Current World Bank portfolio sits at USD 16 billion
Ethiopia is set to seek an indicative USD 13.4 billion in World Bank IDA financing over the next decade under a new Country Partnership Framework, with access to the financing tied to the country's reform progress, performance, implementation capacity and the availability of IDA resources.
The World Bank's Country Partnership Framework for Ethiopia that would last from 2027 to 2036 sets the indicative allocation across multiple IDA cycles.
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It also notes that actual Performance Based Allocation volumes will be determined annually based on available IDA resources, the number of eligible countries and country-specific performance, income and population factors.
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The proposed allocation comes as Ethiopia's current World Bank portfolio stands at approximately USD 16 billion, comprising USD 13 billion in national IDA financing, USD 2.5 billion in regional IDA operations and another USD 940 million in trust funds, according to the document.
The framework shows that future World Bank financing will be based on Ethiopia's reform progress, country performance, implementation capacity and available resources.
The document makes it clear that if reform momentum stalls, policy frameworks weaken or fragility challenges to the enabling environment increase, financing will be revised through changes to portfolio composition or objectives.
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It also hints at the possibility of a gradual transition toward blend status and access to International Bank for Reconstruction and Development (IBRD) resources based on improved macroeconomic stability.
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On the other hand, the document states that if reform momentum slows, the Bank would slow Development Policy Operation financing and place greater emphasis on human development outcomes.
The new framework also places private capital at the center of Ethiopia's job-creation strategy, setting a target to mobilize USD 10.9 billion in private capital over ten years, up from a 2025 baseline of USD 6.9 billion. The five-year target is set to be USD 8.9 billion.
Furthermore, the CPF targets a sharp increase in Ethiopia's domestic tax revenue with expectation of a rise from a baseline of approximately eight percent of GDP to 12 percent within five years and 15 percent within ten years.
The tax target is accompanied by reforms intended to broaden the tax base, improve compliance and strengthen tax administration, customs and digital systems.
The World Bank framework calls for stronger budget discipline and improved oversight of fiscal risks arising from state-owned enterprises and contingent liabilities.
