Ethiopia and the World Bank signed loan agreements amounting to $200 million, aimed at supporting the implementation of Ethiopia's digitization program. Inking the agreement were Ahmed Shide, Ethiopia's Minister of Finance, and Ousmane Dione, World Bank's Country Director.
The projects to which the loan applies are to be implemented from April 2021 to October 2026.
During the signing of the agreement, Mr. Ahmed said the financing will be a direct contribution to Ethiopia’s digitization strategy, which pursues an inclusive digital economy approach that will catalyze Ethiopia’s broader development vision set out in the ten-year perspective plan. The minister also pointed out that the project will also contribute to job creation by helping achieve an all-inclusive digital economic plan for Ethiopia. Since it will support information technology and telecommunication sectors, as well as enhance participation of private enterprises, it will be instrumental in creating mass job opportunities, he further noted.
The purpose of the loan will be three-fold, the Ministry noted. For one, it will help strengthen policy-making of the digital economy, used for effective regulation of the telecommunications sector, and the development of digital entrepreneurship.
Furthermore, the loan will be used for developing the government's capacity in delivering digital services through connecting targeted public institutions and educational institutions to a broadband network.
Finally, it will be used for nurturing digital entrepreneurship and incentivizing digital businesses to train, provide digital devices, and mobilize Ethiopians to participate in the digital economy, thereby generating income and securing jobs.
Sources: The Ethiopian Herald, ENA
