REQUEST FOR EXPRESSION OF INTEREST

FOR INDIVIDUAL CONSULTANTS

AFRICAN DEVELOPMENT BANK

Ethiopia Country Office

P.O. Box 25543 Code 1000

Addis Ababa, Ethiopia,

Email: [email protected]

Tel: +251 115 177268

Fax: +251 115 546335

Preparation of the Country Diagnostic Note for Ethiopia

  1. Background
  1. The African Development Bank hereby invites individual consultants to indicate their interest in the following assignment: Preparation of the Country Diagnostic Note for Ethiopia. Over the last 15 years, Ethiopia’s economy has expanded at rates exceeding 10 percent annually and poverty declined from about 28% in 2011 to 23.5% in 2016. Structural transformation is occurring, albeit at a slow pace. However, inequality is noted to be raising and emerging macroeconomic imbalances and structural bottlenecks are putting a break on the high rates of growth as well as its inclusivity.
  1. The purpose of the assignment is to prepare a comprehensive Country Diagnostic Note (CDN) for Ethiopia to identify the binding constraints to inclusive growth and sustainable development. The CDN will serve as the guide for the Bank’s engagement with the Government of Ethiopia over the medium-term. It will provide an analysis of Ethiopia’s socio-economic situation and prospects and discuss the policies that need to be implemented to accelerate inclusive growth and achieve the Bank’s High-5s. The CDN will inform the strategic choices for the next Bank’s Country Strategy Paper for Ethiopia and selection of the areas of intervention.
  1. The proposed work will use existing national and sectoral reports as well as international data to generate a succinct story of Ethiopia’s growth and sectoral performance and identify emerging issues going forward. The CDN will underscore the enablers and binding constraints to inclusive growth and social transformation as well as the areas on which the Bank should focus its interventions over the medium-term.
  1. The specific tasks
  1. Prepare as well as collate macroeconomic and sector inputs and the draft the CDN for Ethiopia. The consultant will ensure that the CDN guideline is followed and that all required inputs are included and updated.
  1. Review existing national planning documents, knowledge products produced by the Bank, development partners and other sources to develop a strong context for the CDN and use the same to prepare the CDN.
  1. Apply comments by the Bank team to revise and update the entire report to ensure coherence of the story line, interlinkages and data consistency within and across the different chapters and sections. Revise and update the draft CDN following additional team comments.
  1. The assignment is expected to be completed within five months, starting on 1st June 2021 and be completed by 30 November 2020. The consultant will need to commit effort equivalent to two and a half person months. The consultant may work from their location and no mission is expected.
  1. The African Development Bank Ethiopia Country Office invites individual consultants to indicate their interest in providing the above-described services. Interested Consultants shall provide information on their qualifications and experience demonstrating their ability to undertake this assignment. This should include a motivation letter highlighting qualifications, experience in and reference to similar services/ assignments and proposed approaches. A detailed ToR is included for reference.
  1. The eligibility criteria, the establishment of a short list and the selection procedure shall be in conformity with the Bank’s Procurement Policy Framework under projects financed by the Bank Group, October 2015 Edition, available on the Bank Website at http://www.afdb.org. Please, note that interest expressed by a Consultant does not imply any obligation on the part of the Bank to include him/her in the shortlist.
  1. Interested individual consultants may obtain further information at the address below during

Bank’s working hours: 8am – 5pm.

  1. Expressions of interest must be received at the address below no later than 15 May 2021 and specifically mentioning Preparation of the Country Diagnostic Note for Ethiopia.

