Abu Dhabi Fund for Development (ADFD) has pledged Dhs 11 billion (US$3 billion) economic aid package to the Ethiopian government during a visit by Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces on Friday.
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. Government officials and senior representatives of the two entities also attended the signing ceremony.
ADFD deposited an amount of Dhs 3.7 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 Dhs 7.3 billion seeks to stimulate the Ethiopian economy and encourage joint investments.
Speaking on the occasion, Mohammed Saif Al Suwaidi said: "Under the wise leadership of the UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan, and the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, ADFD contributes to the UAE’s efforts to assist developing countries in achieving sustainable development and improving socio-economic conditions."
He added: "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."
Furthermore, Mohammed Saif Al Suwaidi noted that the funding will boost the country’s gross national income (GNI) and revitalise key strategic sectors.
ADFD’s contribution to the development of Ethiopia dates back to 2012. Since then, the fund has disbursed Dhs 36.7 million (US$10 million) towards financing the Gedo Fincha-Limlem Peria Road project. The operational 80 km road serves the Oromia Region in the west of the Ethiopian Highlands, facilitating the movement of vehicles and reducing transportation costs.