Ethiopia said on Friday that it had signed a $1 billion financing agreement with the World Bank.

Its finance ministry said in a post on Facebook that the financing would take the form of a concessional loan and grant.

The money will bolster government efforts to ensure financial sector stability, enhance trade competitiveness and strengthen domestic resource mobilisation, it added.

This week the International Monetary Fund's board approved the latest review of the East African country's $3.4 billion loan programme, unlocking access to another $262.3 million tranche.

Ethiopia’s reforms

This comes amid growing concerns on the negative impact of policies backed by international financial institutions on African economies, with economists saying the global financial system does not favour the continent.

Ethiopia’s reforms include last year's floating of the country's birr currency and moves to open up the previously-closed economy to the private sector, Reuters news agency reports.

The IMF said it was important for Ethiopia to improve foreign exchange market functioning, boost domestic revenues, restore external debt sustainability and enhance fiscal transparency.