Ethiopia and the World Bank signed a financing agreement amounting to a total of $400 million to boost human capital development in the East African nation, the Ministry of Finance disclosed last week.
The deal was signed on Wednesday by Finance Minister Ahmed Shide and World Bank Country Director Ousmane Dione, representing Ethiopia and the World Bank, respectively.
The finance ministry says the $350 Million of the total deal will be disbursed in the form of a grant and the remaining $50 Million in credit.
Ethiopia has been impacted by multiple crises including COVID-19, climate-related disasters, and devastating conflict, whose impact disrupted the delivery of essential services.
“The proceeds from the Loan and Grant will be used to improve the learning outcomes and nutrition services for youth,” the finance ministry said.
The deal also targets “strengthening service delivery and accountability, in all regions including areas affected by conflict, droughts, and high levels of refugees,” it added.
Its Human Capital Operation consists of Program for Results (PforR) as well as Investment Project Financing (IPF) components.
The PforR component is aimed to strengthen basic service delivery systems to mitigate the impact of the crises and improve learning outcomes and address stunting in selected Woredas. The IPF, meanwhile, is designed to provide technical assistance and capacity-building support for strengthening systems and delivery of quality services.
The signing on the final day of the ‘Africa Heads of State Human Capital Summit’ in Tanzania comes follows the approval of another $730 million grant by the World Bank for the Addis Ababa- Djibouti corridor upgrade plan.
The government will continue its commitment to investing in and leveraging human capital development, Deputy Premier Demeke Mekonned told participants of the Summit on Wednesday.