For the attention of: Ms. Netsanet Hussen

African Development Bank

Ethiopia Country Office,

P.O. Box 25543 Code 1000

Addis Ababa

Ethiopia,

Tel: +251 115 177268

Fax: +251 115 546335

Email: [email protected]; [email protected]

Terms of Reference

Preparation of the Country Diagnostic Note for Ethiopia

  1. General information

Work description:

Type of the contract:

Preparation of the Country Diagnostic Note for Ethiopia Individual consultant

Expected duration:

Expected start date:

Two and a half months

June 2021

  1. Introduction
  1. Over the last 15 years, Ethiopia’s economy has expanded at rates exceeding 10 percent annually and poverty declined from about 28 percent in 2011 to 23.5 percent in 2016. Structural transformation is occurring, albeit at a slow pace. However, inequality is raising, and emerging macroeconomic imbalances and structural bottlenecks as well as shocks are putting a break on the high growth rate of as well as its inclusivity. The African Development Bank (the Bank) together with other development have been supporting Ethiopia’s development priorities underscored in its development frameworks including the two rounds of the Growth and Transformation Plan (GTPI, 2010-2015 and GTPII, 2016-2020).
  1. In January 2021, the Planning and Development Commission launched a Ten-Year Development Plan, 2021-2030 that underscores the medium- to long-term development priorities. In 2020, the Bank’s Country Strategy Paper for Ethiopia, 2016-2020 was extended to 2022 to allow for a synthesis of the current growth trends, developments in the social sectors and emerging constraints that need to be addressed to ensure inclusive and sustainable growth. This is critical as Ethiopia transitions into middle income status over the next few years and industrialization and urbanization expand.
  1. Purpose of the assignment
  1. The purpose of the assignment is to prepare a comprehensive Country Diagnostic Note (CDN) for Ethiopia to identify the binding constraints to inclusive growth and sustainable development. The CDN will serve as the guide for the Bank’s engagement with the Government of Ethiopia over the medium-term. It will provide an analysis of Ethiopia’s socio-economic situation and prospects and discuss the policies that need to be implemented to accelerate inclusive growth and achieve the Bank’s High-5s. The CDN will inform the strategic choices for the next Bank’s Country Strategy Paper for Ethiopia and selection of the areas of intervention.
  1. The proposed work will use existing national and sectoral reports as well as international data to generate a succinct story of Ethiopia’s growth and sectoral performance and identify emerging issues going forward. The CDN will underscore the enablers and binding constraints to inclusive growth and social transformation as well as the areas on which the Bank should focus its interventions over the medium-term.
  1. The specific tasks to be undertaken in this assignment include
  1. Prepare as well as collate macroeconomic and sector inputs and the draft CDN for Ethiopia. The consultant will ensure that the CDN guideline is followed and that all required inputs are included and updated.
  1. Review existing national planning documents, knowledge products produced by the Bank, development partners and other sources to develop a strong context for the CDN and use the same to prepare the CDN.
  1. Apply comments from the Bank team to revise and update the entire report to ensure coherence of the story line, interlinkages and data consistency within and across the different chapters and sections. Revise and update the draft CDN following any additional team comments.
  1. Deliverables
  1. The selected consultant will prepare an inception report on the approach and understanding of the ToR, and envisaged documents to be reviewed as well as a time frame for delivery of the rest of the outputs.
  1. Draft of a comprehensive and updated Country Diagnostic Note for Ethiopia for review and discussion with the Bank team.
  1. Revised final report taking into account comments by the Bank team. This will also include relevant annexes, references and data sources.
  1. Expected duration
  1. The assignment is expected to last two and a half months spread over a period of five months. Expected start date is 1st June to 30 November 2021. The consultant will need to commit effort equivalent to two person months.
  1. The consultant will work under the supervision of the Chief Country Economist based in Addis Ababa, with overall guidance provided by the Lead Economist based in Nairobi.
  1. All work will be done remotely from the selected consultant’s location. Online sessions to present the findings of the work will be arranged by the Bank.
  1. Qualifications and experience
  1. At least a Masters degree or its equivalent in economics, statistics, social sciences, business administration or related field. A PhD in the related fields will be an advantage.
  1. At least 8 years of relevant professional and practical experience in policy analysis and developing diagnostics or strategy documents, preparing technical and analytical reports in related areas is required.
  1. At least 5 years of demonstrable experience in undertaking similar assignments for international organisations, public sector or large private sector organisations is required.
  1. Demonstrable understanding of the socio-economic landscape and current policy dynamics of the Ethiopian economy is desirable.
  1. Knowledge of and working on similar assignments in other developing countries will be an advantage
  1. Excellent communication skills including writing and presentation skills is required.
  1. Approach and scope of work
  1. The consultant will use a variety of data and background documents on growth, employment, poverty, sectoral developments, … and work with the Bank team to prepare, review and update the Country Diagnostic Note.
  1. In addition to an executive summary, the CDN will comprise of six chapters, based on a detailed annotated outline (annexed here).

