Ethiopia, World Bank sign $ 250m financing agreement

Addis Ababa, June 18, 2020 (FBC) – Ethiopia and the World Bank today signed a financing agreement amounting $ 250 million in support of supplemental financing to the second Ethiopia growth and competitiveness programmatic development policy financing.

The agreement was signed by Ahmed Shide, Ethiopia’s Minister of Finance and Carolyn Turk, World Bank Country Director for Ethiopia, Eritrea, Sudan and South Sudan.

Out of the total financing, $125 million is in the form of credit, while the remaining $125 million is a grant, according to a press release Ministry of Finance sent to FBC today.

“This operation that is provided in the form of budget support aims at boosting economic transformation by increasing private sector participation and promoting good governance practices,” it said.

“Overall, it targets to assist the on-going reform and transformation efforts in Ethiopia as well as the implementation of the recently approved Home-grown Economic Reform Agenda, it added.

The supplemental budget support will help the Ethiopia to quickly close the current financing gap due to the COVID-19 pandemic and minimize the impact of the crisis on continued implementation of the reform agenda.