Ethiopia, Sustainable Development through Improved Local Governance

SDLG will implement a 15-month support trajectory for the Ministry of Finance in Ethiopia on the execution of the new property proclamation law. This law provides the national framework for property registration, valuation and taxation, aimed at strengthening local revenue systems.

Objective

Even though the new proclamation has not yet been officially approved, preparatory work can already start by translating it into concrete administrative steps at regional and local levels. This work will support the planning of training activities, the development of IT tools, and the preparation of an overall strategy and action plan.

These plans will include the required (by-)laws, regulations and guidelines at district and local level. The overall objective of SDLG Ethiopia is to develop (by-)laws, regulations, guidelines and tools that support a realistic, not overly complex, and fit-for-purpose approach to implementing the new property proclamation by the Ministry of Finance.

Approach

Our approach is to support the Tax Policy Department in further developing the implementation of what is currently a framework law. A one-year support facility embedded within the department will help achieve the expected results.

This support will include preparing and organising workshops with key stakeholders, conducting targeted studies, and providing technical advice. The approach builds on VNG International’s experience from a pilot project on property taxation in the Sidama Region, as well as relevant international experience from other African countries.

Results

The expected results are:

1. Enhanced consultations between stakeholders at Federal, Regional and Local government levels on administrative processes and approaches needed for implementation of the federal proclamation as well as commitment by these stakeholders for (simple) approaches on property registration, mass valuation, billing, collection and enforcement.
2. Increased awareness and buy-in amongst stakeholders at Federal, Regional and Local government levels on the implementation of the proclamation.
3. Availability and sharing of model by-laws, regulations and guidelines for implementing the new property tax proclamation, along with tools and best practices for stakeholders.