Saudi Arabia to provide Ethiopia with $US 140 million loan

Ethiopian government did not disclose the terms of the loan from Saudi Arabia

December 19, 2019

Saudi Fund for Development is making available $US 140 million to Ethiopia in the form of loan, Ethiopian News Agency (state media)reported on Thursday.

Saudi Arabia’s financial aid came after Vice Chairman and Managing Director of the Board of Directors of SFD, Khaled bin Sulaiman Al Khudair, visited Ethiopia and met with senior Ethiopian government officials including the prime minister Abiy Ahmed on Thursday.

Ethiopia’s Minister for Finance, Ahmed Shide, and Khaled bin Sulaiman Al Khudair have signed the loan agreement in the capital Addis Ababa. It is the Prime Minister himself who presided over the signing ceremony. 

His office disclosed that “Prime Minister Abiy also presided over the signing of two concessional loan agreements with Saudi Fund for Development amounting to 140 million USD to support road, water supply and sanitation development…”

On December 10, more than 150 businessmen from Saudi Arabia participated in a business forum was organized in the capital Addis Ababa.

According to ENA report, part of the fund is to be used for infrastructure development work underway in western Ethiopia and the rest will be channeled towards  the implementation of One WASH program. It is a program “… designed to strengthen provision of water, and sanitation and hygiene in urban and rural areas that will continue until 2023” 

Last week, the International Monetary Fund (IMF) and The World Bank (WB) disclosed a  $6 billion dollars loan to Ethiopia to support “Home Grown Economic Growth” program. 

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