March 21/2020( ENA) The World Bank’s Board of Executive Directors approved 500 million USD in grant and loan for Ethiopia in continued support of the homegrown reform agenda.
The Board of Directors on Thursday approved the stated amount in the form of grant 250 million USD and the rest is loan from the International Development Association (IDA).
In a statement the bank said the funds would go towards sustaining reforms in financial sector including boosting investment climate and the energy sector.
The Second Ethiopia Growth and Competitiveness Development Policy Operation (DPO) is intended to accelerate Ethiopia’s economic growth and achieve its vision of becoming a lower-middle-income country.
This operation is the second of a series of DPOs and provides both financial and technical support to Ethiopia’s economic reforms, the statement stated.
The operation is designed to help Ethiopia revitalize the economy by broadening the role of the private sector and attaining a more sustainable development path.
Ethiopia, with support from the operation has continued the implementation of reforms in the energy sector to improve efficiency and cost recovery, while protecting the poor.
World Bank Task Team Leader for the Operation, Miguel Eduardo Sanchez Martin, said “this operation builds on the structural reforms initiated in 2018 and contributes to Ethiopia’s efforts to improve competitiveness, boost exports, generate jobs and accelerate inclusive growth.”
The DPO focuses on three pillars: maximizing finance for development, improving the investment climate and developing the financial sector; and promoting transparency and accountability.
Senior Energy Specialist and Task Team Leader for the program, Mikul Bhatia, said on his part that “The reforms implemented will help turn-around the electricity sector’s financial performance and support Ethiopia’s ambition to provide universal access to electricity.”
This operation is aligned with the World Bank Group’s twin goals of ending extreme poverty and promoting shared prosperity, the Country Partnership Framework for Ethiopia, as well as the Government of Ethiopia’s development strategy.