Chapter 1: Introduction: contextualize the preparation of the CDN by providing key background information on the process and on Ethiopia as a low income country, fragility/post-conflict/transition, geographic setting/landlocked, resource base, structural factors, and policy/development goals, previous Management or Board’s recommendations affecting the preparation of the CDN. This chapter sets the tone and stage for the rest of the CDN.

Chapter 2: Macroeconomic assessment: discuss Ethiopia’s ‘economic story’ over recent decades, the economic model and the recent macroeconomic performance and prospects. Chapter 3: Assessment of cross cutting issues: assess the status and gaps in the cross-cutting issues that are corporate priorities of the bank. These include governance, climate change, fragility, gender and private sector development.

Chapter 4: Diagnostic of gaps/constraints by the Bank’s High-5s. Chapter four is the core of the CDN: it identifies gaps by sector and by the High-5 that require reforms, once identified they will be summarized under each sector/High-5.

Chapter 5: Priority areas of reforms. Based on the analyses in the previous chapters, the CDN identifies the set of priorities for achieving Ethiopia’s development objectives and maximize its progress toward the goals of inclusive and green growth. This chapter maps the necessary priority reforms to the gaps identified, with a focus on the reforms needed to achieve the Bank’s High-5s. It provides and prioritizes the recommended solutions to the gaps identified.

Chapter 6: Monitoring and evaluation of development outcomes. Adequate monitoring and evaluation are key for the effectiveness of development policies and outcomes. The CDN will review the capacity of Ethiopia’s statistical system to support effective design, monitoring and evaluation of its development programs and of the Bank Group’s CSP. Where serious data deficiencies are detected, appropriate remedial measures will be proposed. The Bank Group’s Statistics Department will provide the background information for this chapter.

  1. Remuneration

The proposed remuneration will be defined based on the consultant’s financial proposal in accordance with the Bank’s remuneration grid and budget availability. The cost should be inclusive of honorarium and reimbursable costs. Should the highest scoring consultant’s financial proposal exceed the budgeted amount, the consultant will be contacted for negotiations. If no agreement is reached, the next highest scoring consultant shall be contacted until a suitable financial proposal is achieved.

Annex 1: Detailed Guidance on Content of CDN Chapters

Chapter 1: Introduction

  1. Background
  • Contextualize the preparation of the CDN by providing key background information on Ethiopia – low income country, geographical setting, key development indicators, resource base, development agenda.
  • Include key highlights from the assessment giving critical gaps identified and suggested priority reforms to accelerate Ethiopia’s development.

Chapter 2: Macroeconomic Assessment

  1. Introduction
  • Give a brief introductory statement outlining what is contained in this section.

2.1. Country’s growth model and recent economic performance

  • Give a brief introductory statement outlining what is contained in this section.

2.1.1.   Country’s Economic and Development History

  • Country’s long-term development policy: What is Ethiopia’s ‘economic story’ over recent decades?

How has Ethiopia’s long-term development policies evolved over the last three decades?

  • Economic Growth model: What economic ‘model’ has Ethiopia adopted, e.g. natural resource based- economy, factor-/efficiency-/innovation-technology-driven economy; what success or not and why?

