Ethiopia has signed a $1 billion financing agreement with the World Bank to support its economic reform programme and boost its financial sector stability, enhance trade competitiveness, and strengthen domestic resource mobilization.
The World Bank, in a statement, noted that the financing comprised a $650 million grant and a $350 million concessional loan.
subject to board approval and resource availability. This is part of roughly $5 billion in new financing over the next three fiscal years, which the World Bank Group’s International Development Association is expected to give to Ethiopia.
The funding pledge follows the International Monetary Fund’s approval this week of the latest review of Ethiopia’s $3.4 billion loan programme, unlocking access to another $262.3 million tranche.
IMF Backed Ethiopian Economic Reforms
Ethiopian reforms backed by the IMF include last year’s floating of the country’s birr currency and moves to open up the previously-closed economy to the private sector.
The IMF has also said it was important for Ethiopia to improve foreign exchange market functioning, boost domestic revenues, restore external debt sustainability and enhance fiscal transparency.
