WB pledges strong support to Ethiopia in form of grants, Highly concessional credits

Addis Ababa, April 15, 2023 (FBC) – World Bank (WB) President, Malpass emphasized the Bank’s strong support to Ethiopia, including budget support in the form of grants and highly concessional credits as the Government of Ethiopia is implements a robust reform program to restore macroeconomic stability and poverty reduction.

This was disclosed after the bank’s President David Malpass met with Ahmed Shide, Finance Minister of Ethiopia, ENA reported.

In his conversation with the Finance Minister Ahmed Shide, President Malpass discussed the progress achieved by Ethiopian authorities in the implementation of the November 2022 peace agreement.

resident Malpass emphasized the “World Bank Group’s strong support to Ethiopia, including budget support in the form of grants and highly concessional credits as the Government implements a robust reform program to restore macroeconomic stability and poverty reduction.”

President Malpass encouraged further steps toward durable peace and prosperity for all Ethiopians.

President Malpass and Minister Shide spoke extensively about the challenging global outlook for developing countries and Ethiopia’s urgent need to restore macroeconomic stability.

The President also emphasized the benefits of rapid and decisive policy reforms amid the challenging context of drought, internal conflicts, debt distress, and compounding structural challenges.

He further urged the government to remove macroeconomic distortions which will help slow inflation and unlock investment.

It is important to move away from a state-driven economic model, and to enhance the business enabling environment, allow for more competition in the financial sector, and facilitate private-sector led growth, Malpass stressed.

Noting slow progress in the implementation of the G20 Common Framework, President Malpass urged a rapid agreement of official bilateral and private sector creditors on a debt treatment for Ethiopia.