2.1.2.   Recent Growth Performance and Outlook

  • Recent Growth performance: Analyze recent growth performance over the past 5-6 years; average

aggregate growth rate. Evolution of aggregate growth rate during that period: continued increase/decline/ flat trend or fluctuations? Are there years with ‘outliers’ – unusual strong increase/decline? Explain the trends.

  • Medium-Term Growth Outlook over the next 2-3 years. Chart/graph the recent and outlook years.
  • Supply side components of GDP: How has  GDP composition  evolved over  time  (add  a  chart)?

Decompose the aggregate growth rate by supply side ‘sub-sectoral’ growth rates (e.g., agriculture, mining, financial services, transport, manufacturing, construction, etc.)

  • Demand side components of GDP: Similar analysis for the demand side (private consumption, government consumption, private investment, government investment and external balance). Assess

trends during the period under review (past 5-6 years) and explain why we see those trends.

2.1.4.  Spatial Distribution of Growth

  • Where does what economic activity take place? Growth poles, rural/urban dichotomy, etc.

2.1.5. Structural Transformation

  • Economic Structure: What is the economic structure of Ethiopia over the past decades (20-30 years)?
  • Structural Transformation: To what extent have we seen structural shifts in the economy? What has been the shift towards industrialization?
  • Constraints to structural Transformation: What are the binding constraints to industrialization and structural transformation?
  • Potential for Structural Transformation: What (sub)sectors and specific industries hold potential to boost structural transformation, industrialization and what needs to be done to unlock that potential (e.g. infrastructure development)? What reforms need to be undertaken to unlock that potential?
  • Productivity and complexity: To what extent have we seen changes in total factor productivity and level of economic complexity, and the creation of higher value-added employment, and if not why?
  • Sectoral productivity: What are the trends in sectoral productivity (agricultural, industrial and service sector productivity)
  • Factor productivity: Give trends in labor productivity and changes in capital intensity of production. If possible, changes in sectoral labor productivity and sectoral factor intensities.
  • To what extent has growth been inclusive, with wider access to sustainable socio-economic opportunities for the majority, while protecting the vulnerable? To what extent has growth been green?
  • Assess how inclusive and pro-employment growth is, e.g. growth-employment elasticity assessment, informality, etc.

2.2. Fiscal Developments

2.2.1. Budget Deficit: How has the overall budget deficit (% of GDP) evolved over the past 5-6 years? What is the average budget deficit over that period? Have we seen a continued increase/decline? Flat evolution or fluctuations? Have we seen years with ‘outliers’ when there was an unusual strong increase/decline in the deficit? Explain the trends – evolution of total revenue and total expenditure (% of GDP); revenue reforms/measures implemented? Revenue decline/increase due to GDP decline/growth? Tax revenue (% of GDP) in the context of peers; is there room for improvement. Similar analysis for expenditure: any reforms/measures implemented during the period under review? Trends in recurrent/capital spending as a percentage of total spending; implications of the changing trends? Analyse sectoral focus of capital spending?

2.2.2. Fiscal Outlook: Provide fiscal outlook for the next 2-3 years and explain why we expect these trends. Add chart (overall balance; revenue; expenditure) for recent/outlook years.

2.2.3. Fiscal Reforms: What fiscal policy reforms should the Government implement, notably to improve domestic resource base and increase the effectiveness of spending?

2.3. Public Debt Policy/Management

2.3.1. Current debt situation: Assess the current debt situation giving the trends in total public debt (% of GDP), broken down by domestic and external debt, decomposed by maturity, concessional and commercial. If possible, break down commercial by Eurobonds, bilateral and syndicated loans. Assess trends over the past 5-6 years. Explain trends and provide an outlook.

2.3.2. Debt Sustainability and risks: Discuss the most recent DSA and risks in the medium term (export performance, financing costs, revenue streams and upcoming spending, upcoming maturities etc). Discuss credit ratings (S&P; Fitch; Moody’s).

