Ethiopia, Italy Sign 22 Million Euros Concessional Loan Agreement

Addis Ababa June13/2022/ENA/ Ethiopia and Italy have signed a concessional loan agreement amounting 22 million Euros to support Argo industries in Ethiopia.

Finance Minister Ahmed shide and Foreign Minister of Italy, Luigi Di Maio signed the loan agreement today in Addis Ababa.  

Speaking at the signing ceremony, Ahmed Shide said Ethiopia and Italy have long standing comprehensive political, economic and cultural partnership based on mutual trust.   

The allocated finance will be used to support the development of the Bulbula, Bure, Yirgalem, and Ba’eker Integrated Agro-Industrial Parks (IAIPs) and the proximity of Rural Transformation Centres (RTCs), he added.

According to the minister, these projects aims to create job in rural areas of the country, increase farmers’ incomes, generate export revenues and enhance import substitution of agro processed goods to economic growth and structural transformation.

The main activities to be performed by the intervention are strengthening the capacities of the National and Regional Industrial Park Development Corporations, business capacities of farmers’ organizations and private investors, as well as creating linkages between farmers’ organizations and agro- processors through innovative contractual agreements.

It also aims at constructing and equipping of centers of excellence in the IAPs and facilitating credit for equipment for small and medium manufacturing enterprise in the selected value chains, it was learned.

Italian Foreign Minister and International cooperation Luigi Di on his part said that the agreement testifies Italy’s willingness to continue cooperation with Ethiopia and its readiness to bolster productive assets in Ethiopia.

The initiative aims at strengthening the Ethiopian private sector in agro industry and providing food quality and safety through inclusive sustainable management of industrial parks, he added.

He also expressed his belief that the project will create new opportunities, consumers, workers, and entrepreneurs in Ethiopia.