF) components. The PforR component is aimed to strengthen basic service delivery systems to mitigate the impact of the crises and improve learning outcomes and address stunting in selected Woredas, while the IPF part is designed to provide technical assistance and capacity building support for strengthening systems and delivery of quality services.

The Agreements was signed between Mr. Ahmed Shide, Minister, Ministry of Finance, and Mr. Ousmane Dione, World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan representing the Government of Ethiopia and the World Bank, respectively.

“Ethiopia continues to honor its commitment to prioritize human Capital Development and reaffirmed this commitment at the ongoing Africa Heads of State Human Capital Summit in Dar es Salaam Tanzania July 25-26, 2023”, the Ministry reiterated.