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Addis Ababa, July 30, 2024 (Address) The World Bank (WB) Executive Directors approved a $1 billion grant and $500 million concessional credit from the International Development Association (IDA).
The financial program is Ethiopia’s first development policy initiative for sustainable and inclusive growth and will assist the homegrown economic reforms launched by Prime Minister Abiy Ahmed.
The financing program aims to increase the dominance of the private sector in the national economy by alleviating the main causes of macroeconomic imbalances and expanding trade activities.
Currently, Ethiopia receives $2 billion in concessional financing from the International Development Association each year, half of which is in the form of grants.
Currently, the World Bank’s total investment in Ethiopia is about US$15.5 billion, of which US$7 billion is ready. In addition, the International Finance Corporation (IFC) has a total investment of US$319 million in Ethiopia.
On the other hand, the Multilateral Investment Guarantee Agency (MIGA) was actively involved in providing guarantees of USD 1.15 billion, mainly covering the telecommunications sector, which is expected to grow in the coming years.
Receiving about $6 billion in support for budget and economic reforms over the next three fiscal years is another economic benefit for Ethiopia.
The World Bank press release further states, “Subject to Board approval of new operations and availability of IDA resources, this represents a total of more than $16.6 billion in outstanding and future commitments over the next three years.”
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