SUSTAINABLE INDUSTRIAL DEVELOPMENT PROGRAM IN ETHIOPIA MID TERM EVALUATION REPORT

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Evaluation Plan:
2017-2020, Ethiopia
Evaluation Type:
Mid Term Project
Planned End Date:
12/2018
Completion Date:
11/2018
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
35,000

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Title SUSTAINABLE INDUSTRIAL DEVELOPMENT PROGRAM IN ETHIOPIA MID TERM EVALUATION REPORT
Atlas Project Number: 00070488
Evaluation Plan: 2017-2020, Ethiopia
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 11/2018
Planned End Date: 12/2018
Management Response: Yes
UNDP Signature Solution:
  • 1. Poverty
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.5.1 Solutions adopted to achieve universal access to clean, affordable and sustainable energy
SDG Goal
  • Goal 1. End poverty in all its forms everywhere
  • Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
SDG Target
  • 1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
  • 1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
  • 17.9 Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the Sustainable Development Goals, including through North-South, South-South and triangular cooperation
Evaluation Budget(US $): 35,000
Source of Funding: UNDP
Evaluation Expenditure(US $): 7,640
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Victor Maziwisa International Consultant cvmaziwisa@hotmail.co.uk UGANDA
GEF Evaluation: No
Key Stakeholders: Ministry of Industry, Ministry of Finance and Economic Development
Countries: ETHIOPIA
Lessons
1.

LESSON LEARNED

 

  • Some of the lessons learned from this MTR are that consultation, participation, sensitization, training and creating a common understanding between IPs and beneficiaries were critical from the commencement of projects and programs in order to create a basis for a common approach and hence there is buy in from IPs and beneficiaries.
  • UNDP has successfully adapted to the theory of change that targets beneficiaries to address questions such as: who are we targeting and what changes are expected? What has changed and how has it impacted on the lives of the target groups? Are there visible signs that they are sustainable? In addition, UNDP has engaged partners for sustainable focus on key and critical areas whilst digging deeper into those areas where they have comparative advantage. (eg: engagement with FAO and UNIDO in undertaking the feasibility study of Integrated Agro Industrial Parks.
  • The consultants found good systems in place for planning and implementation. The planning  and review processes among the UNDP units, and with program partners and stakeholders are well structured, systematic, and continuously under review and undergoing continuing improvements.
  • Ministry of Industry and its institutes, Regional Industrial Bureaus and Regional Industrial Development Corporations (RIDCPs), should work to strengthen internal management (financial and programmatic) systems and ensure close alignment of external support with institutional priorities to ensure relevance, impact and long-term sustainability.
  • Program conception should pay special attention to implementation modalities so as to avoid situations such as more layers of bureaucratic procurement procedures, which have highly created delays in program delivery and implementation when procurement was processed through the implementing party. The lengthy procurement process was not compatible with the time frame requirement of the project.
  • Capacity building takes a very long-time as do the results from the process. Adequate time provisions need to be made for results of success to start emerging from the capacity building processes.

 

 

 

 


Findings
1.

MAJOR FINDINGS

Relevance The MTR and analysis clearly indicate that Institutional Capacity Strengthening for Industrial Development is a relevant action plan that addresses industrial development and poverty reduction in its design as well as in its implementation strategy.

Effectiveness On the basis of the analysis of the program’s desired or planned results (outputs, baseline, targets, indicators, outcomes and impacts), quarterly reports, discussion with project staff and with stakeholders it can be concluded that the project is proceeding close to the original plan. It is expected that through the theory of change that the project will further move along the supply chain to induce efficiency, quality, productivity and competitiveness especially the Industrial Parks, SME clusters within marginalized community set-ups. 

Efficiency It can be considered that up to mid-term point the resources were efficiently utilised since there is evidence that most of the intended results were achieved and within budget. 

Impact The project goal is to play a catalytic role in government’s effort to bring about a transformative and structural change in the manufacturing sector through enhancing the institutional capacity of private sector-led manufacturing industries, and to that end, it has indirectly made an impact, though more is expected in the latter part of the GTP II phase through programs that induce private sector productivity and competitiveness.


Tag: Effectiveness Efficiency Impact Relevance Sustainability Institutional Strengthening Technical Support National Institutions Private Sector

2.

Resources The UNDP Institutional Capacity Strengthening for Industrial Development Program has delivered satisfactorily of its financial and technical support for the program implementation. 

Value for Money In addition to operating within budget during the review period, the UNDP project has a robust and comprehensive procurement. logistics and management process with laid out principles of competitive and transparent purchasing, adequate quality assurance, compliance with national laws and international agreements, appropriate use of procured products, mechanisms for monitoring the development of beneficiaries where necessary, and accountability safeguards. This set up ensures the attainment of value for money in the operations of the project.

