EU-backed public finance management project unveiled

Addis Ababa, August 3, 2023 (FBC) – The Ministry of Finance (MoF) today announced the launch of a project funded by the European Union to improve the public finance management in Ethiopia.

The main objective of the EU Support to Public Finance Management Reforms in Ethiopia programme is enhanced transparency and efficiency of public financial management for better service delivery and inclusive development.

The EUSPRE Programme has four interlinked and mutually supportive Specific Objectives: increased leadership in the steering of the reforms by benefiting institutions; improved service delivery for all through a more effective PFM system at local level; improved budget oversight and budget scrutiny by the relevant national institutions; institutional and technical capacity of the PPPDS enhanced. The TFU will assist in the overall implementation of the program.

During the launching event, the Minister of State for Finance, Semereta Sewasew, stated that the Public Finance Management Reforms programme will play a significant role in building the capacity of institutions implementing the government’s financial management reforms and providing technical support.

It is stated that the project that will be implemented in the next four years in Ethiopia. Upon the implementation of this project, the management capacity of institutions will be enhanced and the implementation of improved government financial administration services at the bottom structure of the government will be carried out.

In addition, it was stated that the task improving budget management and monitoring and increasing the institutional capacity of the government procurement service will be undertaken by the technical team supporting the project.

The Ministry of Finance indicated that the European Union in Ethiopia granted 10 million Euro (610 million Birr) to support Public Finance Management Reforms in Ethiopia. Half of this finance funding is allocated for a Technical Facility Unit (TFU) to provide a technical assistance in line with the PFM reforms.

Direct targets of the programme are all key public financial management institutions at Federal, Regional and City administration levels; the Ministry of Finance, the Office of the Federal Auditor General (OFAG); and House of People Representatives. Indirect targets are all of the people of Ethiopia with a focus on gender mainstreaming in PFM.