Ethiopia - Country Partnership Framework for the Period FY2027-FY2036 : Supporting Documents

Overview & Synopsis

Ethiopia is navigating a challenging transition marked by macroeconomic reforms, exposure to external shocks, climate stress, conflict and displacement, and persistent human capital and service delivery gaps. In the coming years, the World Bank Group will focus on enabling a private sector-led growth model that creates more and better jobs by strengthening capable economic institutions, deepening macroeconomic stabilization, improving the business environment, and safeguarding essential social services. Support will prioritize reforms that enhance exchange rate and monetary policy credibility, improve fiscal sustainability, and increase regulatory predictability in areas such as competition, land and customs administration, and public accountability. The Bank will help lower trade and logistics costs through customs modernization, corridor efficiency, multimodal integration, and pro-competition measures, while improving energy and digital infrastructure reliability, advancing Mission 300, and widening market access. Finance for productive firms will be expanded through capital market development, stronger credit infrastructure and risk pricing, and instruments that crowd in private capital, with a focus on small and medium enterprises and women and youth-owned businesses. Sector engagements will emphasize agribusiness, light manufacturing, domestic pharmaceuticals, and complementary housing, operationalized through platforms such as AgriConnect and AIM2030 to strengthen value chains, standards, procurement, and firm upgrading. To build a skilled workforce, the Bank will support stronger foundational learning, industry-linked skills pathways, and systems that align incentives and data with employability and private demand. Health and nutrition investments will expand access to quality primary care, bolster resilient delivery systems, promote nutrition-sensitive agriculture, and improve water, sanitation, and hygiene, particularly in underserved, climate-vulnerable and conflict-affected areas. Cross-cutting priorities include resilience to climate and fragility risks, regional integration through AfCFTA, gender inclusion, and adaptive engagement that adjusts the mix and geographic focus of support as conditions evolve, with IDA, IFC, and MIGA mobilizing private solutions where reforms enable competitive markets.