The World Bank has approved $1.2 billion in grants and loans to Ethiopia. A statement posted on the bank’s website said the funds, a $600 million grant and a $600 million loan, will go towards improving the investment climate and implementing reforms in the financial sector.
In response to the country’s dedication to addressing reforms, the World Bank said it will provide Ethiopia with new technical and financial support. The bank noted that the support will promote public-private partnerships “to improve efficiency in key sectors” including telecom, power, and trade logistics.
To help Ethiopia attract more foreign direct investment and raise export revenues, the World Bank said its support in these sectors will help the government “reduce inefficiencies and operating costs and improve financial performance”.
Previously, the country of 105 million had an economy tightly controlled by the state. However, when Prime Minister Abiy Ahmed took office in April, he began announcing sweeping political and economic reforms. Current and prospective investors hope the economic reforms announced in June will loosen the state’s grip on the economy.