World Bank has approved a $250-million supplemental financing to Ethiopia on Wednesday. The financing, approved by the Bank's Board of Executive Directors, is part of Ethiopia's second and ongoing Growth and Competitiveness Programmatic Development Policy Financing. Half of the amount, $125 million, is in grants, while the remaining half is a loan.
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 World Bank has approved a USD 700 million credit through the International Development Association (IDA) to support Ethiopia’s Financial Sector Strengthening Project (FSSP). This initiative aims to bolster the stability and resilience of Ethiopia’s financial institutions.
The Board of Executive Directors endorsed a new World Bank Group (WBG) five-year Country Partnership Framework (CPF) to support Ethiopia’s development aspirations. The CPF is informed by extensive consultations with a broad range of stakeholders and is in line with priorities outlined in the country’s Growth and Transformation Plan II.
Ethiopia concluded an 18 billion Birr loan agreement with the World Bank on June 15, 2016. The loan is said to be utilized by Ethiopia to expand infrastructure.
