Ethiopia to get €100mln loan from France to support ongoing economic reform

The French agency for Development is set to offer 100 million euros loan to support the ongoing economic reform in Ethiopia.

The signing of a loan is supposed to take place at the Ministry of Finance of Ethiopia in the capital city, Addis Ababa on June 6. The agreement will be signed between Ahmed Shide, Ethiopian Minister of Finance, Mr Ignace Monkam-Daverat, the French Agency for Development (AFD) Country Director and Frederic Bontems, Ambassador of France to the Federal Democratic Republic of Ethiopia and to the African Union.

The support is the result, what the statement reads, of the joint declaration of intent between AFD and the Federal Democratic Republic of Ethiopia during the visit of French President Emmanuel Macron in Ethiopia on March 12, 2019. According to the agreement, a 100 million euros financing has been provided by AFD to support the Federal Democratic Republic of Ethiopia for the implementation of its ambitious economic reforms. 85 million euros is provided through a Public Policy concessional loan, and 15 million euros is provided as a grant for the global technical assistance programme, as reported by Newbusinessethiopia.com.

he Public Policy Loan will aim to support the Government of Ethiopia in the implementation of GTP II economic reforms by focusing on the following themes: maximizing finance for development, improving the business environment, and improving the management, transparency and accountability of public enterprises. It will be complementary to the World Bank Ethiopian Growth and Competitiveness Development Policy Financing (DPF).

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