@World_Bank – Ethiopian Business Review

EBR_News Mar 12, 2026

Ethiopia ranked as the second-largest recipient of World Bank-executed trust fund disbursements between fiscal years 2019 and 2023, receiving $132 million, according to a new country program evaluation for Indonesia published by the World Bank’s Independent Evaluation Group.

The report, released February 11, 2026, placed Ethiopia behind only Indonesia ($206 million) and ahead of Afghanistan ($101 million), India ($96 million), and Vietnam ($91 million) in trust fund receipts. The figures reflect sustained international financing flows to Ethiopia’s development programs despite global economic pressures.

The document also confirmed Ethiopia’s position as the second-largest recipient of overall World Bank disbursements globally between 2010 and 2022, trailing only Nigeria. Indonesia ranked third with approximately $9.3 billion over the same period.

The trust fund rankings complement a much larger World Bank portfolio in Ethiopia. According to Ministry of Finance announcements, Ethiopia’s active World Bank portfolio stands at approximately $15.5 billion, with $7 billion ready for immediate disbursement. Ethiopia accesses over $2 billion annually in concessional financing from the International Development Association, half of which is provided as grants.

In July 2024, Ethiopia secured an additional $1.5 billion package through the First Sustainable and Inclusive Growth Development Policy Operation, comprising a $1 billion grant and $500 million loan to support economic reforms. More recently, the government signed a $1 billion financing agreement under the Second Sustainable and Inclusive Growth Development Policy Operation in 2025, following an IMF disbursement of $262.3 million.

As of late 2025, the World Bank’s Ethiopia portfolio consists of 45 operations with total commitments of $16.15 billion, spanning agriculture, health, education, energy, transportation, digital development, and trade logistics. The International Finance Corporation maintains an investment portfolio of $357 million, while the Multilateral Investment Guarantee Agency holds $1.03 billion in guarantees primarily covering the telecommunications sector.

Ethiopia and Uganda have signed a sweeping air service agreement that significantly liberalizes air travel between the two nations. The deal was finalized during the 4th Ethiopia-Uganda Joint Ministerial Commission meeting held at Addis Ababa’s Skylight Hotel this week.

The landmark agreement eliminates multiple restrictions that previously governed air transport between the countries. It grants airlines from both nations unrestricted access to routes, destinations, and traffic rights. The pact also removes limitations on aircraft types and allows for greater airline representation in each other’s markets.

Ethiopian Civil Aviation Authority Director General Getachew Mengiste and Uganda’s Transport Minister Fred Byamukama formalized the agreement. The signing represents a concrete step toward implementing the African Union’s Single African Air Transport Market (SAATM) initiative, which aims to create a unified air transport market across the continent.

Industry analysts suggest the agreement could lead to increased flight frequencies, more competitive fares, and enhanced connectivity between Ethiopia and Uganda. The deal is particularly significant for Ethiopia’s aviation sector, as the country seeks to expand its position as Africa’s leading air transport hub.

The liberalized air service arrangement comes as African nations work to boost intra-continental trade and tourism through improved air links. Both Ethiopia and Uganda stand to benefit from increased business travel, cargo operations, and passenger traffic under the new framework.

Aviation experts note that such agreements typically lead to increased airline competition and service improvements. However, successful implementation will depend on infrastructure development and regulatory harmonization between the two nations.

Ethiopia Ranked Second-Largest Recipient of Trust Fund Disbursements: World Bank Report

Ethiopia and Uganda Liberalize Air Transport with New Bilateral Agreement