The bank made a statement via its website late on Tuesday that the money; a $600 million grant and a $600 million loan – would go towards supporting reforms in the financial sector including improving the investment climate.
The bank is going to provide new financial and technical support, as a response to the reforms made by government since Prime Minister Abiy Ahmed took office in April.
The support will go towards promoting public-private partnerships “to improve efficiency in key sectors” including telecom, power, and trade logistics, the bank said.
In these sectors, the bank said its support would also help the government “reduce inefficiencies and operating costs and improve financial performance” to help Ethiopia attract more foreign direct investment 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 will significantly loosen the state’s grip on the economy.
-SABC News
