!!
USAID/ETHIOPIA WTO ACCESSION PLUS 
PROJECT EVALUATION 
EVALUATION REPORT 
March 2010
This document was produced for review by the United States Agency for International Development (USAID/Ethiopia).
It was prepared by The Mitchell Group, Inc. under the SEGIR GBTI II IQC, Contract Number EEM"I"00-07-00002-02
USAID/ETHIOPIA WTO ACCESSION PLUS PROJECT EVALUATION
CONTRACT NUMBER: EEM-I-00-07-00002-02
Under SEGIR GBTI II IQC
Report Submitted to: USAID/Ethiopia
Report Prepared By:
James L. Kenworthy, Team Leader, TMG
Fikremarkos Merso Birhanu
And
Martha Belete Hailu
March 28, 2010
The Mitchell Group, Inc.
1816 11th Street N.W.
Washington, D.C. 20001
Telephone: (202) 745"1919
Facsimile: (202) 234"1697
Internet: the"mitchellgroup.com
!"#$%&'(&)'*+%*+,&
Acronyms ........................................................................................................................................ 1
Executive Summary ........................................................................................................................ 2
I. Project Objective and Scope ................................................................................................... 6
II. Project Context ........................................................................................................................ 6
III. Project Assessment Objectives and Methodology ............................................................... 7
1. Evaluation Objective ............................................................................................................ 7
2. Specific Evaluation Questions to Be Answered .................................................................. 7
3. Methodology ........................................................................................................................ 8
IV. Assessment of Individual Components of the Project ......................................................... 9
1. Program Effectiveness ......................................................................................................... 9
2. Project Management, Coordination and Partnerships ........................................................ 12
3. Project Relevance ............................................................................................................... 14
4. Program Sustainability ....................................................................................................... 16
V. Lessons Learned and Recommendations .............................................................................. 17
1. Shift in Project Focus ......................................................................................................... 18
2. The Private Sector .............................................................................................................. 18
3. Capacity Building for MOTI and Other Line Ministries ................................................... 19
4. Coordination and Collaboration with Other Donors .......................................................... 19
5. Focus on Contentious Issues .............................................................................................. 19
6. User-friendly Outline ......................................................................................................... 19
7. Realistic Budget ................................................................................................................. 19
8. Housing at the MOTI ......................................................................................................... 20
9. Project’s Chief of Party ...................................................................................................... 20
Annex A: List of Persons Contacted 
Annex B: Prioritized Needs of the MOTI from the Project
Acronyms 
BAH Booz Allen Hamilton 
COMESA Common Market for Eastern and Southern Africa 
DAG Donor Assistance Group 
EU European Union 
GOE Government of Ethiopia 
IGAD Inter-Governmental Authority on Development 
MFTR Memorandum on Foreign Trade Regime 
MOARD Ministry of Agriculture and Rural Development 
MOFED Ministry of Finance and Economic Development 
MOTI Ministry of Trade and Industry 
NGO Non-Governmental Organization 
PASDEP Plan of Action for Sustainable Development to end Poverty 
SPS Sanitary and Phytosnaitary 
TBT Technical Barrier to Trade 
USAID United States Agency for International Development 
WTO World Trade Organization 
 
1
Executive Summary 
The USAID/Ethiopia Accession Plus Project is designed to continue the pursuit of Ethiopia’s 
WTO accession while simultaneously promoting broad business environment reforms that will 
increase growth and economic development and enhance the benefits of WTO accession. The 
Project had an effective date of 27 November 2007 and has an estimated completion date of 29 
September 2010. 
The purpose of this evaluation is to assess the progress made by the Project towards the 
objectives as outlined in the TOR and described herein and offer recommendations for increasing 
the impact of Project activities through reprioritizing Project activities, foci, and approaches. 
WTO accession includes five steps: (1) initial notification to the WTO of Ethiopia’s desire to 
accede; (2) establishment of a Working Party of WTO members; (3) submission by Ethiopia of 
its Memorandum of Trade Regime (MFTR) for review by the Secretariat and the Working Party; 
(4) questions to the GOE by members of the Working Party regarding provisions of the MFTR 
with answers from the GOE; and (5) negotiation of the protocol of accession. For the last 10 
years or so, the process has also included bilateral negotiations between the GOE and various 
WTO members regarding their concerns and requirements as a condition for allowing accession. 
