EU support to Public Finance Management reforms in Ethiopia (EUSPRE)

05.02.2025

The overall objective of EUSPRE is to enhance the transparency and efficiency of Public Financial Management (PFM) for better service delivery and inclusive development. The financing agreement was signed on 28 June 2021 between the European Commission and The Partner country (Ministry of Finance).

Objectives

Ethiopia is currently implementing its Public Financial Management (PFM) Reform Strategy (2023–2028). The EUSPRE action supports this effort through grants to three key institutions: the Ministry of Finance (MoF), the Office of the Federal Auditor General (OFAG), and the Public Procurement Service (PPS). The project helps the MoF implement PFM reforms and strengthen coordination with regional and local governments; supports OFAG in expanding its financial and performance oversight; and assists PPS in improving procurement, contract management, and asset disposal to boost efficiency and generate savings. A dedicated Technical Facility Unit (TFU) provides daily technical and administrative support across the PFM system, including oversight bodies such as Parliament and external auditors.

Project Activities

  • Enhanced institutional and technical capability of the Ministry of Finance to implement and monitor PFM reform process
  • Better coordination between the Federal and the regional administrations
  • Reinforced administrative and financial procedures
  • Improved in-service training of financial managers
  • Upgraded and sustained IT system
  • Strengthened internal controls
  • Improved accuracy and validity of external assessment (audit) and reporting
  • Enhanced critical legislative oversight

Expected Results

The expected results of the project/Action are:

  • Increased leadership in the steering of the Public Finance Management (PFM) Reforms
  • Service delivery improved for all through a more effective PFM system at local level
  • Budget oversight and budget scrutiny improved by the relevant national institutions
  • Enhanced institutional and technical capacity of the PPS   
Ethiopia
€ 10,000,000
Ongoing
Inclusive growth, private sector engagement
Ministry of Finance-PFM Reform Division, Public Procurement Service (PPS), Office of the Federal Auditor General (OFAG), Technical Facility Unit (TFU)- DAI Global Belgium SRL