During its 57th regular session held today, the Council of Ministers approved a comprehensive series of decisions aimed at bolstering economic stability, modernizing infrastructure, and upgrading public service delivery. The legislative package features major international financing agreements alongside long-term policy shifts designed to address current development challenges.
Central to the financial measures is the unanimous approval of a 637.5 million SDR loan agreement signed with the International Development Association. Directed to the House of Peoples’ Representatives for a final vote, the funding is distributed across three priority areas: 437.4 million SDR for sustainable and inclusive growth, 145.5 million SDR for community-based landscape management, and 54.6 million SDR for climate-resilient irrigation. To further diversify its external funding options, the Council also forwarded a draft proclamation authorizing Ethiopia to join the New Development Bank as a member, which is expected to secure alternative resources for national infrastructure and macroeconomic stability.
On the domestic front, the Council enacted immediate structural changes by adopting two major policy frameworks. The newly introduced Urban Development Policy completely replaces a system that had been in place for the past two decades, aiming to remedy existing gaps, cement recent municipal reforms, and improve urban-rural integration. Alongside this, a new Construction Industry Policy has taken effect to enhance sector productivity and align domestic building practices with advancing global technology and urbanization trends.
The Council also took steps to improve the operational capacity of public institutions by reviewing and approving new service fee regulations. This adjustment affects the Ministry of Water and Energy, the Ethiopian Archives and Library Service, and the Educational Assessment and Examinations Service. By strengthening the internal revenue-generating capabilities of these organizations, the revised fees are designed to provide the resources necessary to deliver higher quality public services.