Theory of Change UNDP has successfully adapted to the theory of change that targets beneficiaries to address questions such as: who are we targeting and what changes are expected? What has changed and how has it impacted on the lives of the target groups? Are there visible signs that they are sustainable? It is expected that through the theory of change that the project will further move along the supply chain to induce efficiency, quality, productivity and competitiveness downstream, especially in the Industrial Parks, SME clusters within regional, district and marginalized community set-ups. 


Tag: Efficiency Operational Efficiency Project and Programme management Theory of Change

3.

2. ANALYSIS AND MAJOR FINDINGS

2.1 Project Strategy and Design

A review of the Institutional Capacity Strengthening For Industrial Development Program results matrix showed that most of the outcomes, outputs, indicators, baselines and targets are rightly placed. In addition, they respond to national priorities identified in the GTP and other national development policy documents such as Vision 2030, and are drawn directly from the UNDAF. It is worth nothing that following the switch from GTP I to GTP II phase, UNDP program design or focus has not experienced any change but rather still remains on course. The MTR has subjected the Institutional Capacity Strengthening For Industrial Development Program (2013-2018) to the principles of Results Based Management in order to indicate if the program design is objective and sound. The criteria employed were to clearly show a clear Results Chain at different results levels. The MTR team’s findings are predicated on evidence provided in literature reviews, key informants, observations and focus group discussions. Because of the electric approach employed in this study,some information may be contested by different groups and individuals, largely due to differences in perceptions and experiences of different key informants and stakeholders. The MTR team therefore, utilized the triangulation to minimize contested findings by identifying the major areas of agreement and disagreement using and sticking to available evidence.


Tag: Effectiveness Relevance Programme/Project Design Jobs and Livelihoods Poverty Reduction Institutional Strengthening SDG Integration National Institutions Private Sector

4.

2.2 Relevance

The major questions and the evaluation criteria sought to establish whether Institutional Capacity Strengthening For Industrial Development as a program has been relevant and strategically positioned to support Ethiopia’s industrial and poverty reduction objectives as articulated in the GTP (2025) and the UN system Delivering As One as articulated in the UNDAF. The MTR and analysis clearly indicate that Institutional Capacity Strengthening For Industrial Development is a relevant action plan that addresses industrial development and poverty reduction in its design as well as in its implementation strategy. The UNDP Institutional Capacity Strengthening for Industrial Development Program is aligned to the development aspirations of the GOE and responds to the critical priorities on industrial development and poverty reduction, sustainable economic transformation, good governance and institution building and strengthening. Capacity development in the form of skills training, workshops, retreats and institutional building remain key in responding to institutional capacity development, industrial development, poverty reduction and human resource development. For instance, Ministry of Industry attended skill advancement sessions anchored on planning, coordination, monitoring & reporting of activities at the county level; project management methodology and formulation; planning, coordination and reporting processes at the National Level; the budgeting process at the National Level and the National Budget Development Processes. The Institutional Capacity Strengthening For Industrial Development Program has remained relevant and strategically positioned while demonstrating remarkable adaptation to changing circumstances.


Tag: Environment Policy Green Climate Green Economy Relevance Policies & Procedures Institutional Strengthening National Institutions

5.

2.3 Effectiveness

The MTR measured the extent to which the Institutional Capacity Strengthening for Industrial Development Program is achieving its desired/planned results (outputs, outcomes and impacts). Questions were asked to understand the extent to which the Program initiatives put in place by the GOE and UNDP have been effective in industrial development and reducing poverty in Ethiopia? The MTR was also to examine whether the program has effective monitoring mechanisms in place to measure progress towards the achievement of results and whether the program is contributing to planned outcomes and results?


Tag: Effectiveness Knowledge management Policies & Procedures Procurement Value Chain Institutional Strengthening National Institutions

6.

