Ethiopia signs 1.72 billion USD Financing Agreements with the World Bank

April 5, 2024

April 5, 2024 - The Ministry of Finance and the World Bank signed six Financing Agreements amounting 1.72 billion USD (approximately ETB 97.35 billion) in the form of credits and grants, for the implementation of six projects aimed at driving sustainable development and inclusive growth in the country.

The projects include:

1. Rural Connectivity to Support Food Security Program: A USD 300 million grant to enhance climate-resilient accessibility to food markets and services for target populations and strengthen institutional capacity for rural road management.

2. Third Additional Financing for Strengthening Ethiopia's Adaptive Safety Net Project: An additional USD 200 million grant to further improve climate-resilient access to food markets and services for target populations and enhance institutional capacity for rural road management.

3. Second Additional Financing for the Urban Productive Safety Net and Jobs Project: A USD 82.5 million grant to enhance the incomes of the urban poor and promote labor market inclusion for disadvantaged urban youth.

4. Phase 2 of the Lowlands Livelihood Resilience Project: A USD 340 million credit to enhance livelihoods and climate resilience for pastoral and agropastoral communities in Ethiopia's lowlands.

5. Power Sector Reform, Investment, and Modernization in Ethiopia Project: Phase 1 of a Multiphase Programmatic Approach with a USD 522.63 million investment to strengthen and expand the electricity network and facilitate renewable energy generation in Ethiopia through operational and structural reforms.

6. Second Urban Water Supply and Sanitation Project - Additional Financing with A USD 275 million grant to increase access to water supply and sanitation services and to improve operational efficiency of water and sanitation in Addis Ababa and selected secondary cities.

The agreements were signed by H.E. Mr. Ahmed Shide, Minister of Finance, representing the Government of Ethiopia, and Mr. Ousmane Dione, Country Director for Ethiopia, Eritrea, Sudan, and South Sudan at the World Bank.