Ethiopia and the World Bank signed a total of $715 million financing agreements on Friday.
The agreement was signed virtually by Ahmed Shide, Minister of Finance, and Ms. Boutheina Guermazi, Director for Regional Integration Africa at the World Bank.
A Financing Agreement amounting to $600 million ($200 million in the form of grant and $400 million in the form of credit), for the implementation of the Food Systems Resilience Program (FSRP) and $115 million in the form of Grant for the implementation of De-risking, Inclusion and Value Enhancement of Pastoral Economies in the Horn of Africa Project (DRIVE) respectively which is in total $715 million.
The resource from the first Financing Agreement will be used to finance increasing the resilience of food systems and preparedness for food insecurity in project areas in Ethiopia.
The resource for De-risking, Inclusion and Value Enhancement of Pastoral Economies in the Horn of Africa Project will be used to enhance pastoralists’ access to financial services for drought risk mitigation, include them in the value chains, and facilitate the livestock trade in the Horn of Africa.