Ethiopia has clinched a US$1 billion funding package from the World Bank to accelerate its sweeping economic-reform agenda and spur growth, the Ministry of Finance announced on Friday.
Posted via the ministry’s official Facebook page, the statement said the support will come as a blend of highly-concessional loans and grants. Funds are earmarked to:
- Stabilise the financial sector,
- Sharpen trade competitiveness, and
- Bolster domestic revenue mobilisation.
World Bank officials in Addis Ababa have not yet issued a comment detailing the facility’s terms or sectoral breakdown.
Broader reform context
- IMF programme: On Tuesday the IMF executive board completed its latest review of Ethiopia’s US$3.4 billion Extended Credit Facility / Extended Fund Facility arrangement, releasing a further US$262 million disbursement.
- Policy milestones: The IMF-supported roadmap includes last year’s flotation of the birr, steps to liberalise key industries, and pledges to deepen fiscal transparency.
- Next hurdles: Washington-based IMF staff underscored the need to streamline the foreign-exchange market, raise tax revenues, secure external debt sustainability, and deliver fuller budget disclosure.
The fresh World Bank envelope, combined with ongoing IMF backing, is expected to give Addis Ababa critical liquidity and policy space as it navigates currency reform, private-sector opening and post-conflict reconstruction.