Ethiopia and the World Bank have signed a pact for a grant of $300-million to assist reconstruction and recovery in conflict-hit areas, the finance ministry said.

Fighting that erupted in the northern region of Tigray in November 2020 , and spilled over into neighbouring Afar and Amhara last year, has eased since a unilateral ceasefire was declared by the federal government in March.

“The resource will be used to finance the activities designed to support … basic services,” the ministry said in a statement late on Monday.

Services that stand to benefit are education, health, water supply and a special effort to support survivors of gender-based violence in conflict-hit areas, it said.

Areas in Amhara, Afar, Tigray and the regions of Oromia and Benishangul-Gumuz are targeted to receive the funds, it said, adding that the government would sign up with third-party organisations to execute the project in high-conflict areas.

The violence in Oromia and Benishangul-Gumuz, home to several ethnic groups, is separate from the war in Tigray.