The World Bank has officially announced a major policy shift in its upcoming 10-year Country Partnership Framework for Ethiopia, spanning from 2027 to 2036. The international financial institution is redirecting its primary focus toward creating job opportunities for the two million young people entering the country’s workforce annually. Consequently, massive state-backed infrastructure projects that previously held priority—including large-scale power plants, asphalt highways, and tourism developments—have been entirely excluded from the new strategic plan.
Under this recalibrated framework, the bank aims to address immediate operational efficiency rather than expanding heavy infrastructure. Instead of financing the construction of new power-generating plants, funding will be channeled into expanding transmission lines to curb persistent power outages across the nation. Similarly, resources for asphalt road construction will pivot toward developing rural feeder roads, a move intended to directly support local farmers and boost agricultural supply chains.
The strategy also introduces targeted financial backing for essential social and economic sectors. The World Bank plans to subsidize domestic pharmaceutical manufacturing to improve healthcare self-sufficiency and fund affordable housing projects to meet growing urban demands. However, the bank noted a critical hurdle to the plan’s long-term success: the current low quality of education in Ethiopia, which could potentially limit the workforce’s readiness for these new economic opportunities.