Ethiopia: World Bank signs $250m deal to expand urban jobs
Ethiopia has secured a new $250 million financing deal with the World Bank to expand urban employment opportunities and income support for low-income households, as reported by APA News on January 15th.
These funds will help in expanding the Urban Productive Safety Net and Jobs Project, one of the government’s main programmes aimed at reducing urban poverty and improving access to work, especially for young people and women.
The Urban Productive Safety Net and Jobs Project is seen as a key part of Ethiopia’s wider reform agenda, as cities continue to grow and demand for jobs and basic services increases. Interestingly, Ethiopia’s inflation rate has been dropping, but daily costs continue to rise.
In a statement, Ethiopia’s Ministry of Finance said the funding will be used to strengthen employment opportunities in cities, where rising living costs and rapid population growth have put pressure on low-income families. The project focuses on helping the urban poor earn stable incomes while developing skills that enhance their chances of securing long-term employment.
Key areas of support include labour-intensive public works, which offer short-term jobs to vulnerable households, as well as livelihood grants designed to help people start or improve small income-generating activities. The programme also places strong emphasis on youth employment, in line with Ethiopia’s wider national job creation plans.
Women and young people will be prioritised under the expanded scheme, as they face some of the biggest barriers to employment in urban areas. Officials said targeted support is needed to address unequal access to jobs, skills training and financial resources.
According to a report by Ethio Negari, the project will also extend assistance to refugees and host communities in selected cities. This reflects Ethiopia’s broader approach to inclusive urban development, where support systems aim to reach both displaced populations and the communities that host them.
Beyond job creation, the programme includes cash transfers and additional services meant to support social and economic reintegration. These measures are designed to help households cope with economic pressure while building greater resilience over time.
The agreement was signed virtually by State Minister of Finance Semereta Sewasew and Maryam Salim, the World Bank’s Division Director for Ethiopia, Eritrea, Sudan and South Sudan.
Officials said the new financing highlights the World Bank’s continued backing of Ethiopia’s efforts to strengthen urban social protection systems. The bank has long supported development projects in the country, with funding across sectors such as infrastructure, health, education and social safety nets.
APA News, Ethio Negari, Maghrebi.org
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