The Khalifa Fund for Enterprise Development (KEFD) of the United Arab Emirates signed a deal to loan $100 million to Ethiopia.

Signing the agreement in the Ethiopian capital Addis Ababa on Monday were Ahmed Shide, Ethiopia's Minister of Finance, and Hussain Jasem Al Nowais, KEFD's Chairman.

Mr. Ahmed on the occasion said the loan will be used to implement Ethiopia's homegrown economic reforms, encourage innovation and assist small and medium enterprises (SMEs), among others.

Mr. Al Nowais said the agreement serves to strengthen the existing trade, investment, and development cooperation ties between Ethiopia and the UAE. The loan agreement comes shortly after Ethiopian Prime Minister Abiy Ahmed held an official visit to the UAE.

In August last year, KEFD provided a $100 million financial assistance for job creation activities in Ethiopia.

Source: APA