Korea agency provides $20 million grant to Ethiopia

Korea’s international development agency known as KOICA has agreed to provide $20 million grant to Ethiopia in support of the east African country’s effort to achieve sustainable development.

An intent expression is signed today in Addis Ababa between the Government of Ethiopia and KOICA representative. The memorandum of understanding is signed with the objective of setting the framework for the implementation of KOICA’s 2022 grant program, which will further contribute towards achieving Ethiopia’s development endeavors based on the Ten Years Prospective Plan and Sustainable Development Goals, according to the press statement from the Ministry of Finance of Ethiopia.

KOICA will start two projects support from 2022 onwards with a total budget of 20 million USD. For each project 10,000,000 USD is allocated, according to KOICA Ethiopia Office’s, newly established country plan for support in Ethiopia.

“The first project will help enhancing the competitiveness of Leather and Leather products sector in Ethiopia by establishing well developed business incubation center with full pledged support services to the emerging and existing small and medium enterprises (SMEs) in different sectors, according to the statement

The sectors include leather and leather products sector cluster, increasing production, productivity and competitiveness of SMEs which will improve the export performance of the sector and developing well-established market and business linkages with in and out of the clusters.

The second project is intended for Community-Led Solution for Inclusive Socio-Economic Resilience towards Sustainable Peace in Conflict-Affected Areas in Ethiopia.

“The project contributes to enhancing social cohesion and economic resilience of displacement-affected communities through the area-based and community-based peace building and recovery processes and increased access to sustainable livelihoods,” the Ministry said.

The MoU was signed by Semereta Sewasew, State Minister of Ministry of Finance and H.E Mr. Lee Byunghwa, Country Director of KOICA Ethiopia Office.