2.3 Effectiveness (continuation)

2.4 Outputs

Output 1: Government's policy review and regulatory capacity in industrial development strengthened for industrial sector transformation and increased private investment in medium and large enterprises (MSMEs); - Policy advisory services provided: Throughout the project implementation period, policy advisory services were provided to the Minister and senior leadership of the Ministry of Industry on Government’s industrial policy framework and regulatory capacity towards industrial development and transformation. The support enabled the Ministry to design strategic interventions to enhance competitiveness and productivity in the prioritized sub-sectors linked with efficient monitoring and evaluation systems. Specifically, policy advisory services were provided on the: o Country’s cross-industry ecosystem and identified binding constraints towards and accelerated expansion of the industrial sector and manufacturing sub-sector in Ethiopia, with strong-emphasis on SMEs and value chain clusters. o Detailed assessment and review of manufacturing export performance conducted as a whole and for prioritized sub-sectors, identified bottlenecks and provided recommendations for strategic interventions (including improvements to narrow performance gaps). o Undertook a comprehensive assessment of the coordination mechanisms for fostering industrial sector development at both national and regional level and commended palatable actions. o Knowledge framework that builds understanding and solutions for improving international competitiveness of the industrial sector in regions of Ethiopia. o Effective working relationship with most of the important development partners including UNDP, UNIDO, DFID, World Bank, EU, USAID, JICA and KOICA ... and their respective agencies in Ethiopia o Dedicated advisory support to the Minster on Steel and Metals and Petrochemicals and Chemical Products to target deliberately and precisely the heavy and chemical industries. These sub sectors are targeted where pay-offs are potentially relatively high and preliminary tests of feasibility, viability, and sustainability are acceptable. The final inception studies showed very high returns and that both projects are feasible, viable and sustainable. Both interventions do have high linkages and multiplier impact as well as value added impact from their relatively high complexity. These projects are expected to have potential for a genuine transformational impact on manufacturing growth in Ethiopia, exports and growth in productivity. From inception result projections both projects could collectively add 10 percentage points to manufacturing share of GDP by 2024/25, the end of GTPIII.


Tag: Effectiveness Policies & Procedures Results-Based Management Institutional Strengthening Policy Advisory National Institutions

7.

2.3 Effectiveness 2.4 Outputs -(continuation)

Output 1: Government's policy review and regulatory capacity in industrial development strengthened for industrial sector transformation and increased private investment in medium and large enterprises (MSMEs)continuation)

- Policies for Accelerated Investment and Growth of Industrial Sub-Sectors of Ethiopia endorsed. The policy study put forward policy recommendations for prioritized industrial sub sectors compatible with the overall industrial policy. Specifically, i) designed and developed a vibrant policy-making framework, process and institutional structure to support each of the eight (8) priority sub-sectors identified in the Ethiopian Industrial Development Strategic Plan (EIDSP); and, ii) put forward innovative, implementable, best practices of internationally competitive industrial sub-sectors that inform Ethiopia’s industrial transformation agenda in line with Africa 2063 and the UN 2030 Agenda on Sustainability. - Women in Manufacturing: opportunities, challenges and strategic interventions endorsed. The study examined existing outlook, and emerging constraints to increase participation and benefit by women in the industrial sector over GTP ll & GTP lll. The study provided an overview of the diversity of gender dynamics and addressed critical gender issues in the manufacturing sector at various levels of the value chains in the prioritized industrial sub sectors. It put forward as well crucial ‘windows of choice’ for the inclusion of a gender perspectives as well as made policy recommendations for improved participation and benefit for women in manufacturing sector.  


Tag: Effectiveness Gender Equality Gender Mainstreaming Women's Empowerment Financial Inclusion Inclusive economic growth Jobs and Livelihoods Poverty Reduction

8.

2.3 Effectiveness 2.4 Outputs -(continuation)

Output 2: Ethiopian manufacturing and service industries, especially medium and large enterprises sustainably improved their competitiveness through 1) value chain analysis and cluster development 2) enhanced labour productivity

- Industrial Systems Development - Industrial Information System established that is comprehensive computerized and webenabled “industry Information System” for MoI to centralize and disseminate statistical information related to the performance of the industrial sector. The system is expected to ease carrying out analytical work for evaluating different development programs, devising recommendations on industrial policy, and analyze the competitiveness of the Ethiopian manufacturing through bench-marking. - Regional Industrial Park Development Corporations’ financial management systems established to enable RIPDCs handle financial transaction in modern and systematic manner. Bankable business plans and pitch books to attract potential investors to invest in integrated agro-industrial parks developed for the 4 plot regions as well (Oromia, Tigray, Amhara, and SNNP). - Standardized input-output coefficient system established. The system enhanced industrial coherence and improved industrial planning in terms of facilitating trade through systematization of incentives in priority export-oriented sub sectors. The system enabled as well to oversee duty neutralization, which allows exporters to get the raw material/inputs or components required to produce exportable products at the international price and exempts the capital goods needed for the investment from duties and taxes. 


Tag: Effectiveness Knowledge management Policies & Procedures Jobs and Livelihoods Technology Data and Statistics

9.

