(Ecofin Agency) - Though robust, Ethiopia's economy faces many challenges that have constrained growth in recent years. With the support of international partners, authorities are pursuing several policies to improve its resilience. 

Ethiopia and the World Bank signed, Tuesday, two grant agreements amounting to US$745 million to strengthen the health sector and control floods.

In the country, the COVID-19 crisis, climate disasters, and devastating conflicts have significantly impacted the health sector and millions of residents. In addition, the magnitude, frequency, and intensity of floods in the country have increased in recent years. According to the World Bank, in 2020 alone, floods affected nearly one million Ethiopians, displaced nearly 300,000, and killed 288 people. They also cost the country nearly US$358 million in damaged property, infrastructure, and cropland, and exacerbated the already critical humanitarian situation by impacting agriculture and livestock.

In that context, the first grant of US$445 million will fund the implementation of the Primary Health Care Services Strengthening Program, improving essential and equitable health care services, such as key reproductive, maternal and child health, and nutrition services nationwide. The program, which will also extend to conflict-affected areas, particularly targets women and children, who are the most vulnerable.

"The health project will provide over 22 million women and children, including those in conflict-affected areas and Internally Displaced Persons, with lifesaving health services such as immunization, family planning, skilled birth, and antenatal and postnatal care. It will also restore facilities that were damaged by conflict, enabling millions of Ethiopians to get access once again to the services they direly need," indicated Ousmane Dione, World Bank Group Country Director for Ethiopia.

The second grant will fund the implementation of a flood management project. That project aims to urgently build the country's resilience to climate-related shocks and improve its capacity to better respond to and manage disasters and flood risks. It will protect vulnerable communities and build their long-term resilience to climate-related risks, according to Peter Ellis, the World Bank's Global Practice Leader for Urban, Resilience and Land.

Let's note that although Ethiopia has experienced robust growth over the past decade (an average of 10.2% per year between 2011 and 2015 and 7.8% between 2016 and 2021), many macroeconomic challenges remain. For example, Covid-19, conflicts, and a locust invasion have slowed growth from 8.2% in 2019-2020 to 6.3% in 2020-2021, according to the African Development Bank (AfDB).

Jean-Marc Gogbeu