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Ethiopia: World Bank, Ethiopia Ink USD 165 Million Financing Agreement

mof logoSemerita Sewasew, State Minister for Economic Cooperation of the Ministry of Finance, and the representative of the World Bank’s Green Climate Fund (GCF), Asaye Legesse, signed a USD 165.2 million grant and loan agreement for the implementation of a sustainable land management program that reduces land degradation and improves productivity.

It is reported that the sustainable land management program will be implemented in 170 districts and 217 watersheds benefitting 4 million families across Amhara, Oromia, Tigray, Southern Nations and Peoples, Southwest Ethiopia, Sidama, Benishangul Gumuz and Gambella Regional States. The program is a 15-year strategic investment framework which started in 2008 and will be completed in 2024.

From the total budget, USD 58 million was given as a grant while USD 107 million was provided as a long-term loan, it was learnt.

According to the GCF, the activities of the Ministry of Finance in climate-resilient development pathways are clued at over USD 400 million. These activities include mitigation and adaptation projects and programs in a variety of sectors, particularly agriculture, water, energy, forestry, buildings, industries, and transport.

The Green Climate Fund has provided a total of USD 272.8 million to Ethiopia and implements a number of projects in the country. Among other projects, GCF is currently implementing the Resilient Landscapes and Livelihoods Project in Ethiopia which is designed to improve climate resilience, land productivity and carbon shortage, while also increasing access to diversified livelihood activities in selected vulnerable rural watersheds of Ethiopia.


Source: Ministry of Finance and GCF website