Working Party members (USA, Canada, and EC) have submitted over 300 questions to the GOE 
regarding provisions of the MFTR. The GOE answered these questions in January 2008 and 
March 2009 with substantial assistance from the Project. The Project is expected to assist the 
GOE with regard to all steps of the accession process. 
Under the TOR, the Project was also required to review GOE laws and regulations relevant to 
both WTO accession and to an expanded commercial legal framework. The Project was to help 
establish priorities for a legal reform agenda in consultation with the MOTI, private sector 
stakeholders, and the Donor Assistance Group. The Project was also expected to promote the 
GOE’s active participation in regional trading blocs of Eastern and Southern Africa. 
Project activities included: (1) ongoing accession assistance; (2) assistance with an improved 
commercial law framework; (3) expanded regional trade involvement; and (4) 
coordination/collaboration with other donors, institutions, and agencies. Among Project 
deliverables mandated by the TOR are: (1) a Memorandum of Understanding between 
USAID/Ethiopia and the MOTI regarding Project assistance; (2) drafting or review/commentary 
on GOE laws and regulations to facilitate WTO accession; (3) Project training and outreach to 
stakeholders; and (4) coordination/collaboration with other donor counterparts. 
The methodology as mandated in the TOR for the evaluation includes examination and 
commentary on: (1) Project effectiveness; (2) Project management, coordination, and 
partnerships; (3) Project relevance; and (4) Project sustainability. The TOR posits a number of 
questions to be answered for each of these enquiry areas. 
2
Project Effectiveness 
Project staffers provided technical assistance to the MOTI in its preparation of the MFTR, 
formulation of answers to Working Party questions, and other technical documents needed for 
accession (the ACC documents). They also prepared legal memos on different areas of law and 
identified gaps in the commercial law framework to ensure conformity with GATT/WTO rules 
for global trade while making suggestions for reform. However, the Project has been only 
moderately effective in meeting planned activities in WTO accession and commercial/regulatory 
reform and even less effective with regard to collaboration with other donors, outreach to the 
private sector, and in aspects of regional trade. Its effectiveness was limited partly because of 
reasons beyond the control of the Project. In this regard, it is difficult to pinpoint and measure 
the impact attributable to the Project because of the nature of the support it provides. The 
ultimate decision to make progress on its WTO accession and enable commercial law reform 
rests with the GOE. 
In relation to the potential role of the Project for further reform, there appear to be both 
opportunities and challenges. Now that the structural reform process at the MOTI is more or less 
complete and a new MOTI Directorate for Trade Relations and Negotiations has been 
established with a very enthusiastic team, it is expected that more effective activities could be 
undertaken in consultation wit the Directorate. On the other hand, there is concern that the GOE 
may pay more attention to the upcoming national elections and less to its WTO accession. 
The MOTI clearly views the Project as a valuable support and feels it has generally been 
responsive to GOE needs. Nevertheless, the MOTI has concerns on the way the Project operates 
and has called for more transparency in allocation of its budget by USAID/Ethiopia and the 
manner of uses of the budget. They also wish to have more consultations and engagement in the 
activities of the Project such as the determination of its activities and recruitment of consultants. 
Because of this, the MOTI believes that the MOU between it and USAID needs to be revised 
with a view to addressing their concerns. 
With regard to the private sector, the Project has organized several workshops on WTO issues to 
which the private sector was invited. However the role of the Project in strengthening the private 
sector’s understanding and involvement in WTO accession and commercial law reform has been 
limited. The private sector, particularly the business community, feels that their involvement in 
Project activities has been limited largely to participation in the workshops and there has been 
little consultation with them as to their priorities and needs. In particular, there is a feeling that 
there has not been sufficient collaboration with either the National or the Addis Ababa Chambers 
of Commerce. 
There have also been “success stories” for the Project. For example, it assisted the MOTI in 
preparation of the nearly 200 page MFTR, with the development of the answers to Working 
Party questions, and prepared a number of legal memos identifying gaps for reform in the 
commercial law framework. It also hosted a legislative drafting course for lawyers and staff of 
the MOTI and other ministries. The Project also collaborated with the Ethiopian Arbitration and 
Conciliation Centre and the Law Faculty of Addis Ababa University to conduct a moot court 
competition on arbitration. 
3
The major obstacles to success has been the slow pace of the accession process caused, inter alia, 
by the restructuring of trade-related authorities and responsibilities in the MOTI, reticence on the 
part of other ministries of the GOE, and concerns regarding the forthcoming national elections. 
