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Ethiopia and the United Kingdom Sign two Grant Agreements

 

Ethiopia and the United Kingdom Sign two Grant Agreements

ADDIS ABABA: Two grant agreements amounting to 105 Million Pound Sterling (approximately 4.71 Billion ETB ), was signed today July 28/2020 between the Federal Democratic Republic of Ethiopia and the United Kingdom (UK) at a ceremony held at the Ministry of Finance (MoF).

According to the first grant agreement, the UK government has committed to finance £60 Million for the implementation of Land Investment for Transformation, Phase 2 (LIFT-UP) program so as to bring transformative, systematic, and sustainable change in land certification and market system in four regions (Amhara, Oromia, Tigray and Southern Nations, Nationalities, and Peoples Region (SNNPR).

The main outputs of the program are to anticipate 7 million land parcels (out of a total of 36 million uncertified) with second-level land certification, and computerizing 103 woredas land administration systems where second-level certification has taken place. The ultimate objective and impact of the program is sustainable and inclusive growth derived from effective land governance and markets. Specifically, this will be improved income for 1.2 million smallholder farms, particularly women and vulnerable groups, by at least 15%.

On the other hand, according to in the second grant agreement, the UK government dedicated to earmarked €45 Million for the support of Accelerating Ethiopia's Economic Transformation (ACCELERATE) program, which is designed in line with out-ward oriented, manufacturing led sustainable and inclusive growth program of Ethiopia. The aim of the program is to support the Ethiopian government's vision of export-led manufacturing growth through foreign and domestic investments to become a reality more quickly and in a sustainable and inclusive way. The key objectives of the program are to Support industrialization in Ethiopia while creating jobs and having value-adding spillovers in the local economy, drive up the quality of jobs, career growth opportunities and access to value-adding products and services for industrial workers thereby creating best case examples of how workers can also benefit from the industrialization process and Strengthen key federal and regional institutions as well as the regulatory and policy environment within which businesses operate.

The Main Outcomes of the program are  40,000 new jobs supported (gender-disaggregated), £ 25 million (Twenty-five million pounds sterling) private investment generated, 10 Government institutions (federal and regional) getting 30% improved feedback from businesses, 60 domestic businesses providing products and/ or services to FDIs in targeted 4 Industrial Parks (IPs) and four fully operational industrial parks are operating effectively. The program will be implemented in Oromiya, Amhara, Tigray and Southern, Nations, Nationalities, and People Regional State Industrial Parks (IPs).

H.E. Mr. Ahmed Shide, Minister, Ministry of Finance representing the Government of the Federal Democratic Republic of Ethiopian and Honorable James Duddridge MP, Minister for Africa of the UK’s Foreign and Commonwealth Office and the Department of International Development representing the government of UK were signed these grant Agreements.

 

 


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