The World Bank approved USD 1.2 billion in grants and loans to Ethiopia. According to a statement posted on the bank’s website, the funds, a USD 600 million grant and a USD 600 million loan, will be used to assist reforms in the financial sector including improving the investment climate.

The bank said that it had been providing new financial and technical assistance to Ethiopia in response to the reform pledges made by the government since Prime Minister Abiy Ahmed took office in April.

The support will promote public-private partnerships “to improve efficiency in key sectors” including telecom, power, and trade logistics, the bank said.

In these sectors, the bank said its support would also help the government “reduce inefficiencies and operating costs and improve financial performance” to help Ethiopia attract more foreign direct investment and raise export revenues.

Source: Reuters