A financing agreement for a total of $400 million was concluded between the World Bank and the government of the Federal Republic of Ethiopia.

The World Bank and the Ministry of Finance essentially agreed to a financing agreement of US$ 400 million (or around ETB 21.8 billion), of which US$ 350 million is in the form of a grant and US$ 50 million is in the form of credit.

Ethiopia has seen numerous crises, including COVID-19, climatically related catastrophes, and deadly conflicts, all of which have interfered with the provision of basic services.

The funds from the Loan and Grant will be utilized to boost service delivery and accountability across all regions, particularly those affected by violence, droughts, and high refugee populations, as well as learning outcomes and nutrition programs for girls and boys.

“The proceeds from the Loan and Grant will be used to improve the learning outcomes and nutrition services for youth,” the finance ministry said.

The deal also targets “strengthening service delivery and accountability, in all regions including areas affected by conflict, droughts, and high levels of refugees,” it added.

PforR (Program for Results) and IPF (Investment Project Financing) components make up the Human Capital Operation. While the IPF portion is designed to provide technical assistance and capacity-building support for strengthening systems and delivery of quality services, the PforR component aims to strengthen fundamental service delivery systems to lessen the impact of crises, improve learning outcomes, and address stunting in selected Woredas.

The Agreements were signed on behalf of the Ethiopian government by H.E. Mr. Ahmed Shide, Minister of Finance, and the World Bank’s Mr. Ousmane Dione, Country Director for Ethiopia, Eritrea, Sudan, and South Sudan.

At the ongoing Africa Heads of State Human Capital Summit in Dar es Salaam, Tanzania, on July 25th to 26th, 2023, Ethiopia reiterated its commitment to giving human capital development first priority.