World Bank Launches $4bn fund to Invest in Ethiopia

Addis Ababa, Ethiopia
Addis Ababa, Ethiopia

AFRICANGLOBE – The World Bank is set to pump $4 billion into Ethiopia in the coming four years in order to enhance competitiveness and employment generation through its country partnership strategy.

Launching the new strategy on Wednesday in Addis Ababa, the bank said the money will be used to build on the progress achieved by Ethiopia during the past five years.

The World Bank said the strategy, which will be implemented from 2013 to 2016, will help Ethiopia address ongoing challenges and assist in the implementation of its development effort.

The Country Partnership Strategy framework includes two main pillars with governance as foundation, says a document released on the launching ceremony.

This support includes “fostering competitiveness and employment” in the country while “enhancing resilience and reducing vulnerabilities” that aims to support Ethiopia in improving the delivery of social services and developing a comprehensive approach to social protection and risk management.

Maintaining Ethiopia’s Growth

Ethiopia’s Minister of Finance and Economics Sufian Ahmed welcomed the new strategy and world banks effort to support Ethiopia.

During the past decade, he said “the World Bank has been at the forefront in support of Ethiopia’s revival and transformation derives”.

He said the strategy would be used in order to maintain the 11 percent economic growth rate that the country is currently registering, along with achieving Millennium Development Goals set in its five year plan.

Since 2011, Ethiopia adopted the five year Growth and Transformation Plan, with the aim of achieving an annual average economic growth of between 11 and 15 percent.

the World Bank’s Country Director, Guang Chen said the four year plan “is a result-based strategy anchored in the Ethiopia’s Growth and Transformation Plan”, which envisions for Ethiopia to “extricate itself from poverty to reach the level of a middle-income economy between 2020 and 2023”.

“Coinciding with the World Development Report 2013 on jobs, the strategy puts particular emphasis on supporting Ethiopia’s agenda in enhancing competitiveness and employment generation as one of the key pillars of the CPS,” Chen added.