2.3.3. Debt Management Strategy: What has been Ethiopia’s debt policy in recent years? What’s its debt management strategy in the medium term? Any capacity issues? What debt management reforms should the Government implement to ensure debt sustainability?

2.4. Monetary Policy

2.4.1. Monetary Policy framework and tools: Is Ethiopia under inflation targeting framework or monetary aggregate targeting or exchange rate targeting? Which specific monetary policy tools are currently have been deployed over the past 5-6 years to influence monetary policy – interest rates, money supply or exchange rates?

2.4.2.  Current Monetary policy stance: Is current monetary policy loose or tight? When did the most recent change occur and what triggered change? Which tools of monetary policy are currently in use?

2.4.3. Effectiveness of Monetary Policy: How have prices (CPI, interest rates, exchange rate, wages) evolved during the past 5-6 years? Explain ‘outliers’ (e.g. a devaluation of the local currency in a particular year) if any. Inflation outlook.

2.4.4.  Exchange rate Policy: What exchange rate regime does Ethiopia have? Real exchange rate issues?

2.4.5. Monetary Policy reforms: Are there any recent monetary policy reforms? Are there any monetary policy reforms necessary to improve effectiveness of monetary policy?

2.5. Financial Markets

2.5.1. Recent Financial sector developments: Describe the structure of the financial sector in Ethiopia (commercial banks, insurance companies, etc.). Analyze recent developments in the financial sector

2.5.2. Financial sector stability and risks: Analyse the status of the financial sector health and risks particularly coming from fiscal and monetary policies including trends in non-performing loans due to accumulation of payment arrears by the fiscal side, monetary policy actions including interest rate capping that affects financial sector activity.

2.5.3. Financial Sector Reforms: Give the recent reforms in the financial sector and any other reforms necessary to maintain a healthy financial sector.

2.5.4. Efficiency of Financial markets in Ethiopia: Analysis of status and determinants of financial market efficiency.

2.6. External balance

2.6.1. Trends in Current Account: Assess overall trends of the current accounts over the past 5-6 years (average deficit in % of GDP): have we seen a continued increase/decline? Flat evolution or fluctuations? Have we seen years with ‘outliers’ when there was an unusual strong increase/decline in the deficit? Explain why we see those trends by looking at the evolution of imports and exports (% of GDP) referring to any government policies/reforms/measures impacting on exports/imports.

2.6.2. Current Account Outlook: Provide outlook for the current account balance for the next 2-3 years and explain why we expect these trends. Add a chart (overall current account balance; imports; exports) for recent and outlook years.

2.6.3. Financing of current account balance: How was the current account balance financed? What are main forex earners and what’s the role/magnitude of remittances (to cushion the current account balance deficit), FDI, tourism receipts (in % of GDP)?

2.6.4. Balance of payments: Give trends in balance of payments including trends in official forex reserves and the months of import cover.

2.7. Macroeconomic Stability

2.7.1. Based on the analysis of the fiscal, monetary, developments in the financial sector and the external balance, provide an assessment of the macroeconomic stability over the past 5-6 years from a broad perspective: have there been general macroeconomic imbalances/issues or rather overall stability?

2.7.2. What have been main macroeconomic challenges and policies implemented? Reliance on monetary or fiscal policy to address imbalances, or on a well-managed policy mix?

Chapter 3: Assessment of Cross Cutting Issues

  1. Brief discussion of what is contained in the chapter 

3.1. Governance 

  • Status of Economic and Financial Governance in Ethiopia: Analyze Economic and Financial Governance/ public financial management (PFM) reforms over the past 5-6 years. What were the findings of the last PEFA(s) and how has performance improved? What have been key reforms undertaken? What are areas of improvement and persistent challenges? Analyze trends in the Mo-Ibrahim Index of Governance in recent years: what are areas of improvement and persistent challenges? 
  • Bank’s Assessment: Assess performance under the Bank’s Country Policy and Institutional Assessment (CPIA) in the past 5-6 years: what are areas of improvement and persistent challenges? 

