The global lender on Friday (September 29) announced that it had signed the loan and grant agreement.
Breakdown of $1.3bn facility
Of the total amount, $700 million would be used to “improve equitable access to basic services and strengthen accountability” in education, health, agriculture and other sectors.
The current positive investor sentiment towards Ethiopia could be enhanced by reforms to improve the business climate. A more flexible exchange rate would help competitiveness.
The remaining $600 million was a grant to finance the East African country’s “Rural Productive Safety Net” scheme, which is handing out cash or food to 8 million people in exchange for participation in public development projects, a statement added.