The World Bank Board of Executive Directors on Thursday approved funding of 150 million USD to the Government of Ethiopia, the Bank said.

According to World Bank website, the total amount 108.4 million USD is given as credit and the remaining 41.6 million USD as grant.

The Bank approved the fund to support increased agricultural productivity, enhanced market access for key crop and livestock products and improved food security.

The fund is secured from the International Development Association (IDA), the World Bank’s fund for the world’s poorest countries and in collaboration with other donors.

The statement said with the fund, the Agricultural Growth Program (AGP) will initially target 83 high-potential woredas (districts) with increased participation of farmers, particularly women and youth, in defining the support they need to raise productivity and access markets.

Agriculture in Ethiopia is the largest contributor to overall economic growth and poverty reduction. Accounting for about 45 percent of national GDP, almost 90 percent of the goods exports and 84 percent of the labor force, agriculture remains the economy's most important sector.

World Bank Sector Manager for the Africa Region Agriculture Department, Karen Brooks said “This project will bring much-needed attention to a critical sector that can help the Government of Ethiopia address food security, increase its resilience to climate variability, and promote jobs and small business development,”.

Developing the agricultural sector is central to the Government’s development strategy and an important element of the current World Bank Country Assistance Strategy (CAS) for Ethiopia.

In many countries in Africa, the World Bank is working with development partners to advance responsible agricultural investments that respect rights, livelihoods, and resources. Other development partners are expected to complement this World Bank-financed project in Ethiopia to create a harmonized and comprehensive program of donor support for agriculture.

The project will be implemented by the Ministry of Agriculture and Rural Development.

“We are encouraged by the engagement of so many stakeholders: farmers, their organizations, the private sector, as well as other government and non-government institutions. We expect significant results for millions of farmers and their communities. The AGP will also contribute to Ethiopia’s goals to reduce poverty and reverse environmental degradation,” said Achim Fock, Senior Economist in the World Bank Africa Region Agriculture Department.

ENA