2.3 Effectiveness 2.4 Outputs -(continuation)

Output 3: Private sector support-giving institutions and MSMEs have improved skills, knowledge, and improved technological capacity

- Guideline Manual on Industrial Sectoral Association - Guideline (manual) on industrial sectoral association established towards a strong representative body of the industry sector. - All African Trade Fair 2013 & 2014 organized and held by the Ethiopian Leather Industries Association. The fair created business linkages and strengthened the integration of Ethiopian and African leather industries with global partners. Manufacturing and service industries within the sector from 48 countries benefited as exhibitors and business transactions worth of 12 million USD were made. The fairs created business linkage and integration of Ethiopian and African leather industries with global markets. Event attended by approximately 200 exhibitors (more than 40 oversees companies) and more than 10,000 visitors in the subsequent years. - In terms of capacitating human resource, technical knowledge was developed for 85 leather industry representatives on leadership skills and awareness on work ethics for effective delivery of services; 50 leather industry mechanical and electrical experts on effective implementation of preventive maintenance, planning and management; 170 high level officials and operators within the leather sector on waste management, in process pollution reduction and adoption of clean technologies; and 24 experts on international trade, market access, awareness on WTO and supply chain management in leather sector. 


Tag: Effectiveness Communication Knowledge management Policies & Procedures Project and Programme management Results-Based Management Service delivery

10.

2.3 Effectiveness 2.4 Outputs -(continuation)

Output 3: Private sector support-giving institutions and MSMEs have improved skills, knowledge, and improved technological capacity

- ECCSA delegation participated at India Conclave organized by Confederation of Indian Industries (CII) & EXIM Bank. Nearly 900 delegates from 45 African countries took part in the deliberations and business meetings at the conclave, and 477 projects worth about $ 68.37 billion were then discussed. The event served as a platform for Ethiopian business counterparts to deal and interact with 187 Indian industrialists. In addition, Ethiopia had presented 14 business plans to EXIM Bank for appraisal. - Ethiopia’s Industry potential and opportunity promoted to Asian market via Fortune China Magazine with average distribution rate of over 2 million print copy and 7 million on line visitors (July 2014 Edition). - Productivity and completeness of the leather sector enhanced through promotion of the newly released proclamation of raw hides and skin marketing (tailor made program run on Fana Radio for 3 month). 


Tag: Effectiveness Knowledge management Results-Based Management Theory of Change Technology National Institutions Private Sector

11.

2.3 Effectiveness 2.4 Outputs -(continuation)

2.7 Performance Improvements Significant improvements have been achieved in the establishment of relevant industrial bodies and infrastructure but what seem to be lagging behind are the systems that aid the implementation of strategies. These are Systems that relate to: 

- Cascading of Strategic Plans to Operational Action Plans for implementation across the board including those institutions to be established further Ethiopian Industrial Development Strategic Plan (2013-2025) and Ethiopian Industry Development Roadmap and the Institutional setup For Ethiopian Industrial Development (2013- 2025). - Robust and Comprehensive measurement, monitoring and evaluation of performance and accountability. -Single window in order to reduce red tape, reduce the cost of doing business and facilitate the movement of goods and people across national borders. It is also envisaged that by implementing Single Window, Ethiopia can attract Foreign Direct Investment (FDI) as well as enhance the competitiveness of Ethiopian goods. A Single Window also acts as an impartial and objective rationing devise for the allocation of suppliers including foreign currency and ensures an objective and impartial implementation of incentives as a pre-requisite for GTP II to succeed, in terms of achieving the revenue targets. 


Tag: Effectiveness Monitoring and Evaluation Policies & Procedures Institutional Strengthening National Institutions Private Sector

12.

2.8 Efficiency

MTR realizes that Efficiency cannot be looked at in isolation from effectiveness. The optimum would be an Institutional Capacity Strengthening For Industrial Development Program process that is both effective and efficient. Against this background, the evaluation set out to establish whether resources were efficiently utilised. It questions if results had been achieved at an acceptable cost and achieved in a timely manner. Is expenditure in line with agreed upon budgets and work plans? Were resources both financial and human made available as per the Institutional Capacity Strengthening for Industrial Development Program document? Were financial and other reports prepared well to reflect transparency and accountability to all stakeholders? The MTR to a large extent did assess whether the resources were used for what they were meant for at the activity level but concentrated on the achievement of results as reflected in the results matrix.

Resources were used for what was planned and did produce the planned (and useful) products and intended results were achieved. Out of a total project budget of US$3.4 million (2013-2018), to date US$2.9 million has been utilized and this constitutes 97% utilization (2013-2017). There were positive variances between planned and actual expenditures for the outputs as shown in Table 2.2 above and Table 2.3 below, demonstrating efficient use of resources. All outputs were produced within budget.