Project Management, Coordination, and Partnerships 
The evaluation team believes that the placement of the Project within the MOTI has helped it to 
accomplish its objectives. Moreover the Project also serves as a bridge between the GOE and the 
private sector. It does however need to improve its relationship with the private sector and can 
actually take advantage of its being housed within the MOTI to communicate concerns of the 
private sector and business community to the GOE. The Project should partner with the National 
and Addis Ababa Chambers of Commerce in order to identify the priorities and concerns of the 
business community while conducting workshops and trainings. Many businesspeople harbor 
unreasonable fears and expectations about the impact of accession on their firms and their 
commercial activities. They would like to know what accession means for them. In this regard, 
the Project needs to identify areas of concern and poor understanding to devise effective outreach 
and public education campaigns in order to improve awareness among the business community 
of the commercial and economic benefits to Ethiopia by its accession to the WTO. So far the 
Project has not partnered with the business community, including the chambers of commerce, on 
any specific project. Even in the outreach activities organized by the Project, the chambers were 
not consulted on areas of concern for the business community but were simply invited to attend 
the meetings. 
Also, there are a wide range of stakeholders and counterparts pursuing the reforms targeted by 
the Project. The tasks envisioned to be undertaken by the Project require significant interaction 
and collaboration with these other organizations in order to promote overall synergy of their 
goals and activities. One form of collaborative work could be provision of direct support to other 
organizations and their projects. 
With regard to better integration of the Project into the overall USAID/Ethiopia program, it 
should be noted that the Project has one very distinct focus – Ethiopia’s WTO accession, and that 
should remain its central focus. It would not support achievement of that focus by immersing it 
into other USAID/Ethiopia projects. However, since there are several donors and projects 
dealing with aspects of commercial law revision, that part of the Project’s focus could usefully 
be integrated into an overall commercial law reform project. 
Project Relevance 
Overall, the goal of USAID economic activity in Ethiopia is increased economic growth and 
development with the private sector as the engine of that growth. The Project was designed to 
continue and facilitate Ethiopia’s accession to the WTO while also promoting broad business 
environment reforms that will enhance the benefits from Ethiopia’s WTO membership. Still, the 
Project has a limited budget and staff, so its first priority should be facilitating WTO accession in 
its activities. The evaluation team believes that the Project goes too far afield in the area of 
commercial law reform. It should not get involved in aspects of Ethiopia’s commercial law 
regime that do not have direct relevance to or consequences for its membership in the WTO. 
Project staff have said they were confronted with budget constraints that inhibited them in 
providing capacity building for trade negotiation (a concern of the MOTI). Too wide expansion 
4
of non-WTO commercial law reform is a significant budgetary expenditure that limits the 
Project’s attention to trade negotiating capacity. 
Project Sustainability 
One-time only activities that cannot be continued in the future are unlikely to achieve 
sustainability. The Project will, in large part, be considered sustainable if and when Ethiopia 
accedes to the WTO and, then, in the longer term by the success for its people if it realizes the 
economic and trade benefits from its membership over time. Action by the GOE to support 
meaningful and successful membership in the WTO will promote sustainability. Project 
sustainability will also occur to the extent there are reforms in the commercial legal system 
directly relevant to the GOE’s membership in the WTO and revisions in the Ethiopian legal 
system and in its legal, regulatory, and policy formation actions. So, to the extent the Project’s 
activities empower relevant GOE ministries and individuals through training, thereby increasing 
their commitment to ensuring that the GOE implements its obligations and commitments under 
the GATT/WTO framework of rules for global trade, the Project will achieve sustainability. 
Recommendations 
This report includes specific recommendations to deal with problems encountered in the 
administration and operation of the Project. These recommendations are found on pages 18-20 
below.
5
I. Project Objective and Scope 
The Project continues the focus and efforts of its predecessor, the Doha Project and is intended 
to: (a) facilitate Ethiopia’s accession to the World Trade Organization (“WTO”); (b) address 
gaps in the overall trade and investment climate that limits Ethiopia’s ability to take advantage of 
WTO membership once attained; and (c) facilitate Ethiopia’s ability to take advantage of African 
regional economic integration and trade agreements. The Project provides the following forms of 
technical assistance: 
(1) legal reform (expert technical assistance in analyzing and revising the legal and 
regulatory regime to harmonize with the GATT/WTO framework of rules for global trade 
but also to induce market-oriented economic growth and development reforms); 
(2) outreach to governmental and non-governmental organizations (NGOs) via workshops, 
seminars, presentations, published articles, and other mechanisms for building 
understanding and support for WTO membership and the reform agenda; and 
(3) capacity building through training, education and mentoring of individuals and 
institutions responsible for ongoing implementation, maintenance, and expansion of 
reforms that support increased trade and investment. 
