WorldBank

Ethiopia Secures Over $4 Billion from Loans and Grants in 9 Months

Ethiopia Secures Over $4 Billion from Loans and Grants in 9 Months

The Ministry of Finance has presented its nine-month financial report to the House of Representatives. According to the report, Ethiopia has received $4.5 billion from loans and grants over the past nine months. Of this amount, 54 percent came from grants, while $849 million was obtained through loans. The World Bank contributed $1 billion of the total, reflecting a strong relationship between Ethiopia and the institution. The Ministry of Finance also reported that 356.5 billion birr was targeted for tax collection, with 338 billion birr successfully collected. Additionally, 739 million birr was collected from current and overdue payments from government…
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Ethiopia Inks $1.72 Billion Finance Agreement with World Bank

Ethiopia Inks $1.72 Billion Finance Agreement with World Bank

Ethiopia has secured a significant financial boost, receiving more than $850 million in grant from the World Bank. The Ministry of Finance recently announced the signing of a monumental agreement between Ethiopia and the World Bank, totaling $1.72 billion, equivalent to 97 billion birr. The agreement, a testament to the collaborative efforts between Ethiopia and the World Bank, was formalized through the signatures of Finance Minister Ahmed Shide and Ousmane Dione, the World Bank's representative for Sudan and South Sudan. Of the total financial assistance received, $850 million is earmarked for various developmental projects across Ethiopia. Specifically, $500 million of…
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Ethiopia Requests $3.5 Billion Loan from IMF

Ethiopia Requests $3.5 Billion Loan from IMF

Reuters has reported that Ethiopia is currently in talks with the International Monetary Fund (IMF) to secure a $3.5 billion loan aimed at supporting its ongoing economic reform and addressing its financial crisis. The report highlights that Ethiopia has formally requested a special loan from the IMF to assist in covering its annual budget deficit. During a meeting with international bond buyers last week, government officials expressed confidence in reaching a loan agreement with the IMF within the first three months of 2024. The report also indicates that the country's foreign currency reserve for import trade is less than one…
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World Bank and IMF exempt $4.5 billion in loans for Somalia

World Bank and IMF exempt $4.5 billion in loans for Somalia

The government of Somalia celebrated a significant milestone as the IMF and World Bank granted $4.5 billion in debt relief. Prime Minister Hamza Abdi Barre emphasized that this relief, part of the Heavily Indebted Poor Countries (HIPC) program, symbolizes Somalia's financial viability and attracts foreign investment. The relief, inclusive of forgiveness from various creditors, reduces Somalia's external debt from 64% of GDP in 2018 to less than 6% by the end of 2023. PM Barre sees this as a monumental opportunity, allowing Somalia to invest in development, revitalize the economy, and access loans from international institutions. In contrast, Ethiopia faces…
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World Bank grants $730 million to modernise Ethio-Djibouti transport

World Bank grants $730 million to modernise Ethio-Djibouti transport

The Ministry of Finance and the World Bank have signed a $730 million support agreement for the African Regional Economic Corridor Project (Ethio-Djibouti Corridor Project). The project will strengthen Ethiopia's logistics and communication capacity in a manner linked to the strategic Addis Ababa-Djibouti corridor, which accounts for 90 percent of Ethiopia's maritime trade. According to the agreement, financial support will be provided for the construction of the Meoso-Deredawa road. The Ministry of Finance announced that the construction will increase the capacity and efficiency of transportation. Other infrastructures, including access to health, water and education services, will be supported for citizens…
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Safaricom receives $257 million to boost digital financing in Ethiopia

Safaricom receives $257 million to boost digital financing in Ethiopia

Safaricom Ethiopia is set to receive funds from the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), members of the World Bank Group. The company will receive support in the form of full equity investment, a loan and guarantees to support the on-going construction and operation of their greenfield telecommunications network to drive digital connectivity across Ethiopia. The deal between the two parties was officially closed two months after the IFC's agreement to invest $157.4 million in equity in Global Partnership for Ethiopia BV (GPE) and a $100 million A-loan into its subsidiary, Safaricom Ethiopia Plc. “The progress…
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World Bank grants $400 million to Ethiopia

World Bank grants $400 million to Ethiopia

Ethiopia and the World Bank have signed a $400 million financial support agreement for human resource development in an online ceremony. Of the $400 million signed in the agreement, $350 million are development support and $50 million are loans. The financial support is used for the development of human resources and to improve the quality and effectiveness of education and to enhance the service of the food system. The Ministry of Finance announced that girls and teenagers across the country will benefit from the World Bank's financial support. The human resource development service includes areas affected by conflict and drought…
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Ethiopia Requests $12 billion loan from IMF and WB

Ethiopia Requests $12 billion loan from IMF and WB

Ethiopian government has requested a loan of $12 billion for the implementation of the second indigenous economic program. The loan and grants requested is to recover the foreign debt owed by the International Monetary Fund, the World Bank and other financial organizations. Mr. Teklewold Atnafu, the Prime Minister's Economic Adviser, told Reporter that Ethiopia's current relations with US, France and other countries are in good steps, and the loan can be obtained. The advisor added that, Ethiopia has requested to reschedule the loan repayment period and there is hope that the loan will be released after negotiations. The US Congress…
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World Bank promises to support Ethiopia’s war affected Economy

World Bank promises to support Ethiopia’s war affected Economy

The World Bank Group (WBG) announced that, monitoring the situation throughout the entire country and continues to call for solutions that promote stability and long-lasting peace. Consistent with our strategy to remain engaged in situations of conflict and fragility and to support greater resilience of Ethiopia’s people, the World Bank Group (WBG) remains committed to continuing its partnership with Ethiopia for the benefit of all Ethiopians. Accordingly, the WBG is supporting Ethiopia to address its citizens’ demands for basic human services such as education, food security, health, clean water, livelihood support, women’s empowerment, and social and environmental protection across the country. Over…
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Ethiopia’s foreign debt reaches $28 billion

Ethiopia’s foreign debt reaches $28 billion

Ethiopia's foreign debt reaches $28 billion. The Ministry of Finance has announced that, the amount of debt that Ethiopia borrowed from foreign lenders has reached 28 billion dollar. According to the minister's report, 54 percent of Ethiopia's foreign debt of 28 billion dollars was obtained from the World Bank and African Development Bank. 46 percent of total debt was obtained from China and other countries. Due to its high foreign debt, Ethiopia has been placed in the list of countries with high debt burden in the classification of international money credit institutions. On the other way,, three years ago, Ethiopia…
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