Discuss main outcomes of the Bank’s Fiduciary Assessments. 

  • Governance of state-owned-enterprises (SOEs): Assess the governance of State-Owned What are some of the governance challenges in the SoEs and what should be done to improve performance of SoEs? 
  • Reforms necessary to improve economic and financial governance: Propose reforms to be implemented by the Government to improve Economic and Financial Governance.

3.2. Climate Change

  • Assessment of the extent of climate change in Ethiopia
  • Manifestation of climate change (prolonged droughts, dwindling water sources, frequent floods, rangelands degradation and changes in the sea level)
  • Implementation of Ethiopia’s Nationally Determined Contributions (NDC) to support its transition to a low-carbon development pathway
  • Discuss government strategies and interventions to mitigate the effects of climate change
  • Suggestions to boost adaptation and climate-resilient development in Ethiopia
  • Mobilizing financing to finance climate action and the CCAP2 24

3.3. Gender

  • Assess the extent of gender disparities in Ethiopia: Wage gap (extent and causes including economic, social and cultural); ii. Gender violence (extent and causes including economic and cultural); iii. Sexual harassment (extent and causes); iv. Women’s health; v. Work-life balance; vi. Existing strategies to close the identified gender gaps and potential strategies it could adopt but not yet in place; and vii. Strategies for women economic empowerment

3.4. Fragility in Transition Countries

  • Discuss political fragility (based on the more comprehensive Fragility Assessment to be annexed to the strategy). Specifically, the discussion should focus on;
  • Political fragility

Regional/ethnic representation in the political system (government & public institutions), political participation, corruption and bribery, political instability, capacity of policing institutions, capacity of defense, institutions, presence of criminal violence, presence of armed conflict, independence and fairness of judicial institutions, capacity and effectiveness of justice institutions, impunity of senior officials, exclusion/access to justice and perception of population

  • Economic fragility

Economic policies and effectiveness, distribution and access to public services, economic/income inequality, poverty, ease of association and organization of civil society, communication/connectivity, sectarian/group-based polarization/exclusion, youth and gender marginalization, resiliency to economic shocks, insecurity emanating from neighboring counties and transnational crime.

  • Social and environmental fragility

Environmental policy/conservation, emergency preparedness, environmental pressures and vulnerability to natural disasters and in-access to food/nutrition

3.5. Private Sector Development

3.5.1. Structure of the private sector in Ethiopia: Analyze the size of the private sector in the economy (% of GDP); discuss structure of the private sector (SMEs, intl. companies, etc.).

3.5.2. Private sector business environment: Discuss standard business indicators (Doing Business; Global Competitiveness Index) and bring out key challenges identified by these indices. What is the regulatory landscape in Ethiopia and how is it affecting private sector activity?

3.5.3. Contribution of the private sector to the economy: To what extent is the private sector part of local/regional/global value chains; productivity and employment patterns/issues. What is the share of private sector employment compared to the public sector and compared to private sector share of employment in regional countries?

3.5.4. Opportunities in the private sector: What business/market opportunities/potentials exist for the private sector and what are constraints/bottlenecks, which, if removed, would unleash private sector activity and employment? Particular attention to be given to ‘soft’ market entry barriers in specific (sub)sectors of the economy, which if removed would result in greater competition and crowding-in of private companies, thereby spurring growth and employment.

Chapter 4: Diagnostic of Gaps/Constraints by the High-5s 4. Introduction

Highlight briefly what the chapter contains. The chapter should identify gaps by sector/by High-5 that require reforms. This section will endeavor to compare as much as possible the status of Ethiopia with regional peers and best practice.

