Crown Agents is an international development organisation that works with leaders across the globe to accelerate self-sufficiency and prosperity. We offer supply chain, fund management, programme design and evaluation, training, institutional efficiency and revenue generation expertise.
Project Background
The Supporting Ethiopia’s Transition (SET) Programme was designed to pilot targeted interventions to support the Government of Ethiopia (GoE) in priority areas for democratic transition, testing our commitment to reform and appetite for donor engagement. This would support Her Majesty’s Government (HMG) to identify new areas of programming to support governance reform in Ethiopia, while also responding to immediate needs. In a recent addendum to the Business Case, the SET programme identified Public Financial Management (PFM) as a key area of institutional reform. In February 2021, the Ministry of Finance (MoF) wrote to the World Bank requesting technical assistance to support the preparation of a new PFM Reform Strategy.
The World Bank undertook the 2019 Public Expenditure and Financial Accountability (PEFA) assessment for the federal Government of Ethiopia, Addis Ababa city administration and five regional sates (2018-2020) with the support of the European Union, UNICEF, Irish Aid, The British Embassy in Addis Ababa (BE) and UN Women. In addition, the Ethiopia PEFA Climate Report is almost finalized and due to be published. The PEFA Secretariat, together with the World Bank, BE and the EU have held discussions with the Government of Ethiopia Ministry of Finance (MoF) to support the preparation of a new PFM Reform Strategy through piloting the application of the PEFA Handbook, Volume IV: Using PEFA to Support Public Financial Management Improvement. The mission will commence from FY 2022 and the PFM reform priorities, actions identified technical assistance needs identified during this exercise will be used by GoE authorities to inform dialogue with donors and other external stakeholders.
The PEFA Secretariat’s methodology in providing assistance under Volume IV supports the government in reviewing the findings of the PEFA assessments. However, more support is needed to help the GoE in prioritizing actions to address weaknesses identified in the PEFA assessment, and in guiding the process to develop the GoE’s new PFM Reform Strategy. Under the SET programme, the BE has set aside resources to provide strategic support to PFM reform to the Government of Ethiopia, and has agreed that supporting the preparation of a prioritized strategy and action plan is key to defining and supporting the implementation future PFM reform.
Project Deliverables include:
Two outputs that support improved PFM in GoE:
- Output 1: A new GoE PFM Reform Strategy and corresponding engagement including workshops (will be delivered alongside other partners’ support, such as the World Bank, PFM Donor Working Group (DWG) and PEFA Secretariat); and
- Output 2: A Theory of Change that identifies strategic PFM reforms that would benefit from UK support where FCDO Ethiopia has a comparative advantage (which will identify potential technical assistance options for the UK to support (both policy and programmatic) that meet GoE’s next generation of PFM reform priorities).