Nov 27 , 2018
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )
Ethiopia signed a grant agreement for 123 million dollars with the African Development Bank (AfDB) to be used in support of basic services.
The agreement was signed at the Ministry of Finance between Finance Minister Ahmed Shide and Gabriel Negatu, regional director of AfDB, on Friday, November 23, 2018.
The grant will be disbursed in two phases to regional governments and weredas and will be administered under a blocked account.
The areas of focus for the support are health, education, water and sanitation services. The grant is intended to supplement the Basic Services Transformation Program, which has been under implementation in Ethiopia for the past three years.
“The government will continue to work toward enhanced accountability and transparency in public service delivery, thereby strengthening the effectiveness of the program,” said Ahmed.
This support brings the Bank’s total commitment to Ethiopia to 1.74 billion dollars, which has been channelled to energy, transport, water supply and sanitation, agriculture, governance and the private sector.
A great deal of the multilateral development finance institution’s operations across the continent is dedicated to improving the standard of living, increasing accessibility of electricity and industrialisation.
In the same week, a concessional loan agreement amounting to 30 million Euros was also signed with the European Investment Bank, while another grant agreement was signed with the Danish government for 150 million dollars. Ahmed signed the former agreement with Werner Hoyer (PhD), president of the European Investment Bank.
The agreement with the EIB is aimed at supporting the Women Entrepreneurship Development Project by providing access to financial services and loans for micro and small-scale enterprises, while the grant by the Danish government will be utilised for the implementation of the Danish Country Programme that runs for half a decade.
The latter will cover the improvement of value chains in agriculture, food security, nutrition and climate resilience.
Getachew Yirga, an assistant professor at Bahir Dar University’s College of Business & Economics, believes that this financial support is coming at the right time as the country requires a capital injection.
“The recent political reform has played a part in influencing their support and working even more closely with the government,” he says. “The support can make a difference if implemented properly.”
In 2018, the World Bank pledged 3.3 billion dollars to Ethiopia, which is over three times higher than the Bank’s commitment the previous fiscal year, while the government targeted this fiscal year to cover over 19 billion Br of the budget from external assistance and almost 33 billion Br of its budget from loans.
PUBLISHED ON Nov 27,2018 [ VOL 19 , NO 970]
Viewpoints | Aug 03,2019
Radar | Jul 15,2023
Radar | Aug 29,2020
Editorial | Dec 21,2019
Radar | Jul 29,2023
Commentaries | Mar 23,2019
Radar | Oct 28,2023
Commentaries | Jan 15,2022
Fortune News | Feb 09,2019
Fortune News | May 24,2021
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Dec 2 , 2023
The symphony of traffic noise in Addis Abeba is not just a sign of life, but a siren...
Nov 25 , 2023
Ethiopia's quest to develop a functioning capital market is a demanding yet not unach...
Nov 18 , 2023
Prime Minister Abiy Ahmed (PhD) has made a fervent call for landlocked Ethiopia to ga...
Nov 11 , 2023
In November last year, a ray of hope pierced the gloomy skies of Ethiopia as the Pret...
I have a love-hate relationship with my phone. It is my go to source for information. I enjoy interacting with text messages and browsing t...
Over the weekend, I attended a wedding where my husband was one of the protocols. Despite the typical joy...
Or see contact page