Ethiopia receives World Bank loan to create jobs

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Ethiopia on Tuesday received a $250 million dollar loan from the World Bank to finance the implementation of a competitiveness and job creation project in the country.
The agreement intends to support Ethiopia’s efforts of creating new jobs and increase competitiveness in the light of a growing manufacturing sector through the development of industrial zones in Addis Ababa and enhancing linkages with the local economy.

State Minister of Finance and Economic Development, Ahmed Shide said the establishment of industrial zones will spur both foreign direct and domestic investment to Ethiopia.

The country is now “establishing industrial zones to use as a platform for catalysing investment and job creation, with a focus on export-led manufacturing,” he said, along with tackling cross-cutting constraints that the private sector face.

The project will provide large and medium-sized firms with new, serviced industrial land and buildings, including water, electricity, and transport connections, and with a one-stop shop to reduce the transaction costs of doing business.

It will also target small to medium enterprises that will act as local suppliers for the light manufacturing sector, as well as sector institutes that will be involved in project implementation and in developing skills and training of workers with requisite skills.

“The project will help strengthen government’s jobs agenda by drawing lessons learnt from global practices, as well as attracting new investors,” said Guang Zhe Chen, World Bank’s country director for Ethiopia, on Tuesday.

Following the bank’s board of executive directors’ approval of the credit last week, the bank said drawing on the lessons learnt from global practices would be ideal for Ethiopia in regard to its industrial zones programme and jobs agenda.

“The project will benefit people who will be employed as a direct consequence of creation of new jobs in the targeted zones,” Asya Akhlaque, a World Bank expert, said.

“The majority of the beneficiaries are expected to be women employed in the garment and shoe industries that initially set up business in the project area,” Asya said

Source The African Report