World Bank gives Ethiopia $1B for reforms, trade, and financial stability. IMF unlocks $262.3M after program review approval.
Ethiopia economic reforms have received a major boost following the signing of a $1 billion financing agreement with the World Bank, the country’s Ministry of Finance announced on July 4, 2025. The funding will support efforts to stabilize the financial sector, improve trade competitiveness, and enhance domestic revenue mobilization.
According to the World Bank’s statement, the package includes a $650 million grant and a $350 million concessional loan. Subject to board approval and resource availability, the Bank also expects to provide an additional $5 billion to Ethiopia over the next three fiscal years through its International Development Association (IDA).
This comes on the heels of the International Monetary Fund (IMF) completing its latest review of Ethiopia’s $3.4 billion loan program, unlocking access to a fresh $262.3 million tranche.
The IMF-backed Ethiopia economic reforms include the 2023 floating of the Ethiopian birr, opening up the economy to private investment, and implementing measures to improve debt sustainability.
The IMF emphasized that for Ethiopia to achieve long-term stability, it must continue improving the foreign exchange market, boost domestic revenue, and enhance fiscal transparency.
This combined support from the IMF and World Bank underscores international confidence in Ethiopia’s reform journey. If effectively implemented, these reforms could reposition the country for sustained economic growth and global investment
