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
Last Disbursement Planned 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

Implementing

Ministry of Finance

Funding

African Development Fund

Implementing

Ministry of Finance and Economic Development

Information

IATI identifier	46002-P-ET-KF0-007
Last Update	25 Mar 2023

Export

Contact Details

Name	Eline OKUDZETO
Email	e.okudzeto@afdb.org

Geographic Location

Country	Ethiopia

Coordinates	Location Name
9.02497 38.7469	Addis Ababa

Project Classification

Finance Type	Aid Grant Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Other Technical Assistance

Commitments

U.A 3,189,299

African Development Fund

U.A 3,189,299

Disbursements

Document Type	Language	Document
Appraisal report	fr	viewer
Appraisal report	en	viewer

Indicator	Indicator Measure	Target Year	Target Value
Ethiopia’s Country policy and institutional assessment (CPIA) scores for Economic Management	Score	2022	4.5
Mo Ibrahim Index score on Public Administration	Score	2022	62.0
Ethiopia’s Country policy and institutional assessment (CPIA) scores for Structural policy - Sub index score on Financial Sector Development	Score	2022	4.2
Global Competitiveness Index (GCI) Infrastructure index score	Score	2022	3.5
Updated macroeconomic models and model-based Forecasting and Policy Analysis System (FPAS) developed	None	2022	Yes
Public sector officials trained in economic modelling and research methodology enhanced	Number	2022	50.0
Public sector officials trained in economic modelling and research methodology enhanced - of which women	Number	2022	20.0
Public sector officials trained in economic modelling and research methodology enhanced - of which youth	Number	2022	8.0
Publication of a new five-year Medium term Debt Management Strategy (MTDS) and Debt Sustainability Assessment (DSA)	None	2022	Yes
Publication of and Debt Sustainability Assessment (DSA)	None	2022	Yes
Standard public debt reports produced and published quarterly	Number	2022	12.0
Public sector officials trained in public debt management and preparation/review of Debt Sustainability Assessments (DSA)	Number	2022	10.0
Public sector officials trained in public debt management and preparation/review of Debt Sustainability Assessments (DSA) - of which women	Number	2022	2.0
Public sector officials trained in public debt management and preparation/review of Debt Sustainability Assessments (DSA) - of which youth	Number	2022	4.0
New interbank / money market operations transactions completed	Number	2022	5.0
Regulatory and Product Supervision knowledge of the Ethiopia Capital Market Authority staff strengthened	Number	2022	20.0
Regulatory and Product Supervision knowledge of the Ethiopia Capital Market Authority staff strengthened - of which women	Number	2022	6.0
Public sector officials trained in Public-Private Partnership (PPP) certification training programs	Number	2022	15.0
Public sector officials trained in Public-Private Partnership (PPP) certification training programs - of which women	Number	2022	6.0
Public-Private Partnership (PPP) disclosures framework developed	None	2022	Yes
Number of Public-Private Partnerships (PPPs) with signed financial closure	Number	2022	5.0
Public Investment Management (PIM) sector guidelines and instructions prepared	None	2022	Yes
Diagnostic study at the subnational level to access and develop a roadmap for the rollout the PIM to subnational governments conducted	None	2022	Yes
Performance indicators for effective monitoring and evaluation of public projects preparation and approval prepared	None	2022	Yes