• The World Bank approved $250 million in additional financing on January 14, 2026
• Funds will support urban safety nets, jobs, and inclusion of youth and women
• Ethiopia must create about 1.8 million jobs each year to absorb new workers

Ethiopia’s Ministry of Finance and the World Bank signed an additional $250 million financing agreement on January 14 to strengthen implementation of the Urban Productive Safety Net and Jobs Project.

In a Facebook post \, the ministry said the additional funding would allow the Ethiopian government to step up efforts to improve incomes for the urban poor and support the integration of youth and women into the labor market. Planned interventions include labor-intensive public works programs and subsistence grants for vulnerable urban households. The project also provides for expanded support to refugees and host communities in selected areas, while strengthening social assistance systems through cash transfers and services aimed at facilitating the social and economic reintegration of beneficiaries.

According to World Bank data, Ethiopia’s population was estimated at 132.1 million in 2024. Despite sustained economic growth of 8.1% in 2023/2024, the country continues to face major economic and social challenges, including unemployment. The economy needs to create around 1.8 million jobs each year to absorb new entrants into the labor market. Ethiopia recorded a score of 0.492 on the Human Development Index, according to the 2025 UNDP report, while income per capita stands at $1,020.

On October 27, 2025, the government also launched two programs in partnership with UNFPA and UNDP, covering the 2025–2030 period and totaling $419.34 million. These initiatives aim to accelerate progress toward the Sustainable Development Goals, with a focus on reproductive health, governance, innovation, artificial intelligence, and youth employment.

Ingrid Haffiny (intern)