ETHIOPIA - Institutional Support Project to Strengthen Macroeconomic Management (ISP-SMM)


Project Summary

Approval Date 15 Jul 2022
Signature Date 26 Jul 2022
Planned Completion Date 30 Jun 2026
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 15124
Environmental Category 3
Commitment U.A 3,189,299
Status Implementation

Project General Description

The proposed operation is a technical and institutional support project, financed through grant of UA 3,189,299 from canceled balances to the Federal Democratic Republic of Ethiopia. The project has been designed to complement prior assistance provided through the just ended Institutional Support for Private Public Partnerships (ISP-PPPs) project as well as prior technical assistance for reforms in developing the capital markets and assistance to Ministry of Development Planning (MDP) in monitoring and evaluation. Through the Institutional Support Project to Strengthen Macroeconomic Management (ISP-SMM), the Bank will, thus, play a major role in facilitating implementation of the project by focusing on the development of a policy, legal, regulatory and institutional framework for PPPs and the rollout of a Public Investment Program (PIP) as well as capacity building and project management support. The project consists of three components: (i) Strengthening capacity for policy analysis and economic management, (ii) Strengthening long-term financing through capital markets, Public Investment Management (PIM) and PPP capacity, and (iii) project management. It is scheduled for implementation over a 41-month period, from August 2022 to December 2025.

Project Objectives

The development objective of ISP-SMM is to strengthen the capacity of Government of Ethiopia (GoE) in research and policy analysis underpinned by a well-managed public investment program. ISP-SMM will support Ethiopia’s goal of developing a cadre of Government staff with strengthened capacity in research and policy analysis to support the implementation of the Ten-Year Development Plan (TYDP) and Homegrown Economic Reform (HGER). The expected outcomes of the project are: (i) Enhanced macroeconomic resilience using evidenced-based policy–making to support economic recovery and growth, (ii) Strong and well-regulated capital Market intermediating finance for the private sector, and (iii) Enhanced service delivery through well managed public investment projects.

Beneficiaries

The project’s direct beneficiaries are the Ministry of Finance, National Bank of Ethiopia and Ministry of Development Planning. ISP-SMM will support building the capacity of the public officials in the beneficiary institutions with strengthened capacity in research and policy analysis to design economic policy and public investment management in line with the objectives of the TYDP and HGER. This, in turn, will support policy formulation to ease structural bottlenecks and facilitate upgrading of macroeconomic policy and institutional frameworks necessary to promote business growth and investment, employment and sustained inclusive economic growth.

Participating Organization

Funding
African Development Fund
Implementing
Ministry of Finance

Information

IATI identifier 46002-P-ET-KF0-007
Last Update 24 Sep 2022

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Contact Details

Name OKUDZETO Eline
Email e.okudzeto@afdb.org

Geographic Location

Country Ethiopia
Coordinates Location Name
9.02497 38.7469 Addis Ababa