The Ethiopian government announced on Friday that it has signed a $1 billion financing agreement with the World Bank to support its ongoing economic reform programme and stimulate national growth.
According to the Ministry of Finance, the funds will be directed toward stabilizing the financial sector, enhancing trade competitiveness, and strengthening domestic resource mobilization. The announcement was made through an official statement shared on the ministry’s Facebook page.
In a separate statement, the World Bank confirmed that the financing package includes a $650 million grant and a $350 million concessional loan.
Both parties have held extensive discussions aimed at deepening cooperation across key sectors of the Ethiopian economy, including agriculture and energy.
The World Bank also revealed that, subject to board approval and availability of resources, its concessional lending arm the International Development Association (IDA) plans to provide Ethiopia with approximately $5 billion in new funding over the next three fiscal years.
This development comes just days after the International Monetary Fund (IMF) approved the latest review of Ethiopia’s $3.4 billion loan programme, unlocking an additional $262.3 million for the country.
The IMF-supported reforms include the floating of the Ethiopian birr in 2024 and efforts to liberalize the economy, allowing greater participation from the private sector.
The IMF has emphasized the importance of further policy actions, including improving the foreign exchange market, increasing domestic revenue generation, restoring external debt sustainability, and enhancing fiscal transparency.
These financial commitments from both the World Bank and IMF reflect growing international confidence in Ethiopia’s reform agenda, aimed at creating a more resilient and inclusive economy.
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