Ethiopia gets $350M World Bank financing for its digital ID project
6 hours ago
- #World Bank
- #Digital ID
- #Ethiopia
- The World Bank approved a $350 million finance package to support Ethiopia's digital identity (ID) program, Fayda.
- Fayda, introduced in 2022, has enrolled 3.5 million people in its pilot phase and is set for full rollout in 2024.
- $50 million of the funding is a grant for host communities and refugees under the World Bank's IDA window.
- $214 million is earmarked for inclusive issuance, $68 million for technical infrastructure, and $47 million for infrastructure and service delivery.
- Ethiopian banks will mandate Fayda as the primary ID for financial transactions by 2024 to improve financial inclusion.
- Ethiopia's foreign reserves are depleted, with a $28.2 billion debt portfolio, and recently missed a Eurobond repayment.
- The country is seeking an emergency relief package from the IMF and has secured temporary debt waivers from Chinese and bilateral creditors.