Ethiopia nets $1.2 bn loans, grants from World Bank

The World bank has approved $1.2 billion in grants and loans to Ethiopia.

In a statement posted to its website on Tuesday, the bank said the $ 600 million grant and $ 600 million loan will finance reforms in the financial sector and improve investment climate.

It said it is providing new financial and technical support in response to reform pledges by Prime Minister, Abiy Ahmed.

The World Bank also said this support will help promote public-private partnerships to improve efficiency in telecom, power and trade logistics.

The statement said, the support will help the East African nation to attract more foreign direct investments and raise export revenues.

Until Abiy took office and began announcing sweeping political and economic reforms, the country of 105 million had an economy tightly controlled by the state. Investors hope the economic reforms announced in June could significantly loosen the state’s grip on the economy.

Reuters