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World Bank grants $745 million to Ethiopia

World Bank grants $745 million to Ethiopia

The World Bank Group on Tuesday granted $745 million to Ethiopia. In recent years, millions of Ethiopians have been impacted by multiple crises including COVID-19, climate-related disasters, and devastating conflict, the Bank said in a statement.

“These crises significantly disrupted the delivery of essential health services, undermining Ethiopia’s progress in health outcomes and service delivery achieved over the past decade. Nearly 24 million people in conflict affected areas are without access to adequate health services. In recent years, flood events in Ethiopia have significantly increased in magnitude, frequency and intensity. In 2020 alone, floods affected nearly one million Ethiopians, displaced nearly 300,000 and caused 288 fatalities.”

According to a recent assessment conducted by the World Bank, floods in 2020 alone cost Ethiopia nearly $358 million in damage to property, infrastructure, and cropland. The impact of floods on agriculture and livestock has aggravated the already serious humanitarian situation. Unless swiftly addressed, these developments will continue to undermine economic and social development.

To support Ethiopia’s people as they face ongoing challenges, the World Bank Group (WBG) has adopted a more people-centered approach (MPCA) to its program in Ethiopia with a strong focus on meeting basic needs and providing basic services to the vulnerable. In line with its strategy, the World Bank Group’s Board of Executive Directors today approved two projects:

The Ethiopia Program for Results for Strengthening Primary Health Care Services Project financed through a $400 million grant from the International Development Association (*IDA) and $45 million grant from the Global Financing Facility (GFF) aims to improve essential and equitable health care services such as key reproductive, maternal and child health as well as nutrition services nationwide for the people of Ethiopia, including in conflict affected areas, and especially for women and children, who are the most vulnerable. The implementation of the project in conflict-affected areas will be conducted through a third-party implementing agency with proven access into these hot spots.

“The health project will provide over 22 million women and children, including those in conflict affected areas and Internally Displaced Persons, lifesaving health services such as immunization, family planning, skilled birth, antenatal and postnatal care. It will also restore facilities that were damaged by conflict, enabling millions of Ethiopians to get access once again to the services they direly need,” said Ousmane Dione, World Bank Group Country Director for Eritrea, Ethiopia, South Sudan, and Sudan.

The Flood Management Project (FMP) financed by a $300 million grant from the International Development Association (*IDA) is geared towards urgently enhancing Ethiopia’s resilience to climate-related shocks, as well as improve its ability to better respond to and manage disasters and flood risks.

“Floods have a disproportionate impact on the poorest and most vulnerable Ethiopians. When floods ensue, people often lose their assets and livelihoods, causing them to fall deeper into poverty. This investment in flood management is part of our effort to protect vulnerable communities and boost their long-term resilience to climate related risks,” said Peter D. Ellis, Practice Manager for the World Bank’s Urban, Resilience and Land Global Practice.

The FMP seeks to address Ethiopia’s underlying Disaster Risk Management (DRM) challenges, water resources management, and vulnerability to climate shocks by tackling urgent flood protection needs in high-risk areas. It supports efforts to build the requisite foundations to improve the DRM systems for the longer-term disaster and climate resilience of the country.

Specifically, the project aims to increase the resilience of communities, and mitigate the catastrophic impact of floods on their livelihood, by building the capacity of institutions and improving their ability to deliver quality services. Additionally, the project seeks to improve the quality of hydrological and meteorological services and improve flood early warning systems. Nearly 34 million people living in poor communities in the priority basins of Awash, Omo, and Rift Valley Lakes basins are expected to benefit from FMP.

The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.

IDA is one of the largest sources of assistance for the world’s 74 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries.

Since 1960, IDA has provided $496 billion to 114 countries. Annual commitments have increased steadily and averaged about $34.7 billion over the last three years (FY20-FY22), with about 70 percent going to Africa.


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