The Ethiopian Government has developed an innovative tool to leverage opportunities, close gaps in value chains and grasp nascent opportunities, all with the overall objective of advancing sustainable development objectives: namely, the Transformation Triggering Facility (TTF). Human Dynamics has been engaged in a EuropeAid-funded project to ensure the smooth delivery of this focused TTF instrument.
TTF seeks to support the competitiveness of companies in priority sectors; it focuses on building Ethiopia’s comparative advantages. This includes targeted grants to develop forward market and backward supplier linkages in areas that can serve as example and model for others to follow. It entails financing solutions to fix breakdowns and gaps that prevent vertical integration and value adding in Ethiopia. The provision of grants will rely on detailed risk assessment and careful monitoring to ensure that expected outcomes are achieved.
Four main areas have been identified for assistance: boosting Small and Medium Enterprise; enhancing business skills; developing a 'hub concept' for several areas where Ethiopia has a competitive advantage (particularly Aviation and Medical hub); and broad capacity building and fine-tuning.
For example, the Ethiopian Government has identified a lack of formal higher education attainment as a structural weakness that TTF could help fix through enhancing business skills within the community. In this respect, Human Dynamics is working with the Ethiopian Government to develop an EU-Ethiopian Business School to provide specialist world-class management training. Graduates of this will lay the foundations for a network of tertiary qualified business people in Ethiopia, with expected multiplier effect on the Ethiopian economy.
Throughout this process, the Team are working to deepen the capacity and skills of those in Government so they can respond appropriately to changing circumstances.