World Bank provides $500 million to Ethiopia

The Government of Ethiopia secured $500 million grant and loan from the World Bank. The World Bank’s Board of Executive Directors on Thursday approved the finance of which $250 million is grant, while $250 million is credit) from the International Development Association (IDA).

In its statement the World Bank stated that the money is provided in continued support of the Government of Ethiopia’s Homegrown Reform Agenda. “The Second Ethiopia Growth and Competitiveness Development Policy Operation (DPO) is intended to accelerate Ethiopia’s economic growth and achieve its vision of becoming a lower-middle-income country.”

“This operation is the second of a series of DPOs and provides both financial and technical support to Ethiopia’s economic reforms. The operation is designed to help Ethiopia revitalize the economy by broadening the role of the private sector and attaining a more sustainable development path,” the Bank said.

“This operation builds on the structural reforms initiated in 2018 and contributes to Ethiopia’s efforts to improve competitiveness, boost exports, generate jobs and accelerate inclusive growth,” said Miguel Eduardo Sanchez Martin, World Bank Task Team Leader for the Operation.

The Second Growth and Competitiveness DPO focuses on three pillars: maximizing finance for development, improving the investment climate and developing the financial sector; and promoting transparency and accountability. “The reforms implemented will help turn-around the electricity sector’s financial performance and support Ethiopia’s ambition to provide universal access to electricity,” said Mikul Bhatia, Senior Energy Specialist and Task Team Leader for the program.

The World Bank has been helping to fight poverty and improve living standards in Ethiopia, the Eastern African nation having one of the poorest people in the world with a per capita income of $790. The goals of World Bank assistances include promoting rapid economic growth and improving service delivery in the country. Ethiopia aims to reach lower-middle-income status by 2025.