Ethiopia to Get US$ 350 Million World Bank Loan

By IndraStra Global News Team

By IndraStra Global News Team


Image Attribute: An estimated 11 percent of Ethiopia's 105 million people live in mainly pastoral areas. / Source: The World Bank

On June 3, 2019, the World Bank and Ethiopia signed a US$ 350 million financial assistance agreement to transform the lives of pastoralist communities in Ethiopia. 

The agreement was signed at Ethiopia's Ministry of Finance by Ethiopian finance minister Ahmed Shide and Carolyn Turk, World Bank Country Director for Ethiopia, Sudan and South Sudan, Ethiopia Broadcasting Corporate (EBC) reported.

The funds will be used for the implementation of the "Lowlands Livelihood Resilience Project (LLRP)*" which will help to improve the livelihoods and resilience of 2.5 million pastoralists and agro-pastoralists in Ethiopia by addressing their binding constraints. An estimated 11 percent of Ethiopia's 105 million people live in mainly pastoral areas.

The World Bank Group approved US$ 280 million in credit and US$ 70 million in grant via the International Development Association (IDA). Together, the combined US$ 350 million assistance aims to help activities that reduce long-term environmental degradation and vulnerability of communities to droughts.

It will also facilitate access to crucial social services such as water resources to communities, upgrade veterinary facilities and help construct key infrastructure such as bridges, roads, livestock markets, small scale irrigation schemes.

Last month, the World Bank approved US$ 200 million as a "Multiphase Programmatic Approach Financing Envelope" to support Ethiopia's ongoing energy sector reforms and encourage private-sector participation in the renewable energy sector.

*About Lowland Livelihood Resilience Project (LLRP)

The “Lowland Livelihood Resilience Project (LLRP)" is aimed to enhance the livelihood of pastoral and agro-pastoralists to external shocks with particular focus on the Arid and Semiarid land (ASAL) communities by implementing capital investment and rural livelihood subprojects. Environmental and Social Management Framework (ESMF) is developed for this project to ensure that adverse environmental and social impacts are minimized, mitigated and appropriately compensated for the asset and land that may be lost due to the implementation of the sub-projects.

The objective of the proposed project is to improved Livelihood Resilience of Pastoral and AgroPastoral Communities in Ethiopia. The Project would help improve the livelihoods of people living in pastoral and agro-pastoral areas, contributing to the Sustainable Development Goals (SDGs) 1 (no poverty); 2 (zero hunger); 3 (good health and well-being); 5 (gender equality); 6 (clean water and sanitation); 8 (decent work and economic growth); and 13 (climate action). 
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IndraStra Global: Ethiopia to Get US$ 350 Million World Bank Loan
Ethiopia to Get US$ 350 Million World Bank Loan
By IndraStra Global News Team
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