World Bank Approves $1.2 Billion in Grant and Loan to Ethiopia
October 31, 2018 - The World Bank approved $1.2 billion in grants and loans to Ethiopia to support economic growth and the ongoing reforms in the country.
The financial support to Ethiopia comes in the form of grant of $600 million and loan of $600 million.
In astatement, the bank said the funds would go towards supporting reforms in the financial sector including improving the investment climate.
World Bank is providing new financial and technical support in response to the reform pledges made by the government since Prime Minister Abiy Ahmed took office in April, the bank said.
The Government of Ethiopia has embarked upon a path of political and economic transformation, the adds.
The support is meant to promote public-private partnerships "to improve efficiency in key sectors" including telecom, power, and trade logistics, according to the Bnk. This will also help "reduce inefficiencies and operating costs and improve financial performance" and attract more foreign direct investment and raise export revenues, the statement adds.
Ethiopian economy is largely driven by the government, rather than the private sector. Business rules and regulations in Ethiopia are among the more onerous in the world, according to WB doing business ranking where Ethiopia ranks 160th out of some 180 countries.
The World Bank and other international bodies have been advising successive Ethiopian governments to liberalize the ecomony for a long time, but very lttle has changed over the years.
The new Ethiopian government under the leadership of Dr. Abiy Ahmed is making substantial reforms including on the economy for which donor countries and organizations are responding positively.