Abu Dhabi – Mubasher: The Abu Dhabi Fund for Development (ADFD) announced that it has allocated AED 11 billion ($3 billion) in an economic aid package to Ethiopia.

Both Mohammed Saif Al Suwaidi, director general of ADFD, and Teklewold Atnafu, governor of the National Bank of Ethiopia, signed a memorandum of understanding (MoU) in the Ethiopian capital of Addis Ababa.

The package aims at supporting the Ethiopian government’s strategy concerning sustainable socio-economic development.

ADFD, which is the national entity for the emirate of Abu Dhabi for providing development aid, will deposit an amount of AED 3.7 billion of the package with the National Bank of Ethiopia in order to enhance the country's liquidity and foreign exchange reserves with the central bank.

Meanwhile, the remaining amount will be allocated to stimulating the Ethiopian economy and encouraging joint investments, the ADFD said in a statement.

"In addition to helping Ethiopia overcome the challenges it faces, the funding will encourage the UAE private sector to enter the Ethiopian market and benefit from the investment opportunities it offers,” ADFD's Al Suwaidi commented.

He further noted that the financing will help the African country boost its gross national income.

Earlier in 2018, the UAE provided an aid package of AED 36.7 million to Ethiopia to finance the Gedo Fincha-Limlem Peria Road project.