Ethiopia’s Finance Minister Ahmed Shide looks on as World Bank President Ajay Banga addresses delegates during Banga’s visit to the Bole Lemi Industrial Park during an official visit to Addis Ababa, Ethiopia. Reuters File
According to the finance ministry on Friday, Ethiopia and the World Bank have inked loan agreements worth a combined $1.72 billion to improve the country’s water and energy supplies and to make it easier for food to reach markets.
According to a statement from the ministry, the bank would provide $523 million to improve the generation of renewable energy and develop the country’s electrical grid in the Horn of Africa.
According to the announcement, an extra $500 million would fund two initiatives that will increase access to food markets by enhancing rural road networks.
In addition to facing shortages of foreign cash, Ethiopia is still dealing with the COVID-19 epidemic, the aftermath of a two-year conflict in the northern Tigray region, and droughts, floods, and locust invasions in some areas of the nation.
The remaining World Bank funding will be allocated to improving water supply and supporting programs in towns that employ disadvantaged youths.
Typically, World Bank loans carry low to zero interest rates and have repayment periods of 30 to 40 years.
