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HomeEthiopian NewsSaudi Arabia to provide Ethiopia with $US 140 million loan

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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  1. For the Ethiopian government to provide the social and civil services, it urgently needs money from all sources.

  2. Subject: “Saudi Arabia to provide Ethiopia with $US 140 million loan by borkena
    December 19, 2019”

    Commentary, 20 Dec 2019

    To provide “loan” to one country from another is not a new phenomenon. In any case, it is not done for love. There is a profit motive from both sides. In short, there is no magnanimity in that ‘hand shake’. Both the Lender and Borrower know each other’s desire in that “warm” handshake.

    What does Saudi Arabia want from Ethiopia? Well, well, well no body would dare to answer the question openly. One thing, for sure, that hand shake does not have room for the millions and millions of common poor citizens who try endlessly to feed themselves and their families

    Ethiopia is a country of one hundred and ten million people, the vast majority of whom are struggling to see a flickering shineness of the Day. After all, we are Africans in seemingly eternally backward Africa where some fifty self-appointed individuals horde hundreds of yankee dollar bills in boxes after boxes for their eternal life >>> not knowing that Life on Planet Earth is very limited. I think, I better stop here. THE END

  3. Loan in exchange to what?

    Why so much loan from Saudi Arabia, China and so on all hungry to colonize the poor and enrich the handful selected corrupts? Why not provide opportunity to the millions of unemployed youth and those who have the burning desire to work hard if an environment that is clean from the dirty corruptions. If the corrupts are punished in a court of law Ethiopia will be sufficient in fulfilling its economical supply and demands by providing employment to its people.

    Today the few corrupted riches build hotels in places where it should never be built. Not only they destroyed the beauty of the city but also destroying homes of many families that were there for decades and claiming the building/hotel need roads.

    How did those people get the permission to build a high rising building in areas packed with homes in the first place?


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