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WASHINGTON – The World Bank Group Board of Executive Directors today approved a $ 400 million grant from the International Development Association to the Government of Ethiopia. The grant will support Ethiopia’s efforts to improve the incomes of the urban poor and promote the inclusion of disadvantaged urban youth in the labor market under the Urban Productive Safety Nets and Employment Project (UPSNJP).
“Poverty and limited access to economic opportunities remain serious problems in Ethiopia’s urban areas, and the COVID-19-induced economic slowdown has further aggravated the situation. Building on the successes of the Network Project Urban Productive Security funded by the World Bank, UPSNJP will provide social protection and employment-related services for 816,000 beneficiaries in around 83 cities across the country, “said Ousmane Dione, World Bank Country Director for Eritrea, Ethiopia, Sudan South and Sudan.
Social protection systems have played a key role in reducing poverty in Ethiopia and are a critical component of the country’s long-term development strategy. The need for effective social safety nets and stable jobs for the urban poor has been further highlighted by the disruptions posed by the current COVID-19 crisis.
In order to provide short-term income support, as well as medium-term livelihoods and financial independence, the project will include public works activities with a built-in strategy for graduation, including for refugees and communities. host. In addition, the project will provide direct cash transfers for the elderly, disabled and pregnant mothers, as well as specialized social services for homeless children and homeless adults, complementing a dynamic safety net system that responds to the diverse needs of the population. . urban poor.
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To address the problem of urban unemployment, especially among young people, the project will support an apprenticeship program to help them gain valuable work experience as a path to regular employment. The project will also help strengthen employment and intermediation services through the development of policies and investments in the infrastructure of the Public Employment Services.
“Given the economic opportunities in urban areas, and based on the Government’s priority for inclusive growth, it is important to combine safety nets with support for livelihoods and job opportunities, especially in a country like Ethiopia. , where young people represent the majority of its population, “said Ayuba Sani Hussein, senior specialist in social protection and leader of the joint project team.
