Loan Agreement with Arab Bank for Youth Employment
During its regular session on June 3, 2025, Ethiopia’s House of People’s Representatives (HPR) approved a loan agreement with the Arab Bank for Economic Development in Africa (ABEDA). The agreement provides $49.55 million in financing to support integrated agricultural industrial parks and create job opportunities for the youth. Government Chief Tesfaye Beljige told the HPR,
“The loans and financial assistance obtained from the Arab Bank will enhance the economy through job creation.”
Details of the ABEDA Financing
The funds will be disbursed in two phases: $20 million in the first phase and $29.55 million in the second. The loan carries a five-year grace period and a 20-year repayment term. The money will support irrigation projects on 8,000 hectares of land, including the construction of irrigation tunnels, water reservoirs, and distribution systems, aimed at boosting productivity around agricultural industrial parks. Finance State Minister Eyob Tekalign noted,
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“The finance will create conducive situation for industries to purchase inputs from farmers in surrounding areas.”
Health Services Support from IDA
In the same session, the HPR also endorsed a loan agreement with the International Development Association (IDA), part of the World Bank Group. This financing will focus on enhancing integrated and technology-assisted health services for women and girls, aiming to improve healthcare access and resilience through targeted interventions.
Focus on Sustainable Development
These agreements reflect Ethiopia’s ongoing efforts to drive economic growth and social development through international partnerships, addressing key areas like youth employment and healthcare while promoting sustainable agricultural and industrial progress.
Source: ENA
