The money is expected to ensure people living in rural areas get access to services, such as healthcare, education, water and sanitation.

It is also aimed at helping local authorities strengthen accountability and transparency in service delivery, the bank said.

Ethiopia has an ambition to achieve lower middle-income status by 2025 but is hindered by some significant regional inequities and many people are living in poverty.

In some parts of the country, people have very little access to services.

The poverty rate has fallen from 55% in 2000 to 34% in 2011, while real GDP growth averaged 10.5% a year between 2003 and 2015. Life expectancy has risen from 52 to 65 years, according to the World Bank.

An AfDB statement said: “Women will also benefit from accountability and citizenship engagement initiatives such as social accountability, financial transparency accountability (budget literacy) and participation in water, sanitation, hygiene committees in addition to improved healthcare and water and sanitation services.

“The measures will also benefit especially those in the underserved regions and pastoralist communities of Afar, Ethiopia-Somali, Benishangul-Gumuz and Gambela,” it said.

The statement did not give more detail about how women would benefit from the grant.

The African bank has worked with Ethiopia on this since 2006.

Since then, the enrolment rate in primary schools has increased from 77.5% to 99%. Maternal mortality and child mortality has declined, while water supply to rural areas has improved.

Earlier this year, the UK pledged to help Ethiopia transform its tax system and become less reliant on aid.

The US also promised to give an additional $170m in humanitarian assistance to refugees in the Africa country.