Ethiopia, Sustainable Development through Improved Local Governance

Objective and approach

SDLG will implement a 15-month support trajectory for the Ministry of Finance in Ethiopia on the execution of the new property proclamation law.

Even though the new proclamation hasn’t been officially approved yet, we can start breaking it down into specific administrative steps at regional and local levels. This detailed work will help with planning training activities, supporting IT tools, and creating a strategy and action plan. These plans will include the necessary laws, regulations, and guidelines at district and local level. The general objective of SDLG Ethiopia is to develop (by-)laws, regulations, guidelines and tools that support a realistic, not-to-complex, fit-for-purpose implementation approach for the execution of the new property proclamation by the Ministry of Finance.

Our approach is to support the Tax Policy Department to further develop the implementation of what now is a framework law. A one-year support facility within the department will assist in reaching the expected outcomes, by supporting the preparation and organization of workshops with key-stakeholders, conduct studies and provide technical advice. This will draw from VNG International’s experience with a pilot project in the Sidama Region on property taxation and international experiences in 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. Models for by-laws, regulations and guidelines for the implementation of the new proclamation on property tax as well as tools and best practices are available and shared amongst stakeholders.