French Development Agency to offer EUR 100 mln in loan, grants
Mere months after the state visit by Emmanuel Macron, President of France, the French Development Bank that has the capacity to finance worldwide initiatives worth more than EUR 11 billion a year, is set to offer Ethiopia a combination of a loan agreement and a grant worth EUR 100 million.
At a signing ceremony on Thursday, it was said that this is to complement the declaration of intent signed by France and Ethiopia during the Premier’s visit in March.
According to the French Embassy in Addis, the funds are to be used to finance the “ambitious economic reforms,” the nation has shown. Among the plan, the majority of the gesture is in the form of a loan and only EUR 15 million is given as a grant and that is to be spent on technical assistance programs.
“The 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),” the embassy said in a statement.
The agreement was made official at a signing ceremony attended by Ahmed Shide, the Minister of Finance of Ethiopia and Ignace Monkam-Daverat, the French Agency for Development (AFD) Country Director and Frederic Bontems, Ambassador of France to Ethiopia.
“This Public Policy Loan will be coupled with a grant-funded technical assistance program that would support key reform actors such as the Ministry of Finance, the PPP Directorate General and the Public Enterprise Holding Administration Agency. Part of this technical assistance program will be directly implemented by the Ethiopian Government, while another part will be channeled through Expertise France – the French public agency for international technical assistance – and as a contribution to the Multi-Donor Trust Fund managed by the World Bank,” the statement added.
In related news, Shalework Zewde, the President of Ethiopia is currently in Paris, France attending the FIFA Women’s Football convention. In her maiden speech, she called on more investment in women. This comes after the President attended a Women Deliver convention in Vancouver, Canada and discussed issues of women rights and opportunities in Ethiopia and held an audience with Justin Trudeau, Prime Minister of Canada.