UNIDO’s Programme for Country Partnership (PCP) is a multi-stakeholder partnership model that supports countries in achieving inclusive and sustainable industrial development. Aligned with the national development agenda and focused on sectors with growth potential, the PCP is helping Ethiopia advance its industrial development goals. It builds synergies with ongoing partner interventions, leverages funds and mobilizes investments. The PCP for Ethiopia is rooted in the national development strategy, the Growth and Transformation Plan II (2015-2020), whose overall objective is for Ethiopia to become a middle-income country by 2025. The PCP focuses on developing light manufacturing in three priority sectors: agro-food processing, leather and leather products, and textiles and apparel. The Programme also integrates cross-cutting interventions such as institutional capacity-building, trade facilitation, and environment and energy.

UNIDO provides advisory services to the government on industry-related issues, leads Programme design, provides multidisciplinary technical assistance, and facilitates overall PCP coordination. The various technical projects and programmes are implemented by UNIDO and other development partners, and coordinated through national governing bodies. Evaluation: A mid-term evaluation of the PCP is being conducted in 2017. At the end of the fifth year, an in-depth independent evaluation will be carried out.

Strengthening institutional capacity is one of the most important cross-cutting issues as Ethiopia endeavours to capitalize on the large investment flows coming into the country, and to achieve its industrial development goals. Through the PCP, UNIDO is working to: (1) strengthen the analytical capacity of the Ministry of Industry in the generation of industrial intelligence and policy (primarily in agro-industries); (2) establish an “industrial observatory” to observe and benchmark industrial practices in other countries to help inform policy and industrial practices in Ethiopia; and, (3) leverage impact for inclusive and sustainable industrial development through South-South and triangular cooperation. Technology transfer is critical to industrial development and will be facilitated under the PCP primarily through the establishment of and operations in industrial zones and integrated agro-industrial parks, as well as technical interventions by UNIDO and other development partners.

A national coordination mechanism was established under the leadership of the Government of Ethiopia. It brings together all relevant ministries and PCP partners, including United Nations agencies, financial institutions, the business sector and other development partners. It is composed of a Joint Steering Committee (JSC), chaired by the Ministry of Finance and Economic Cooperation and the Ministry of Industry, and several technical task forces. The JSC guides overall implementation, prioritizes programme and project activities, ensures coordination among partner interventions, mobilizes resources and monitors PCP progress. The JSC is supported by several national technical task forces that are responsible for specific areas/sectors of the Programme. A UNIDO Secretariat provides support to the national coordination bodies, and serves as a neutral broker. It is housed within UNIDO’s regional office in Addis Ababa, Ethiopia. UNIDO also has a PCP Ethiopia Technical Team at its Vienna headquarters to support overall coordination and implementation of the Programme.

The Government of Ethiopia, regional Ethiopian governments, United Nations agencies, financial institutions, the business sector and other development partners.