Italy and the IFC of the World Bank Group (WBG) signed an agreement for a financial contribution to the initiative “Promoting and Investing in the Private Sector”, pillar of the “Multi Donor Initiative for Private Sector Development in Ethiopia” (MDI-PSD).
The new 500,000 Euros grant from the Italian Agency for Development Cooperation to the multi-donor trust fund supports access to finance for the private sector especially for the small and medium size businesses, stated a release the Embassy of Italy in Ethiopia sent to The Ethiopian Herald.
Speaking at the signing ceremony, Ambassador of Italy to Ethiopia, Giuseppe Mistretta, said Italy has been a long-term partner of Ethiopia in the support of private sector.
“With this additional financial grant, Italy is re-confirming its commitment to Ethiopian economic development”
He said Italy’s support and partnership include: agricultural value chain, agro-industry, leather sector, access to finance for women entrepreneurs, development of integrated agro-industrial parks and the improvement of the business climate.
Head of Development Partner Relations for Sub-Saharan Africa of IFC, Eva Bakonyi, said: “IFC’s most important mandate is to create and develop markets for the private sector in developing countries.
“In Ethiopia IFC is assisting the Government in creating a better business environment, financial infrastructure and providing financial and technical assistance for the private sector.”
According to her, Italy’s new contribution will boost opportunity to the multi-donor initiative to contribute to the country’s private sector development.
Head of Italian Agency for Development Cooperation in Addis Ababa, Ginevra Letizia, for his part said: “Italy is proud to be part of the MDI-PSD initiative which has already contributed to the improvement of the business climate in the Country, and envisages also the improvement of access to finance for small and medium enterprises”.
The pillar “Promoting and Investing in the Private Sector,” of the multi-donor initiative, supports access to finance activities for the private sector, and in particular for small and medium enterprises.
This initiative, intends to increase jobs in Ethiopia, especially taking into consideration that SMEs account for the majority of new jobs and employment opportunities in the Country.
Italy has already contributed to the “Investment Climate Reform” Pillar with 900.000 Euros earlier.
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