Ethiopia signs $70mln financing agreement with World Bank for governance modernization project

Addis Ababa, September 30, 2024 (FBC) – The Ministry of Finance and the World Bank have signed a financing agreement for the implementation of the Governance Modernization to Enable Efficient Service Delivery Project amounting to USD 70 million, in the form of a concessional loan.

The project is keen on enhancing ongoing efforts to enhance the government’s capacity to mobilize and manage its financial and human resources. Accordingly, the first component of the project will support in improving public administration management capabilities through transitioning towards a data informed approach to Human Resource Management, developing competency-based recruitment and management processes, and addressing civil servant capacity building.

The second component is designed to support initiatives to improve domestic revenue mobilization, with an emphasis on improving voluntary compliance through improved taxpayer services and closing compliance gaps by leveraging technology and data analytics.

The third component will advance public financial management (PFM) by scaling up digital solutions, addressing critical process deficiencies across the PFM cycle, supporting the rollout and enhancement of the electronic government procurement (e-GP) system and support the professionalization of accountancy and procurement functions.

The agreement was signed virtually by Ahmed Shide, Minister of Finance, representing the Government of Ethiopia, and Ms. Maryam Salim, the new Country Director for Ethiopia.