Ethiopia: World Bank offers $1bn support following Abiy reforms

article-img

Ethiopian prime minister Abiy Ahmed says the World Bank will provide $1 billion in budget support for the country over the coming months, thanks to his sweeping reforms since coming into office earlier this year.

The World Bank and various other donors suspended budgetary support for Ethiopia in 2005, following election violence where government forces killed hundreds of civilians. Since coming into power in April, Abiy has introduced a range of reforms and criticised the conduct of security forces in the country during protest violence over the past few years.

Abiy reforms rewarded by donors

“This is due to the reforms taking place in the country,” Prime Minister Ahmed told reporters in Addis Ababa on Saturday, speaking of the deal with World Bank.

The global finance body credited Ethiopia for maintaining its position as one of Africa’s fastest-growing economies in recent years but warned the country’s economy is largely state-driven – something Abiy is attempting to change with the privatisation of major companies such as Ethiopian Airlines.

Abiy met with World Bank chief Jim Young Kim during a three-state visit in the US.

“PM Abiy met today with World Bank Group President Jim Young Kim in DC. They had discussion on a range of issues including: future of disruptive technology, human capital, sustainable debt financing and risk of debt distress. Dr Kim said WBG is ready to provide a robust support to Ethiopia,” the PM’s chief of staff tweeted on July 27.

Featured image: By ChuckTBaker – Own work This file was derived from: 320 worldbank-logo.jpg:, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=32076789

 

About Aaron Brooks

Aaron Brooks is a UK journalist who wants to cut out the international agendas in news. Spending his early years in both England and Northern Ireland he saw the difference between reality and media coverage at an early age. After graduating from the University of Chester with a BA in journalism, his travels revealed just how large the gap between news and the real world can be. As Editor-in-Chief at East Africa Monitor, it’s his job to provide a balanced view of what’s going on in the region for English-speaking audiences.