Addis Ababa, June 26, 2026 (FMC) — Ethiopia’s Council of Ministers, during its 57th regular session held today, approved a series of major financing agreements and policy reforms, while also forwarding key legislative bills to the House of People’s Representatives for further deliberation and final ratification.
The Council first reviewed three financing agreements signed with the International Development Association (IDA), totaling over 637 million Special Drawing Rights (SDRs), aimed at supporting priority national development initiatives.
The agreements include a 437.4 million SDR loan for the implementation of the Sustainable and Inclusive Development Policy, a 145.5 million SDR loan for the Community-Based Land Management Program, and a 54.6 million SDR loan for the Climate-Resilient Irrigation Development for Sustainable Productivity Project.
After discussion, the Council unanimously approved the draft bills ratifying the agreements and referred them to the House of People’s Representatives, confirming their alignment with Ethiopia’s national borrowing framework.
The Council also deliberated on draft regulations establishing service fees for services provided by the Ministry of Water and Energy, the Ethiopian Archives and Library Service, and the Educational Assessment and Examination Service.
The regulations are intended to enable the institutions to recover operational costs through service charges, while ensuring affordability and efficiency in service delivery. Following extensive discussion, the Council approved the draft regulations with amendments, deciding that they will enter into force upon publication in the Federal Negarit Gazette.
In addition, the Council discussed the draft proclamation for Ethiopia’s accession to the New Development Bank (NDB), the multilateral development bank established by BRICS member states.
It was noted that joining the New Development Bank would broaden Ethiopia’s access to alternative financing sources for development projects, strengthen infrastructure investment, and enhance macroeconomic stability through diversified international financial cooperation.
The Council unanimously approved the draft proclamation with additional inputs and forwarded it to the House of People’s Representatives for final legislative consideration and ratification.
The meeting further reviewed the revised Construction Industry Policy, which replaces the earlier framework issued in 2006 E.C.
While acknowledging progress in the sector, the Council noted persistent challenges related to technological advancement, rapid urbanization, and increasing infrastructure demand. The revised policy is designed to improve productivity and competitiveness, harmonize the legal and institutional framework, and better harness the sector’s development potential.
Following extensive deliberations, the Council unanimously approved the revised Construction Industry Policy with additional inputs, deciding that it would take effect immediately, starting today, June 26, 2026.
Finally, the Council reviewed the revised Urban Development Policy, which updates the framework first issued in 1997.
The updated policy aims to address gaps in urban governance while consolidating gains made in urban competitiveness, service delivery, infrastructure expansion, and rural–urban linkages. It is also intended to respond to emerging urbanization challenges across the country.
After extensive discussion, the Council unanimously approved the revised Urban Development Policy with additional inputs, deciding that it will take effect upon its publication, effective today, June 26, 2026.