Ethiopia and the World Bank on Friday signed a financing agreement amounting $ 250 million to support the country’s second growth and competitiveness development policy.The agreement was signed by Ahmed Shide, Ethiopia’s Minister of Finance and Carolyn Turk, World Bank Country Director for Ethiopia, Eritrea, Sudan and South Sudan.
Out of the total financing, $125 million is in the form of credit, while the remaining $125 million is a grant, according to a statement released by the Ministry .
“This operation that is provided in the form of budget support aims at boosting economic transformation by increasing private sector participation and promoting good governance practices,” it said.
“Overall, it targets to assist the on-going reform and transformation efforts in Ethiopia as well as the implementation of the recently approved Home-grown Economic Reform Agenda, it added.
The supplemental budget support will help Ethiopia to quickly close the current financing gap due to the COVID-19 pandemic and minimize the impact of the crisis on continued implementation of the reform agenda.