Abu Dhabi Fund for Development (ADFD), the national entity for development aid, has allocated a AED11 billion ($3 billion) economic aid package to the Ethiopian government to support sustainable socio-economic development.
ADFD said it has deposited an amount of AED3.7 billion in the National Bank of Ethiopia to bolster the country's fiscal and monetary policy, as well as to enhance the liquidity and foreign exchange reserves of its central bank.
The remaining AED7.3 billion seeks to stimulate the Ethiopian economy and encourage joint investments, state news agency WAM reported.
Mohammed Saif Al Suwaidi, director general of ADFD, and Teklewold Atnafu, governor of the National Bank of Ethiopia, signed a memorandum of understanding (MoU) outlining the terms of the funding in Addis Ababa, the capital of Ethiopia.
Al Suwaidi said: "In addition to helping Ethiopia overcome the challenges it faces, the funding will encourage the UAE private sector to enter the Ethiopian market and benefit from the investment opportunities it offers."
He added that the funding will boost the country’s gross national income and revitalise key strategic sectors.
Atnafu praised ADFD’s role in the UAE’s ongoing efforts to support Ethiopia’s national priorities, adding that the Ethiopian government welcomes joint investments with the UAE’s investors across diverse fields.
ADFD’s contribution to the development of Ethiopia dates back to 2012. Since then, the Fund has disbursed AED36.7 million towards financing the Gedo Fincha-Limlem Peria Road project.
The operational 80km road serves the Oromia Region in the west of the Ethiopian Highlands, facilitating the movement of vehicles and reducing transportation costs.
Since its inception in 1971, ADFD has financed development projects valued at AED80 billion in 88 countries around the world.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.