World Bank Virtually Inks $400 Million Agreement as Russia-Africa Summit Was Underway

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As many African states, including Ethiopia, attend the Russia-Africa leaders summit in St. Petersburg, the world bank was inking an “agreement” with Ethiopia’s Ministry of Finance.

Ahmed Shide, Ethiopia’s Minister for Finance, and  Mr. Ousmane Dione, World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan representing the Government of Ethiopia and the World Bank, signed the agreement. 

The Ministry, in an update published on its website this Thursday, indicated that the signing ceremony was a virtual one.  If what the Ministry says is true, Ethiopia will get $400 million from the World Bank. 

The $350 million will be made available in the form of grant while the remaining $50 million will have to be paid back as for it is a loan arrangement. 

Details of the string attached to the financial arrangement ( political, economic or cultural)  is largely left unspecified. What the ministry disclosed is that “The proceeds from the Loan and Grant will be used to improve the learning outcomes and nutrition services for girls and boys and strengthen service delivery and accountability, in all regions including areas affected by conflict, droughts, and high levels of refugees.” 

The financial arrangement is said to have a components of “Program for Results (PforR) and Investment Project Financing ” 

The allocation for the “PforR” component reportedly intended “to strengthen basic service delivery systems to mitigate the impact of the crises and improve learning outcomes and address stunting in selected Woredas.” 

And the Investment Project Financing (IPF) portion of the fund is planned for providing  “technical assistance and capacity building support for strengthening systems and delivery of quality services.” 

FBC, one of Ethiopia’s state media, on Friday reported that World Bank president Ajay Banga will be visiting Ethiopia. In his two day working visit, which starts on July 31, he will focus on identifying job creation opportunities for young people and women. 

A report from two weeks ago indicated that Ethiopia’s debt  continues to increase. US $3 billion debt was added this year. 

Source : Borkena