Ethiopia Gets $250M World Bank Boost for Urban Jobs

Millions of Ethiopians in cities are about to get new opportunities for work and financial support, thanks to a major investment in their future.

Ethiopia signed a $250 million financing agreement with the World Bank on January 14 to expand the Urban Productive Safety Net and Jobs Project. The program focuses on helping low-income families improve their earnings while opening doors for young people and women to enter the job market.

The funding will create labor-intensive public works projects that put people to work immediately. It will also provide direct cash grants to vulnerable households and launch youth employment programs tied to Ethiopia's national job creation strategy.

For the first time, the project will extend support to refugees and host communities in selected cities. This means both Ethiopian residents and displaced families will access cash transfers and services designed to help them build stable lives and contribute to their communities.

The timing matters because Ethiopia's cities face mounting pressure from rapid urbanization and a young, growing population. While the country has seen strong economic growth recently, jobs haven't kept pace with the number of people moving to urban areas looking for work.

State Minister of Finance Semereta Sewasew and World Bank Division Director Maryam Salim signed the agreement virtually, cementing a partnership that spans multiple development areas including infrastructure, health, and education.

The Ripple Effect

This investment does more than create individual jobs. When families receive steady income, children stay in school longer. When young people find work, neighborhoods become more stable. When refugees integrate economically, entire communities grow stronger together.

The safety net approach also prevents families from falling into deeper poverty during crises, breaking cycles that can span generations. By combining immediate support with long-term employment opportunities, the program addresses both urgent needs and lasting change.

Ethiopia's urban transformation is happening whether the country is ready or not, but this funding helps ensure that growth includes everyone, not just those already positioned to benefit.

Millions of urban Ethiopians now have a stronger foundation to build better futures for themselves and their families.