Project profile — Investment Climate Improvements Program in Ethiopia

• Ethiopia (100.00%)

• Public finance management:
Public finance management (15111) (15.00%)
Domestic Revenue Mobilisation (15114) (15.00%)
• Trade facilitation:
Trade facilitation (33120) (40.00%)
Trade education/training (33181) (30.00%)

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (not targeted)
• Participatory development and good governance (not targeted)
• Trade development (significant objective)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• ICT as a tool for development (not targeted)

The goal of this initiative is to create a more transparent and business-friendly environment for both women and men entrepreneurs in Ethiopia. The project seeks to achieve this by: (1) reviewing policies and regulations related to trade logistics, business regulation and tax administration; (2) recommending improvements based on consultations with government and industry, as well as examples from other countries; (3) providing training and technical assistance to implement the agreed-upon reforms; and (4) undertaking outreach activities to business owners to encourage them to comply with and formalize their businesses. Another objective of the project is to reduce the cost of doing business for entrepreneurs by 10%.

The expected intermediate outcomes for this project include: (1) improved efficiency in trade logistics for exports and imports in Ethiopia; (2) streamlined procedures and improved environment for registering and operating businesses owned by women and men; and (3) more efficient, transparent and user-friendly business taxation and appeals processes.

Results achieved as of March 2018 include: (1) the drafting of a new directive that will eliminate duplicative licensing categories and improve the competency requirements; (2) the delivery of training for over 1,500 government officials on trade policies, strategies and legal frameworks; (3) the introduction and adoption of “cash basis” accounting for small businesses; (4) the finalization of guidance notes for new income tax and tax administration proclamations; (5) the publishing of a comprehensive inventory of investment incentives and awards; (6) an improved interface of Ethiopian Investment Commission’s (EIC) online investment services; (7) a decrease in physical inspections of cargo by border clearance by 35%; (8) the development of the Customs Electronic Single Window system; (9) a reduction of the number of supporting documents required for importation and exploration; and (10) the issuance of a pre-arrival customs clearance procedure manual which has reduced the time to process the import declarations. These results have contributed to the development of a more transparent and business-friendly environment for both women and men entrepreneurs in Ethiopia.

• Proactive disclosure