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Ethiopia signs $907 mln financing pact with World Bank

PUBLISHED: Fri, 23 Apr 2021 14:39:28 GMT

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NAIROBI, April 23 (Reuters) – Ethiopia’s finance ministry signed a $907 million financing agreement with the World Bank on Friday geared towards improving access to financing, the fight against COVID-19 and electricity investment, it said.

Some $700 million was a loan and $207 million a grant, the ministry said in a statement.

The ministry said that $200 million will go towards small and medium businesses affected by the pandemic with the aim of easing their financing challenges.

Another $207 million will be for the deployment of COVID-19 vaccines and the remaining $500 million will be invested in efforts to increase access to electricity in the Horn of Africa nation.

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Like other countries around the world, Ethiopia’s economy has been hit hard by the pandemic.

In February, the International Monetary Fund said that Ethiopia’s economic growth is projected to be 2% in 2020/21, largely due to the effects of the coronavirus, but it is expected to rebound to 8.7% in 2021/22 in line with a global recovery.

(Reporting by Nairobi newsroom; Writing by Omar Mohammed; Editing by Andrew Cawthorne and Emelia Sithole-Matarise)