Tag: Effectiveness Efficiency Monitoring and Evaluation

13.

2.8 Efficiency (continuation)

The program prepared progress reports that are transparent and provide accountability of how resources were utilised, what was done and what was achieved. In most cases, the quarterly and annual progress reports were well prepared and provided critical information on the activities undertaken and the outputs produced. (Total funds utilised are reflected in the resource section of the reports within UNDP Atlas Computerized system). Also, all projects steering committees are fully operational and results from meetings are key to program implementation. UNDP earns top marks for operational efficiency as exemplified by a delivery rate which has consistently been above 95% since the inception of the program. The UNDP has established a good track record of mobilizing, disbursing and accounting for the use of funds.The evaluation doesraise the issue of efficiency when it comesto capacity development and down-stream activities. The evaluation acknowledges that the capacity development efforts are excellent and have been of great value to those who have been exposed to training and institutional building. These individuals described how they used what they have gained from these efforts. Hence, the MTR can conclude that efficiency is demonstrated in achieving results. 

Examining the efficiency level further, the MTR probed into programs M & E systems and discovered good systems in place for planning, monitoring and evaluation processes, as well as for the reporting of results. The planning and review processes among the UNDP units, and with program partners and stakeholders were well structured,systematic, and continuously under review and undergoing continuing improvements. UNDP has a global web-based compliant system which looks for different parameters of compliant and monitoring issues. The UNDP M & E is structured to focus on outcomes, while the Implementing partners focus on outputs and activities. In accordance with the programming policies and procedures outlined in the UNDP User Guide, the program has been monitored within the annual cycle through the following:- 


Tag: Efficiency Human and Financial resources Monitoring and Evaluation Operational Efficiency Project and Programme management

14.

2.8 Efficiency (continuation)

2.9 Finance and Co-financing No co-financing is in place currently. 

2.10 Value for Money

The relationship between resources and outcomes determines cost-effectiveness or value for money: the optimal use of resources to achieve the intended outcomes. We carried out an assessment of the program’s approach to delivering value for money through both expenditure and operations. The key areas we focused on included: - The status of the procurement arrangements, staff costs, travel and expenses policy, and other overheads and the existence of an efficient and cost effective procurement and logistics systems coupled with value for money decision making processes. - We also ascertained whether the project was continually looking to improve value for money as well as further building realistic efficiencies over the review period. - Basic procurement supply and management plan outlining principles of competitive and transparent purchasing, adequate quality assurance, compliance with national laws and international agreements, appropriate use of any procured products, mechanisms for monitoring the development of beneficiaries where necessary, and accountability safeguards ? Adequate accountability for all procurement conducted. 


Tag: Efficiency Procurement Value Chain

15.

2.11 Impact

The project goal is to play a catalytic role in government’s effort to bring about a transformative and structural change in the manufacturing sector through enhancing the institutional capacity of private sector-led manufacturing industries, and to that end, it has made not much of a significant impact, though more is expected in the latter part of the GTP II phase. The expected outcome in the Project Document was stated as follows: Expected UNDAF Outcome 2: By 2020 Private Sector driven manufacturing and service industry sector growth is inclusive, sustainable, competitive and job rich. The target of manufacturing industries in % GDP of 7 % in 2015 was not reached and the figure has since settled at 4% as of 2018. The expectation is that the manufacturing sector is to leap-frog from 4% to 12 % by 2020. Hence there is need for concerted efforts to increase productivity and revenues in the sector, UNDP support included. UNDP programming unfortunately can only strengthen public sector institutions that in turn work directly with the manufacturing sector; hence its impact on the outcome is not direct. 


Tag: Impact Sustainability Institutional Strengthening National Institutions Private Sector

16.

2.12 Sustainability (continuation)

It is not all too clear if plans are underway or strategies are put in place to make sure that sustainability at the Regional Office level is being built. Evidence shows that the GOE and the beneficiaries are willing to continue with planned activities that have been started during the life of UNDP Program. However, some UN agencies and development partners responding to the MTR believe that Government does not have the capacity to do this by itself owing to limited resource base and human capacity deficiency. However, GOE has made some strides in establishing sources of sustainable funding and also developing resource mobilization strategy. In the absence of sustainable and human resource capacity, the ability of Government to ensure that the efforts to develop the industry and reduce poverty in Ethiopia can continue without external assistance cannot be guaranteed. There are still some doubts about whether GOE will be ready to take on the challenges of continuing to respond to industrial development and poverty reduction and sustainable development on its own without UNDP or development partner support. However, the MTR team found that the GOE has invested its own resources for the roll-out of Industrial Parks and SME clusters to cover the establishment operational costs. Though modest considering what goes into institutionalizing decentralization in Ethiopia, it can be seen as a step in the right direction that could lead to ownership of the project. In its GTP II program, the GOE has indicated the private sector and in particular the SME’s remain the mainstay for re-invigorating and re-energizing economic growth and development in post-GTP I Ethiopia. Other areas that the GOE will put emphasis on are: Up-scaling the health sector, Infrastructural development, Agriculture and food production and the development of Emerging sectors. The risks identified in the Project Document, Annual Project Review/PIRs and the ATLAS Risk Management Module is the most important and the risk ratings applied are appropriate and up to date. In addition, the following risks to sustainability were assessed:

