The WBG’s strategic focus is to assist Ethiopia in forging a more inclusive and sustainable growth path, supporting the objectives of the Home-Grown Economic Reform Agenda and the current 10-Year Development Plan. The WBG supports a more spatially inclusive approach to development, one that leverages national programs to provide quality services to all areas of the country. The WBG is helping to promote structural and economic transformation through increased productivity in rural and urban areas by focusing on basic education, access to markets, and job opportunities for youth. It is also helping to build resilience and inclusiveness (including gender equality) by improving safety nets, investing in productive landscapes, and focusing on the Early Years agenda.
The WBG also supports institutional accountability and assists in combating corruption by focusing on improving governance and promoting social accountability. The private sector is expected to be a key contributor to Ethiopia’s future development, and prominent roles are being played by the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) towards supporting private domestic firms and foreign investors.
WBG programming has been adjusted in the past year and a half towards a more people-centric approach that focuses on delivery of basic services, food security, and addressing the needs of vulnerable populations (especially internally displaced people (IDP) and women, including survivors of gender-based violence) while retaining a long-term development focus.
As of March 22, 2023, the World Bank’s portfolio consists of 42 lending operations with $12.88 billion in commitments, complemented by $880 million in trust fund financing. The portfolio includes financing for conflict-afflicted communities and IDPs, national programs on agriculture, sustainable land management, basic service delivery (including health, education, and water and sanitation), as well as support in the energy, transportation, trade logistics, digital development, and financial sectors.
The International Development Association (IDA), the World Bank’s fund for the poorest, also provides analytics and advisory services to support evidence-based decision-making and stronger implementation on a wide range of development issues. IDA is Ethiopia’s largest provider of official development assistance. It has committed more than $26 billion to nearly 155 projects in Ethiopia since 2000, most notably the: Enhancing Shared Prosperity through Equitable Services Program, COVID-19 Emergency Response Project, Rural and Urban Productive Safety Net Programs, Urban Institutional and Infrastructure Development Project, Flood Management Project, Locust Emergency Response Project, Agriculture Growth and Food System Resilience Projects, Response –Recovery –Resilience for Conflict-Affected Communities Project, Digital Foundations, as well as several important Energy, Water, and Transportation sector projects.
Drought - The World Bank has been working closely with the Ethiopian government to respond to the drought-affected lowland areas of Somali, Oromia, and Southern Nations Nationalities and Peoples’ regions. World Bank-financed operations working on water, livestock, and safety nets were reprogrammed to provide $121 million in immediate financing in early 2022 and support has been accelerated during 2023 through existing operations focusing on pastoral livelihoods, productive safety nets, and water. Recent operations focusing on groundwater management and livestock markets will support longer-term solutions in these areas.
Last Updated: Mar 27, 2023