Ethiopia, UK sign £115m grant agreements
(journalducameroun)—-Ethiopia and the UK have signed grant agreements amounting to £115 million to finance the Ethiopia Jobs Compact programme and Tax Systems Transformation Programme (TSTP) in the east African nation.The grant agreements were signed on Wednesday by Ethiopia’s Minister of Finance and Economic Cooperation, Dr Abraham Tekeste and UK International Development Secretary, Penny Mordaunt.
According to the agreements; £80 million will be used to finance the Ethiopia Jobs Compact programme. The reaming £35 million will be used for the Tax Systems Transformation Programme (TSTP) in the country.
According to the first agreement, the grant will be used to support the Ethiopia’s industrialisation strategy with an intention of increasing economic opportunities for Ethiopians and refugees residing in the country.
The programme is expected to create up to 100,000 additional jobs, of which up to 30,000 will be for refugees residing in the country.
As per the second agreement, the grant will be used to strengthen the domestic resource mobilization capacity of the country by focusing on the transformation of the tax system.
The programme’s overall goal is increasing tax revenue, improving the business operating environment, ensuring tax does not overburden the poor and improving compliance in relation to the tax system in Ethiopia.