2.12.1 Financial risks to sustainability The likelihood of financial and economic resources not being available once the assistance ends (considering potential resources can be from multiple sources, such as the public and private sectors, income generating activities, and other funding) for sustaining project’s outcomes is negligible. Substantial efforts were made to mobilize resources for the program both on UNDP’s as well as the Ministry’s side which have not availed favorable results. Strategy shall be designed for mobilizing resources to implement interventions with impactful outcome in the next phase of programming. 


Tag: Effectiveness Efficiency Sustainability Operational Efficiency Risk Management Inclusive economic growth Institutional Strengthening Technical Support

17.

2.12 Sustainability (continuation)

2.13.1 Management Arrangements Project Implementation and Adaptive Management: The project has been implemented efficiently, costeffectively, and been able to adapt to any changing conditions thus far. The project-level monitoring and evaluation systems, reporting, and project communications have aided in the project’s implementation positively.

2.13.2 Work Planning There were no delays in project start-up and implementation, and all work-planning processes are results-based.


Tag: Efficiency Communication Knowledge management Monitoring and Evaluation Partnership Policies & Procedures Project and Programme management Results-Based Management Risk Management

18.

2.14 UNDP and Delivering As One Ethiopia was among the pilot countries for UN “Delivering as one”(DAO) Reform. The DAO approach promotes the concept of “four ones”. One program, one budgetary framework, one leader and one team which requires the rigorous application of joint programming principles. The implementation leads to increased coherence, effectiveness and efficiency and result in greater collective impact of country-level interventions and ensuring a smooth transition of UNMIL. Through the DAO, the UN in Ethiopia hopes to provide more coordinated, relevant and effective support to the Government of Ethiopia purposely to increase the collective impact of UN interventions by positioning the system strategically in areas of distinct comparative advantage. UNDP, UNIDO and ILO in Ethiopia should take advantage of this and forge an alliance that contributes towards the establishment of Industrial Parks and SMEs clusters across the country. It is expected that such a synergetic alliance will be of great benefit in the GTPII and GTPIII phases.


Tag: Effectiveness Efficiency Joint UN Programme Partnership Policies & Procedures

19.

2.16 Program Management Implementation Arrangement In the implementation period of Institutional Capacity Strengthening for Industrial Development Program effort were effectively made to using national systems and linking closely with programmatic support to governance, institution building, sustainable economic transformation and the implementation of the GTP. There was also an active risk management based on monitoring on operational factors, demonstrating flexibility in programing and budgeting and addressing early detection and bottlenecks through a standardized M&E system. All the correspondence pertaining to M& E reports, quarterly and monthly reports between the UNDP project Team and the IPs and other stakeholders were analysed and deemed comprehensive and informative The program management is guided by a Results Based Management strategy that focuses on the achievement of results and resources managed by UNDP are disbursed through a Cash Transfer system based on AWPs prepared by IPs in collaboration with UNDP.

2.17 Theory of Change UNDP has successfully adapted to the theory of change that targets beneficiaries to address questions such as: who are we targeting and what changes are expected? What has changed and how has it impacted on the lives of the target groups? Are there visible signs that they are sustainable? The UNDP Institutional Capacity Strengthening for Industrial Development Program has been active particularly in areas where it has comparative advantage; eg, Governance and Sustainable Economic/Industrial Transformation, and other sustainable economic development activities that include the conducting of feasibility studies, project designs and human capital development. In GTP II the expectation is that the intervention should take a more program implementation focus in line with the UNDP Theory of Change though still focusing on the same value chain. It is expected that through the theory of change that the project will further move along the supply chain to induce efficiency, quality, productivity and competitiveness downstream, especially in the Industrial Parks, SME clusters within regional, district and marginalized community set-ups.


