Ethiopia-World Bank partnership pivotal for collective pursuit of sustainable dev’t – Finance Minister

Addis Ababa, July 30, 2024 (FBC) – Ethiopia’s Minister of Finance, Mr. Ahmed Shide, stated that the partnership between Ethiopia and the World Bank is instrumental in his country’s collective pursuit of sustainable development.

The Minister made this remark after the signing a 1.5 billion USD worth of support with the World Bank Group (WB), according to the Ministry of Finance.

Note that Ethiopia has signed a 1.5 billion USD worth of support with the World Bank Group (WB), cementing its long-standing partnership with WB, as stated by the Ministry on Tuesday evening.

“The Government of Ethiopia extends its profound gratitude to the World Bank for its continued support, which has been instrumental in supporting Ethiopia’s ambitious homegrown reform program and development endeavors. This partnership is pivotal in our collective pursuit of sustainable development and poverty alleviation” said Mr. Ahmed Shide, Ethiopia’ Minister of Finance.

The Agreements were signed between Mr. Ahmed Shide, Minister, Ministry of Finance, and Ms. Maryam Salim, World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan representing the Government of Ethiopia and the World Bank, respectively.

The Ministry reminded that a new financial package, through the First Sustainable and Inclusive Growth Development Policy Operation, has been agreed upon, consisting of a USD 1 billion grant and a USD 500 million loan, USD 1.5 billion in total aimed at bolstering the ongoing economic reform initiatives of the Ethiopian government.

This substantial support from the World Bank, which is Phase I, is a testament to the depth of our enduring alliance and shared commitment to Ethiopia’s development aspirations.

Since becoming a founding member of the World Bank, Ethiopia has benefited from the Bank’s unwavering support, which has spanned various administrations and developmental phases.

The past five years have seen a remarkable intensification of this support, making the World Bank the largest source of development finance. Currently, Ethiopia accesses over USD 2 billion annually in concessional financing from IDA, with half of this amount provided as grants.

The World Bank’s portfolio in Ethiopia is now around USD 15.5 billion, with USD 7 billion ready for disbursement. Additionally, the International Finance Corporation (IFC) maintains an investment portfolio in Ethiopia valued at USD 319 million.