Ethiopia, World Bank Sign $1 Billion Financing Agreement to Support Economic Reform

Addis Ababa, July 4, 2025 (FMC) — The Government of the Federal Democratic Republic of Ethiopia and the World Bank have signed a USD 1 billion financing agreement to support Ethiopia’s ongoing economic reform agenda and promote inclusive growth.

The financing, provided through the Second Sustainable and Inclusive Growth Development Policy Operation (DPO), includes both grant and concessional loan components.

The agreement reflects the World Bank’s continued commitment to Ethiopia’s ambitious reform program, an official statement from the Ethiopian government said.

The operation is designed to support key priorities, including enhancing financial sector stability, improving trade competitiveness, strengthening domestic resource mobilization, promoting transparent and effective public sector governance, and ensuring the sustainability of essential social services.

These reforms, according to the statement, are central to Ethiopia’s broader macroeconomic and structural transformation.

The Government of Ethiopia expressed deep appreciation to the World Bank for its steadfast support and long-standing partnership.

This latest agreement underscores the strong collaboration between the two sides in advancing shared goals of inclusive and sustainable development under Ethiopia’s Homegrown Economic Reform Program, it has been learned.

The agreement was officially signed by Mr. Ahmed Shide, Minister of Finance of Ethiopia, and Ms. Maryam Salim, World Bank Country Director for Ethiopia, Eritrea, Sudan, and South Sudan.