Ethiopia and the World Bank have finalized loan agreements totaling $1.72 billion, aimed at bolstering critical sectors including electricity, water supply, as well as to facilitate the movement of food to markets.
According to the finance ministry’s announcement on Friday, the funding will address pressing needs exacerbated by various challenges, including the COVID-19 pandemic, conflict in the Tigray region, and environmental crises like droughts, floods, and locust invasions.
Of the total amount, $523 million will be allocated to expanding Ethiopia’s electricity network and promoting renewable energy sources. An additional $500 million will support projects aimed at improving access to food markets, particularly in rural areas, by enhancing road networks. The remaining funds will be directed towards enhancing water supply infrastructure and implementing youth employment programs in towns.
These loans from the World Bank, which typically feature low to zero interest rates and extended repayment periods of 30 to 40 years, represent a significant step in addressing Ethiopia’s pressing development needs and fostering economic resilience amidst ongoing challenges.
Melissa Enoch
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