A grant agreement amounting to US $50.00 million (approximately 868.50 million birr) was signed today Feb.15, 2012 between the Federal Democratic Republic of Ethiopia and the World Bank in a ceremony held at the ministry of finance and economic development (MoFED).
As stated during the agreement, the finance was secured from multi donor trust fund established for global agricultural and food security program (GAFSP) which is contributed by six developed countries and foundation. The Trust Fund is being administered by the World Bank. The resource will be used to supplement the implementation of ongoing agricultural growth project (AGP) aiming to increase agricultural productivity and market access for crop and livestock products in 83 woredas which are found in four regions of Ethiopia through increased participation of women and youth.
GAFSP is a program under the World Bank which works to scale-up agricultural assistance to low-income countries
AGP helps to create market opportunities and stimulate linkages of agro-enterprises and cooperatives with domestic regional and international markets. Furthermore, it expands the rural infrastructure, which will reduce the variability in agriculture production and will enable smallholders take advantage of new and more profitable opportunities.
Speaking at the signing ceremony, H.E Ato Ahmed Shide, state Minster of MoFED said that the growth and transformation plan set agriculture and rural development as one of the major strategic pillars and this financing agreement is completing a program that was designed to contribute for the achievements of the objectives of the pillar. He also appreciated the efforts that are being exerted by the World Bank and other development partners, which are working in collaboration with the World Bank, to help country’s development effort.
Country director of the World Bank to Ethiopia Mr.Guang Z.Chen on his part said that the government of Ethiopia needs to be congratulated for having successfully applied for GASFP support, which reflects the government’s commitment to agricultural development. He also noted that this support is an important instrument for achieving a central objective of the GTP by contributing to achieve sustained agricultural growth that will create employment and reduce poverty.
H.E Ato Ahmed Shide and Mr. Guang Zen Chen signed the agreement on behalf of Ethiopian Government and the World Bank respectively.