4.1. Assessing gaps in the agricultural Sector

4.1.1. Overall development profile of the sector: analyze relevant sector indicators (e.g. access, cost, reliability, supply/demand and gaps, etc.,), past trends and outlook. Charts/graphs to be used to illustrate development/trends, while the text explains the reasons for the development/trends.

4.1.2. Spatial Distribution and potential value chains: Analyze geographical/spatial aspects (e.g., regional disparities within the country) of the sector. Are there clusters in the sector? Are there any potential value chains in the sector?

4.1.3. Efficiency of Markets: What are production and demand patterns? How are markets organized and how efficient are they? Are there any market failures, legal/regulatory or competition issues hindering market entry of private sector companies?

4.1.4. Reforms: What reforms were undertaken in recent years and what are the reforms that need to be undertaken going forward to address the issues identified?

4.2. Assessing gaps in the industrial Sector

4.2.1. A brief history of Ethiopia’s industrial policies

4.2.2. Status of industrial development in Ethiopia

4.2.2.1. Trends in manufacturing value added to GDP

4.2.2.2. Share of employment in industry as a proportion of total employment)

4.2.3. Enablers and constraints to industrial development in Ethiopia

4.2.3.1.  Status of infrastructure in Ethiopia (quantity and quality)

4.2.3.2.  Regulatory and institutional frameworks for industrial development in Ethiopia

4.2.4. The role of the private sector in the accelerating industrial development

4.2.4.1.  Extent of private-public partnerships (PPPs)

4.2.4.2.  Status of PPPs, legal and regulatory framework in place to promote PPPS

4.2.5. Strategies to foster successful industrial development in Ethiopia

4.3. Assessing gaps in regional integration and trade

4.3.1. Institutional Framework for Regional Integration and Trade: Discuss Ethiopia’s membership to the regional trading blocs including membership in RECs and WTO, trade openness, tariff bands

4.3.2. Facilitators and Barriers  to Trade and Regional  Integration:  Assess  the  quality  of  physical infrastructure connectivity to neighbors and the region (hard constraints). Existence of NTBs to trade and other soft constraints to the free movement of labor and capital

4.3.3. External Competitiveness: Discuss the Doing Business indicator “Trading across borders” as well as the Africa Regional Integration Index

4.3.4. Trade flows: What are the main 5 or so export/import destinations (indicate %-age of each destination of total exports/imports). Which route do exports/imports take, what are trade corridors? What are the potential trade corridors that need to be explored?

4.3.5. Trade structure: what is Ethiopia actually exporting/importing? Are exports high value-added goods, or mostly unprocessed raw materials? Are imports raw materials that are then being processed in-country and exported?

4.3.6. Trade and Regional Trade Reforms: Propose reforms to be implemented by the Government to improve regional integration and trade. SICs due to their very geographic nature as islands often suffer from poor integration in the regional and global economy. This section should bring out clearly the related issues and present options/recommendations to Government to address them.

4.4. Assessing gaps in the Social Sector (Improve the quality of life for the people of Africa)

4.4.1.   Skills for employability in Ethiopia:

  • Employment trends by gender, age and regions
  • Unemployment and underemployment of youth and women
  • Causes of unemployment (including skills mismatch etc.)
  • Adequacy of education and training facilities in Ethiopia (infrastructure, teacher-pupil ratio etc.)
  • Status of education in Ethiopia (enrolment rates, transition rates etc.)
  • Poverty and inequality profiles by region and gender
  • A rigorous assessment of causes of poverty and inequality in Ethiopia

4.4.3.  Access to water and sanitation

  • Extent of access to clean water and sanitation facilities

4.4.4.   Strength of health systems

  • Severity of disease burden (the impact of a health problem as measured by financial cost, mortality, morbidity, or other indicators)
  • Health burden in Ethiopia
  • Trends of population with access to health facilities within a reasonable distance from their homes

Chapter 5: Priority Areas of Reforms

[details as included in the ToR]

Chapter 6: Monitoring and Evaluation of Development Outcomes [details as included in the ToR]