Ethiopia and UK inked a £115 million Grant Agreements

(EBC; August 08, 2018) - The Federal Democratic Republic of Ethiopia and UK and have signed two grant agreements totaling £115 million on August 08, 2018 in Addis Ababa.

Dr. Abraham Tekeste, Minister of Ministry of Finance and Economic Cooperation and Her Excellency Rt. Penny Mordaunt MP, Secretary of State for International Development and Minster for Women and Equalities have signed the Memorandum of Understandings on behalf of Ethiopia and UK governments respectively.

The agreements indicate £80 million will be used to finance the Ethiopia Jobs Compact programme and the reaming £35 million will be used for the Tax Systems Transformation Programme in the country.

According to the first agreement, the grant will provide to support Ethiopia’s industrialization strategy with an intention of increasing economic opportunities for Ethiopians and refugees residing in the country. It is expected to create up to 100,000 new jobs, of which up to 30,000 will be for refugees residing in the country.

As per the second agreement, the grant will be used to strengthen the domestic resource mobilization capacity of the country by focusing on the transformation of the tax system.

Source: Ministry of Finance and Economic Cooperation