World Bank grants Ethiopia $1.72 billion loan for electricity, water supply
The funding from the World Bank will be utilised to improve water supply and implement programmes benefiting disadvantaged youth in urban areas.
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Ethiopia and the World Bank have signed a loan agreement totaling $1.72 billion, as confirmed by Ethiopia's finance ministry on Friday.
These agreements, signed by Ahmed Shide, Ethiopia's Finance Minister, and Ousmane Dione, Country Director for Ethiopia, Eritrea, Sudan, and South Sudan at the World Bank, aim to enhance electricity and water supply as well as improve food transportation to markets.
The Ministry's statement indicates that $523 million will be directed towards expanding the electricity network and promoting renewable energy generation, while an additional $500 million will support projects enhancing access to food markets, including rural road network improvements.
"$82.5 million grant to enhance the incomes of the urban poor and promote labour market inclusion for disadvantaged urban youth. Another $340 million credit to enhance livelihoods and climate resilience for pastoral and agropastoral communities in Ethiopia's lowlands... $275 million grant to increase access to water supply and sanitation services and to improve operational efficiency of water and sanitation in Addis Ababa and selected secondary cities," a statement from the ministry noted.
Despite facing challenges such as foreign-currency shortages, the Covid-19 pandemic, conflicts, and natural disasters like droughts, floods, and locust invasions, Ethiopia seeks to address these issues with the support of the World Bank.
Typically, World Bank loans offer low to zero interest rates and extended repayment periods of 30 to 40 years.
The Ministry of Finance & the World Bank signed six Financing Agreements amounting to 1.72 billion USD in the form of credits and grants, for the implementation of six projects aimed at driving sustainable development and inclusive growth in the country.https://t.co/M4HWKDwmJb pic.twitter.com/Na1uncPWTC
— Ministry of Finance - Ethiopia (@MoF_Ethiopia) April 5, 2024
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