IFC Investment Climate TF Phase II 2018-24 - IFC MDI EICP Phase II (2018-22) IFC Investeringsklimat TF Fas II 2018-24 The intervention seeks to use Technical Assistance to strengthen the business enabling environment in Ethiopia. The main focus areas are 1) Sub-regional investment climate in Oromia and Amhara, 2) Tourism and Services sectors, 3) Improved international Doing Business Rating (DBR) 4) Trade facilitation, 5) Investment Policy and Promotion.
The results are expected to materialize primarily in the areas of improved policies and regulations, which in turn are expected to improve DBR and reduce transaction costs for the prive sector. At the higher level this is primarily expected to stimulate growth for firms with expansion and employment effects for the targets groups of development cooperation. Insatsen syftar till att med teknisk assistens hjälpa berörda Etiopiaks myndigheter att stärka landets investeringsklimat, med fokus på följande områden: 1) Investeringsklimat i Oromia och Amhaha 2) Turism och servicesektorer 3) Doing Business rating (DBR) 4) Trade facilitation 5) Investeringspolicy och främjande. Resultaten förväntas materialiseras huvudsakligen i form av förändringar i policies och regelverk, som i sin tur förbättrar DBR och reducerar transaktionskostnader för näringslivet (besparingar för privata sektorn). Högre mål är primärt att dessa besparingar stimulerar tillväxt och skapar jobb för biståndets målgrupper. The overall objective is stated broadly and in a non-standard way.  As stated in the most recent proposal (September 2018), the core objective is to:
To "push for business and investment climate reforms… consistent with this broad objective [of developing] … a robust private sector" with specific objectives denoted as "Pillars”"
·         Pillar I:  Improving the Doing Business Environment – improving the economy wide investment environment that affects decisions to open and operate a business.
·         Pillar II:  Expanding Market Opportunities – delivering sector and market-specific solutions to allow firms to expand and compete in domestic and international trade.
·         Pillar III:  Investment Facilitation and Export Competitiveness – investment promotion and regulatory reform work on priority sectors including tailored regulatory advocacy on export sectors.
Five projects are planned to achieve these overall objectives, each with their own specific objectives:
Project 1:      The Sub National Investment Climate project seeks to: 
a) “strengthen regional investment promotion, retention and expansion in selected/target sectors to be defined in consultation with each regional government; 
b) enhance regional business service delivery through streamlined business regulatory and tax administration procedures; and 
c) strengthen inter-agency coordination and public-private dialogue for improved regional investment climate.”
Project 2:         Ethiopia Tourism Sector Competitiveness project seeks to “improve the performance of tourism sector in Ethiopia through better management of meetings Conferences and Events (MICE), stopover tourism, and digital marketing.”
Project 3:         Ethiopia Doing Business project seeks “to improve Ethiopia’s Business Climate and make it work for all classes and types of business” (“improve Ethiopia’s DTF score by a minimum of 5 points”)
Project 4:         Ethiopia Trade Facilitation project seeks to “address trade logistics issues that are holding back trade in Ethiopia.”
Project 5:         Investment Policy and Promotion (IPP) project (IPP phase II) seeks to: 
a) “further consolidate and expand the institutional and legal reforms realized through phase I of the project through the development of supporting policies and institutions for conducive investment policy making and promotion, 
b) reduce legal and administrative barriers to foreign investment, 
c) strengthen and broaden targeted investment promotion and facilitation in priority sectors through the use of a value chain approach (target sectors will be defined through further consultation with the Government of Ethiopia (GoE), and 
d) enhance investment retention and expansion through increased investor confidence and targeted investment climate improvements (including reforms aimed at enhancing export competitiveness of investments).