DETERMINANTS OF DONOR FUND UTILIZATION EFFECTIVENESS: A CASE STUDY ON AFRICA CDC IPF, ETHIOPIA

Abstract

The goal of this study was to determine what determines the Africa CDC IPF initiative in Ethiopia's efficient utilization of donor funds. We sought to understand why money isn't always spent as effectively as intended. In order to accomplish this, we used surveys and an examination of important project documents to get feedback from 115 employees who were directly involved in the project at different government agencies. This research identifies five key elements that have a significant impact: sound financial management, capable leadership and management, appropriate technology and expertise, consistent donor behavior, and efficient procurement procedures. Many of the fundamentals are in place, but some significant obstacles are preventing progress. For example, throughout five years, the project only used roughly half of its allotted budget. The procurement procedure is a significant roadblock; it is frequently sluggish and hampered by red tape. Additionally, we discovered that equipment purchased with project funds isn't always accurately documented and that more specialist training in foreign aid management is required. In summary, for a project’s success, the proper functioning of all the components working together is essential where all these parts work together. When one part, like procurement, falters, it drags everything else down. On the other hand, all the components will also be challenged when one, such as procurement, fails. To change this, the initiative must engage in team training, improve asset tracking, streamline its purchasing procedures, and cultivate a more open and honest culture with its funders. The secret to making sure the donor's contribution actually fulfills it promises to get these components just right.