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The World Bank signed a USD 600 million financing loan agreement with Ethiopia. Sufian Ahmed, Minister of Finance and Economic Development and Guang Zhe Chen, World Bank country director to Ethiopia signed the agreement at a ceremony held at the Ministry of Finance and Economic Development, on Friday, October 31, 2014.According to the agreement, the loan is to be used for the fourth phase of The Productivity Safety Nets Program (PSNP IV). The main objective of the project is to allow people to have access to a safety net or to be able to receive assistance in the event of a disaster. It also provides income and nutrition support to food insecure households in rural Ethiopia.
Guang Zhe Chen said PSNP has shown great progress in reducing food insecurity, malnutrition and vulnerability. The World Bank, in this regard has committed a substantial amount of resources to support the program. I PSNP 4 has also been designed to support building systems for social protection, improved management information systems and efforts to modernize how payments are made, stated Guang Zhe. The PSNP project is going to be achieved through building core instruments and tools of social protection and a disaster risk management system. Delivery of safety nets services and enhanced access to livelihoods. The project will work by introducing a competitive salary scale and other benefit packages to recruit and retain competent technical staff, ensuring communities are consulted on preference for cash, food or mix of cash and food.