Sep 2 , 2023
The Council of Ministers approved a series of concessional loans from the Italian government and the International Development Association (IDA) during its 24th meeting last week. These loans are concessional with little or no interest rates and payback periods of up to 38 years along with grace periods reaching up to 16 years. The hefty sum of 300 million dollars in financial package from the IDA, a subsidiary of the World Bank that offers concessional loans and grants to the world's poorest developing countries, will primarily be geared towards the development of electricity infrastructure in rural Ethiopia and the development of human resources. While this loan is interest-free it stipulates a 0.75pc service charge to the Association for its services. Out of the 56 million to be received from the Italian government 10 million euros will be allocated to improve the coffee supply chain, 24 million will be geared towards investment in agroindustry in rural Ethiopia while the rest is set aside for water infrastructure development projects in Wabi Shebele and Awash rivers.
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