World Bank approves $1.5 billion funding for Ethiopia

The World Bank pledged $16.6 billion of funding to Ethiopia over three years, providing a fillip to eastern Africa’s biggest economy as it restructures its debt and opens up the nation to foreign investors. Bloomberg Africa reports that the International Development Association’s assistance includes a $1 billion grant and a $500 million concessional loan to help the Horn of Africa nation strengthen its financial sector and improve fiscal transparency.

According to the AFP news agency, the World Bank’s financing is the first in a series and will include a $1 billion grant and a $500 million concessional loan, the Washington-based lender said on Tuesday.

“This operation supports the government of Ethiopia at a critical time in its efforts to accelerate poverty reduction and shift to more inclusive, sustainable, and private sector-led growth,” World Bank Ethiopia director Maryam Salim said.