Ethiopia Reinforces Poverty Reduction Reforms with ADF Support
In order to tackle the challenges posed by these problems, the African Development Fund (ADF) is partnering with the Ethiopian Government in its efforts to enhance sustainable development and reduce poverty. The Fund has approved a loan of 60 million Units of Account (US$ 88 million) aimed to support the implementation of the Government’s Sustainable Development & Poverty Reduction Programme.
The program is expected to result in rapid and sustainable economic growth by commercializing smallholder agriculture, securing land tenure, increasing the contribution of the private sector and enhancing the competitiveness of the economy in the context of globalization.
It will contribute to human development by increasing the budgetary funding of key social services in order to expand access to primary education, improve the health status of the population and expand access to safe drinking water and adequate sanitation facilities.
Women will be among the primary beneficiaries of improved access to basic social service delivery, the commercialization of agriculture and security of land tenure.
The Bank Group’s Operations in Ethiopia started in 1975. To date, the Group has committed a total of US$ 1.9 billion in 92 operations in the country.
The ADF contribution
The ADF will contribute to the reform policy in order to help the Government achieve the SDPRP goal of attaining higher and stable growth and reducing the vulnerability of poor people by focusing on the following thematic areas:
- Create an enabling environment for private sector development and strengthen the financial sector;
- Improve land tenure security system, with more flexible and transferable user rights;
- Strengthen the public fiduciary framework to ensure that resources for poverty reduction are utilized effectively.