Ethiopia, W/Bank ink financing agreement

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Ethiopia and the World Bank (WB) on Tuesday signed a $300 million financing agreement in the form of credit that will be used for the Urban Productive Safety Nets Project in the horn of Africa nation.The Minister of Finance and Economic Cooperation Abdulaziz Mohamed, and World Bank Country Director for Ethiopia, Caroly Turk signed the loan agreement.

The signing ceremony at the minister’s office in Addis Ababa witnessed statements from both sides in which the World Bank pledged continued support for government-led pro-poor projects in Ethiopia.

The minister spoke about the government’s efforts in ensuring food security and job creation in urban areas with a view to reducing poverty and vulnerability among those living below the poverty line.

The minister said the government of Ethiopia has allocated $450 million for the implementation of the urban productive safety net project, out of which the World Bank accounted for $300 million representing 67 percent of the share.

He further stated that the latest support would contribute in increasing opportunities for the urban poor, reduce urban poverty and facilitate growth enhancing program.

The project will support the urban poor through transfer of cash, building capacity of institutions and providing technical support that improves livelihoods.

According to the minster, the project will benefit more than 600, 000 people in 11 large cities in the country including in Addis Ababa and Diredawa.

World Bank Country Director for Ethiopia, Caroly Turk said the program will promote the government’s commitment to expanding productive safety net at a national level.