EU, World Bank Ink 35 Million Euro Grant to Support Ethiopia’s PSNP

Addis Ababa (ENA) December 12/2022 The European Union (EU) today has signed a 35 Million Euro Grant with the World Bank (WB), to be disbursed through the latter to support the Ethiopian Government’s rural Productive Safety Net Program (PSNP).

EU Ambassador to Ethiopia, Roland Kobia and World Bank Operations Manager, Doima Petrescu signed the grant in Addis Ababa in the presence of State Minister of Finance for Economic Cooperation, Semereta Sewasew.

State Minister of Finance for Economic Cooperation, Semereta Sewasew said the peace agreement opens a new chapter for Ethiopia.

The support will be critical to the people, especially in the conflict areas, she noted.

We are also expecting to work in other areas, including ensuring that the peace agreement materialized, and also the people benefit also from the peace dividend, she said.

EU Ambassador to Ethiopia, Roland Kobia, on his part, said the grant for the fifth phase of PSNP comes following the landmark peace agreement and cessation of hostility that we hope will open a new chapter in the country.

He further said that the agreement will attract all the good will of partners that are able and willing to contribute to the reconstruction and recovery efforts being undertaken by the government of Ethiopia.

The EU has supported the PSNP initiative since its inception, he noted, adding that the EU has remained among Ethiopia’s largest bilateral assistance partners, investing over 60 million dollar in the last five years to the safety net program.

Since 2005, the EU has contributed over 300 million Euros, he noted.

World Bank Operations Manager, Doima Petrescu, on her part, said PSNP is the largest safety Net program in Sub Saharan Africa.

‘The PSNP provides food and or cash transfers to about eight million people in Ethiopia, contributing to poverty reduction, livelihood support and also to climate change adaptation through public works in rural areas,’she added.