Addis Ababa, July 30, 2024 (Addis Walta) World Bank (WB) Executive Directors’ Board approved $ 1 billion grant and 500 million concessional credit from International Development Association (IDA).
The financial package, Ethiopia’s First Sustainable and Inclusive Growth Development Policy Operation, will assists the home grown economic reform introduced by Prime Minister Abiy Ahmed.
The finance package aims to increase the private sector orientation of the country’s economy by alleviating the main causes of macroeconomic imbalance and expanding trade operations.
Currently Ethiopia accesses $ 2 billion, of which half of this as grant, in concessional financing each year form IDA.
The World Bank’s portfolio in Ethiopia is now around USD 15.5 billion, with USD 7 billion ready for disbursement. Additionally, the International Finance Corporation (IFC) maintains an investment portfolio in Ethiopia valued at USD 319 million.
On another hand, the Multilateral Investment Guarantee Agency (MIGA) is actively engaged with USD 1.15 billion in guarantees mainly covering the telecommunications sector and is expected to grow over the coming years.
Access to about $6 billion budget and economic reform support over the next three fiscal years is also another financial benefit for Ethiopia.
WB press release further indicates “Subject to the Board’s approval of new operations and availability of IDA resources, this implies a total financial package of over $16.6 billion in undisbursed and future commitments available over the next three years.”