A first-of-its-kind feasibility study lays the foundation for AFD to bolster Ethiopia’s ambitious development agenda.

Background  

In an effort to drive sustainable growth, the Government of Ethiopia launched the Second Program of Economic Reforms—an ambitious strategy to tackle pressing economic challenges and unlock new opportunities for Ethiopians. Recognizing the significance of this initiative, Agence Française de Développement (AFD) sought to design an innovative support program that would empower the government to implement critical reforms effectively.  

The Challenge  

Ethiopia’s economic reform strategy is far-reaching, requiring synchronized policy shifts across diverse sectors. Yet, given the scope and complexity of these reforms, a traditional blanket aid approach would be insufficient. AFD needed a tailored mechanism—one that would deliver financial and technical support at precisely the right times, ensuring reforms remain on track and impactful.  

Our Approach  

Triangle partnered with AFD to conduct a comprehensive feasibility study—the first of its kind for the agency. Drawing on extensive field research and stakeholder interviews, we developed a trigger-based model of support:  

• Targeted Reform Triggers: We identified critical milestones and reform “triggers” that, once met, would release additional funding and technical support.  

• Flexible Support Mechanisms: Rather than a one-size-fits-all grant, this model adapts to the pace of reform, ensuring resources are deployed exactly when and where they can make the greatest difference.  

• Evidence-Based Design: Our data-driven analysis shaped each component of the program, ensuring reforms are rooted in practical realities and aligned with Ethiopia’s broader economic goals.  

Results and Impact  

The feasibility study served as the blueprint for AFD’s first trigger-based support program, creating a clear framework for engaging with the Government of Ethiopia on complex policy shifts. Key achievements include:  

• Accelerated Reform Implementation: By tying funding to measurable reform milestones, the program incentivizes timely policy actions and fosters accountability.  

• Stronger Government Ownership: This approach places decision-making power in Ethiopian hands, letting local priorities guide how and when external support is used.  

• Enhanced Donor Confidence: A well-defined, evidence-based plan offers transparency and clarity on when and how disbursements will occur, boosting trust among multiple stakeholders.  

Looking Ahead  

This feasibility study marks a milestone for AFD’s engagement in Ethiopia, showcasing a nimble, outcomes-focused method of delivering development assistance. As Ethiopia moves forward with its Second Program of Economic Reforms, the trigger-based framework ensures that support will evolve in tandem with the country’s changing needs—ultimately fostering more sustainable, inclusive growth for the Ethiopian people.