Tag: Effectiveness Efficiency Monitoring and Evaluation Results-Based Management Risk Management Theory of Change

Recommendations
1

Evaluation Recommendation or Issue 1:  Further strengthening the Capacity for industrial Development Program by continuing  to align interventions more closely to the short and medium-terms GOE priorities and introducing greater joint planning and focus on a program approach rather than tackling several projects.

2

Evaluation Recommendation or Issue 2 Building on the achievements, interventions shall continue to be on enhancing industrial output productivity, human capital development in the private sector, women empowerment in the industrial sector as well as job creation.  

3

Evaluation Recommendation or Issue 3:  Consideration of sustainability and exit strategy in any future project design and implementation, otherwise projects risk becoming an end in themselves.

4

KEY RECOMMENDATIONS

These are key and more general set of recommendations directed at UNDP and Implementing Partners:

UNDP

- While UNDP in general has been responsive to national priorities as broadly reflected in the Institutional Capacity Strengthening For Industrial Development Program and other policy frameworks, this can be further strengthened by continuing to align interventions more closely to the short and medium-terms GOE priorities and introducing greater joint planning and focus on a program approach rather than tackling several projects.

- Delivery of Institutional Capacity Strengthening for Industrial Development Program has been largely very good and this is not a critical issue going forward. Building on the achievements, interventions shall continue to be on productivity and human capital development in the private sector, especially if UNDP intervention is molded into a program in the remaining part of the GTP II period.

- UNDP Program should consider sustainability and exit strategy in any future project design and implementation, otherwise projects risk becoming an end in themselves.

- UNDP should develop a clear exit strategy which is currently weak through the appointment of strong IP project champions and focal points as well as IP project counterparts.

- The UNDP program design for the Industrial Development program was to be a catalytic and pool other donors to be on board. During, the project implementation period, the support on the program was limited to UNDP and thus more work requires for the next phase donors to buy in the program for better collaboration and program impact.

- The program is partly intended to influence institutional capacity. The way things are done at operational level should be managed at institutional level so that they can get full support towards what are needed for the industrial development and transformation demands. Therefore, a further continuous process of capacity building across Federal and Regional levelis still needed.

- The MTR team recommends an extension of the existing project (2013-2018) into the next phase of the Program (2019-22) inclusive of refinement of the strategic approach and program implementation as defined in the MTR recommendations. 

5

KEY RECOMMENDATIONS 

GOE and Implementing Partners

- The GOE has made tremendous and commendable efforts in the prioritization of its GTP development agenda (Vision GTP 2025), and deserves support to strengthen its capacity to coordinate the many faceted interventions especially those within the Industrial Parks and SME clusters.

- There is need to further strengthen the internal capacity of Ministry of Industry, Regional Bureaus, Regional Corporations and Institutes in program coordination and management andimplementation oversight.

- Strengthen existing structures at all levels of engagement to ensure that beneficiaries are consulted,sensitized, coordinated and participate inUNDP Program interventions and continually engaged in both the implementation and monitoring programs to get a buy in.

- GOE should utilize the MTR findings to lay the basis for ensuring sustainable implementation and closure of the current project/intervention and to inform the design of the next phase of the program.

- Consideration should be given to setting up/strengthening policy think tanks in the country - this becomes critical as Ethiopia prepares to transition out of GTP II and leap-frog into GTP III (2020- 2025).

- The need for GOE to seriously invest in and look at how to support the industrial development transformation agenda of government - the emphasis on jobs and rural development will require improved capacities at local level to own and coordinate the development agenda.

- Reporting has generally been working satisfactorily well, apart from the timing of report submissions which if done late delays the disbursement of the next tranche of funds to the program activities as this can only be done upon report approval. To avert this timing constraint, for timely fund and disbursement, MOI must be encouraged to report early, say through a working deadline of a month earlier to when the reports are officially due so that there is enough time for report reviewing which enables fund disbursement.  

1. Recommendation:

Evaluation Recommendation or Issue 1:  Further strengthening the Capacity for industrial Development Program by continuing  to align interventions more closely to the short and medium-terms GOE priorities and introducing greater joint planning and focus on a program approach rather than tackling several projects.

Management Response: [Added: 2019/01/01] [Last Updated: 2021/01/19]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The Capacity strengthening for industrial Development was designed to be implemented in a program approach. The same mode of implementation will be strengthened. The Program was also be designed following the GOE industrial development priority agendas and thus the program further focuses towards short to long term priorities
[Added: 2019/01/01] [Last Updated: 2020/08/03]
MOIT, UNDP 2019/03 Completed completed History
2. Recommendation:

Evaluation Recommendation or Issue 2 Building on the achievements, interventions shall continue to be on enhancing industrial output productivity, human capital development in the private sector, women empowerment in the industrial sector as well as job creation.  

