World Bank provides $1.72bn to Ethiopia for power, water supply

AFRICAN BUSINESS AND ECONOMYApril 7, 2024 at 4:28 PM UTC

TLDR

Ethiopia secures $1.72 billion in World Bank loans for electricity, water, and food infrastructure.
$523 million committed to expanding electricity grid and renewable energy in Ethiopia.
$500 million allocated for improving food market access and rural road networks in the country.

The World Bank and Ethiopia have inked loan agreements amounting to $1.72 billion to bolster electricity and water supply infrastructure and facilitate food transportation to markets, as announced by the finance ministry.

Of the total, $523 million is earmarked for expanding Ethiopia's electricity grid and enhancing renewable energy generation capabilities, aiming to bolster the nation's energy infrastructure.

Furthermore, $500 million will be allocated to initiatives enhancing access to food markets, including projects to upgrade rural road networks, as outlined in the ministry's statement.

Key Takeaways

Ethiopia, grappling with foreign currency shortages exacerbated by the COVID-19 pandemic, conflict in the Tigray region, and environmental challenges like droughts and floods, continues to face multifaceted challenges. A portion of the World Bank's funding will address water supply improvements, while additional support will target youth employment programs in urban areas. World Bank loans typically offer favorable terms, including low to zero interest rates and lengthy repayment periods spanning 30 to 40 years, reflecting efforts to support sustainable development initiatives in Ethiopia amidst its complex socio-economic landscape.

Ethiopia

World Bank

Economy

Water Supply

Power Supply

Renewable Energy