Council of Ministers Approves Key Financial and Development Policies

Addis ababa: The Council of Ministers has passed a series of crucial decisions following deliberations on multiple issues during its 57th regular session.According to Ethiopian News Agency, the Council first examined three financial support and loan agreements with the International Development Association (IDA). The agreements include a loan of 437,400,000 SDR for a sustainable and inclusive development policy, 145,500,000 SDR for a community-based land management program, and 54,600,000 SDR for the Climate-Resilient Irrigation Development for Sustainable Productivity Project. The Council confirmed that all three agreements align with the country's loan policy and unanimously decided to submit the draft proclamations ratifying these agreements to the House of People's Representatives.The Council also reviewed draft regulations concerning service fees for services provided by the Ministry of Water and Energy, the Ethiopian Archives and Library Service, and the Educational Assessment and Examination Servi ce. These drafts aim to enable the institutions to cover service delivery costs through internally generated revenue from service-user fees, ensuring quality services are matched to users' capabilities. After thorough discussion, the Council unanimously agreed to incorporate additional inputs and to implement the regulations from the date of their publication in the Federal Negarit Gazette.Further, the Council evaluated a draft proclamation for Ethiopia's accession to the New Development Bank. Accession is expected to provide Ethiopia with alternative financing sources for national development, enhance infrastructure development, support macroeconomic stability, and strengthen connections with South-South financial systems. The Council decided, after deliberations, to forward the draft proclamation to the House of People's Representatives with additional inputs.Moreover, the Council discussed a draft Construction Industry Policy, recognizing the sector's vital role in national development. Despite the 201 4 policy's implementation over several years, gaps remain in technological advancement, urbanization, and infrastructure demands. With added inputs, the Council unanimously decided to implement the revised policy starting June 26, 2026, pending Council approval.The session concluded with a review of a draft urban development policy. The existing policy, effective since 2005, has addressed various challenges and contributed to urban governance, economic competitiveness, and infrastructure development. However, acknowledging ongoing gaps, the Council evaluated the new policy aimed at consolidating recent improvements in urban areas. The Council unanimously agreed, with additional inputs, to implement the new urban development policy from June 26, 2026, upon approval.