Objectives

At present, Ethiopia is executing the Public Financial Management Reform Strategy (2023-2028). Consequently, the EUSPRE action is supporting the PFM reforms along with three grantees executing the project, specifically the Ministry of Finance PFM Reform Division, the Office of the Federal Auditor General (OFAG), and the Public Procurement Service (PPS), which are gaining from the action. Thus, the project/action through its grant to the Ministry of Finance seeks to assist the MoF in executing the reforms outlined in the revised PFM reform strategy and to enhance coordination with sub-federal government levels (regions and Woredas).

Moreover, the Grant to OFAG supports the Federal Auditor General in increasing the scope and depth of its financial and performance oversight.

Additionally, through its action to PPS, aimed at enhancing the quality, effectiveness and efficiency of service provision to public entities in areas of procurement, contract management, asset disposal and market survey to bring about sustained benefits in terms of economies of scale from bulk purchases and assets disposal.

Furthermore, a technical Facility Unit (TFU), is assisting the grantees with the daily execution and administration of the programme by offering technical support and advice to all entities within the public financial management framework, which encompasses specific financial management; monitoring and evaluation; external auditing institutions; and the House of People Representatives.

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