World Bank to provide $550 million to Ethiopia

The World Bank Group has approved $550 million grant and loan to Ethiopia. The funding approved last week aims to improve the livelihoods of pastoralists and the nation’s ongoing power sector reforms.

The Bank stated that $350 million ($70m grant $280m credit) was secured from the International Development Association (IDA). It will be used to improve the livelihoods and resilience of 2.5 million pastoralists and agro-pastoralists in low land areas. While The $200m Renewable Energy Guarantees Program (REGREP) approved by the bank will support Ethiopia’s ongoing power sector reforms and leverage private sector financing for renewable energy generation.

“The project will put communities in charge of their own development priorities by enabling them to identify, lead and manage local development initiatives,” said Carolyn Turk, World Bank Country Director for Ethiopia, Sudan and South Sudan.

The project will reduce long-term environmental degradation and communities’ vulnerability to climate change related droughts. It will also facilitate access to crucial social services such water resources to communities, upgrade veterinary facilities and help construct key infrastructure such as bridges roads, livestock markets, small scale irrigation schemes.

The project will support the introduction of technologies that improve animal productivity (i.e. milk and meat production). Furthermore, it will improve market linkages and commercialization by facilitating the development of partnerships between private companies and groups of producers.