Management Response: [Added: 2019/01/01] [Last Updated: 2021/01/19]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The Capacity strengthening for Industrial Development program centred on capacity development of the institutions that lead the industries. It had also projects on the private sector development through supporting the chamber of commerce and participation of the private sector leaders in conferences and trainings. This activity of human capital development in the private sector still focusing on the institutional capacity building will be strengthened. The next program cycle incorporates the sustainability of the program achievements continuation and exit strategy
[Added: 2019/01/01] [Last Updated: 2021/09/04]
MOIT, UNDP 2021/12 Initiated History
3. Recommendation:

Evaluation Recommendation or Issue 3:  Consideration of sustainability and exit strategy in any future project design and implementation, otherwise projects risk becoming an end in themselves.

Management Response: [Added: 2019/01/01] [Last Updated: 2021/01/19]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The program design for the Industrial Development program was to be a catalytic and pool other donors to be on board. During, the project implementation period, the support on the program, even though extensive donor mobilization is done , the support was limited to UNDP. Action: Pool partners and donors to support the Programme
[Added: 2019/01/01] [Last Updated: 2021/09/04]
UNDP 2021/12 Initiated History
4. Recommendation:

KEY RECOMMENDATIONS

These are key and more general set of recommendations directed at UNDP and Implementing Partners:

UNDP

- While UNDP in general has been responsive to national priorities as broadly reflected in the Institutional Capacity Strengthening For Industrial Development Program and other policy frameworks, this can be further strengthened by continuing to align interventions more closely to the short and medium-terms GOE priorities and introducing greater joint planning and focus on a program approach rather than tackling several projects.

- Delivery of Institutional Capacity Strengthening for Industrial Development Program has been largely very good and this is not a critical issue going forward. Building on the achievements, interventions shall continue to be on productivity and human capital development in the private sector, especially if UNDP intervention is molded into a program in the remaining part of the GTP II period.

- UNDP Program should consider sustainability and exit strategy in any future project design and implementation, otherwise projects risk becoming an end in themselves.

- UNDP should develop a clear exit strategy which is currently weak through the appointment of strong IP project champions and focal points as well as IP project counterparts.

- The UNDP program design for the Industrial Development program was to be a catalytic and pool other donors to be on board. During, the project implementation period, the support on the program was limited to UNDP and thus more work requires for the next phase donors to buy in the program for better collaboration and program impact.

- The program is partly intended to influence institutional capacity. The way things are done at operational level should be managed at institutional level so that they can get full support towards what are needed for the industrial development and transformation demands. Therefore, a further continuous process of capacity building across Federal and Regional levelis still needed.

- The MTR team recommends an extension of the existing project (2013-2018) into the next phase of the Program (2019-22) inclusive of refinement of the strategic approach and program implementation as defined in the MTR recommendations. 

Management Response: [Added: 2021/01/13] [Last Updated: 2021/01/19]

Key Actions:

5. Recommendation:

KEY RECOMMENDATIONS 

GOE and Implementing Partners

- The GOE has made tremendous and commendable efforts in the prioritization of its GTP development agenda (Vision GTP 2025), and deserves support to strengthen its capacity to coordinate the many faceted interventions especially those within the Industrial Parks and SME clusters.

- There is need to further strengthen the internal capacity of Ministry of Industry, Regional Bureaus, Regional Corporations and Institutes in program coordination and management andimplementation oversight.

- Strengthen existing structures at all levels of engagement to ensure that beneficiaries are consulted,sensitized, coordinated and participate inUNDP Program interventions and continually engaged in both the implementation and monitoring programs to get a buy in.

- GOE should utilize the MTR findings to lay the basis for ensuring sustainable implementation and closure of the current project/intervention and to inform the design of the next phase of the program.

- Consideration should be given to setting up/strengthening policy think tanks in the country - this becomes critical as Ethiopia prepares to transition out of GTP II and leap-frog into GTP III (2020- 2025).

- The need for GOE to seriously invest in and look at how to support the industrial development transformation agenda of government - the emphasis on jobs and rural development will require improved capacities at local level to own and coordinate the development agenda.

- Reporting has generally been working satisfactorily well, apart from the timing of report submissions which if done late delays the disbursement of the next tranche of funds to the program activities as this can only be done upon report approval. To avert this timing constraint, for timely fund and disbursement, MOI must be encouraged to report early, say through a working deadline of a month earlier to when the reports are officially due so that there is enough time for report reviewing which enables fund disbursement.  

Management Response: [Added: 2021/01/13] [Last Updated: 2021/01/19]

Key Actions:

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