Ethiopia announced on Friday that it has entered into a financial agreement worth $1 billion with the World Bank. According to a post by its finance ministry on Facebook, the funding will be provided in the form of a concessional loan and grant.
The funds are intended to support governmental efforts aimed at securing financial sector stability, increasing trade competitiveness, and enhancing the collection of domestic resources, it stated.
Earlier this week, the International Monetary Fund’s board approved the latest assessment of the East African nation’s $3.4 billion loan program, which enabled access to an additional $262.3 million tranche.
This development occurs amid growing concerns about the adverse effects of policies promoted by international financial institutions on African economies, with economists arguing that the global financial system is not beneficial for the continent.
Ethiopia’s reforms include the devaluation of the birr currency last year and initiatives to liberalise the previously controlled economy for the private sector, according to reports from Reuters news agency.
The IMF emphasised the necessity for Ethiopia to enhance the functioning of its foreign exchange market, increase domestic revenues, restore sustainability to external debt, and improve fiscal transparency.