In summary, the Project is designed to continue the pursuit of Ethiopia’s WTO accession while 
simultaneously promoting broad business environment reforms that will increase growth and 
economic development and enhance the benefits of WTO accession. The Project had an effective 
date of 27 November 2007 and an estimated completion date of 29 September 2010. 
II. Project Context 
Ethiopia began its economic liberalization process in the 1990s with a vision of reversing the 
socio-economic crisis of the 1970s and 1980s and rapidly transforming its economy into a 
market-oriented economy. Following the collapse of the military regime and its re-orientation 
from the command economic system, the country has taken a major policy shift towards a 
market-oriented economy. With a view to integrating its economy into the global economy by 
further committing to reform, Ethiopia has applied for WTO membership and its accession is 
underway. The U.S. has been supporting the efforts of Ethiopia to reform its economy and its 
quest for WTO Accession. To that end, USAID launched the Doha WTO Accession Project in 
2005 (the Doha Project) to help the country in its accession process. The current project is the 
continuation of the Doha WTO Accession Project. 
The ultimate goal of USAID economic growth activity in Ethiopia is increased economic growth 
and development with the private sector as the engine of that growth. The Project is designed to 
continue the pursuit of Ethiopia’s WTO accession but also by fostering broad business 
environment reforms in the general commercial legal and regulatory context that will increase 
growth and thereby enhance the benefits of accession. 
6
III. Project Assessment Objectives and Methodology 
1. Evaluation Objective 
The overall aims of this Project evaluation is to assess the progress made toward the objectives 
of the WTO Accession Plus Project as outlined in the Task Order and to provide 
recommendations for increasing impact through reprioritizing Project activities, approaches, and 
foci. Within the ambit of the above overall objective, the specific objectives of this evaluation 
are: 
1. Assessing the Project’s effectiveness; 
2. Determining cumulative actual and potential impact; 
3. Evaluating BAH’s strategic approach and their management of Project activities; 
4. Defining the gains that USAID/Ethiopia and its partners can derive from adjusting the 
current program; 
5. Appraising how sustainable Project results and activities are to date; and 
6. Examining the Project’s accuracy and relevance in light of current Ethiopian policies and 
political commitment to WTO accession. 
2. Specific Evaluation Questions to Be Answered 
A. Project Effectiveness: 
a) How effective has the Project been in meeting its target of planned activities? 
b) What impacts have been produced that are attributable to the Project? 
c) (1) How much of the GOE’s current legal and institutional reforms can be attributed to 
the Project, and (2) what is the potential for the Project to promote further reform? 
d) (1) How effective is the Project in its responsiveness to GOE needs for technical support 
and (2) does the GOE view the Project as a useful support? 
e) To what extent has the Project strengthened the private sector’s understanding and 
involvement in both the WTO accession and other efforts at commercial legal reforms – 
what results were achieved? 
f) Did the Project influence significant changes in GOE policy and administration processes 
that will contribute to its WTO accession or other trade-related commercial legal and 
constitutional reform? 
g) Overall, what are the success stories of the Project? 
h) What have been the major obstacles to Project success and how well did the Project 
contractor respond to such challenges? 
7
B. Project Management, Coordination, & Partnership: 
a) What are the demonstrated value and effectiveness of current GOE organizational 
structures for the two foci of the project and have there been any gains in efficiency and 
results in changing the organizational placement structure? Is it clear who has 
responsibility for what, are there duplications? For inspections, is the Customs function 
efficient or does its inefficiency add to the final cost of goods’ entry, and is there a clear 
distinction between institutions responsible for regulation and others responsible for 
enforcing them? 
b) Did Project initiatives with private sector NGOs increase their effectiveness and 
accomplishments? 
c) What further linkages or initiatives can the Project exploit to further WTO accession and 
goals for commercial, legal, and institutional reform? 
d) How can the WTO Accession Plus project be better integrated into an overall 
USAID/Ethiopia program? 
C. Project Relevance: 
a) Are the selected Project activities appropriate to reach the desired results? 
b) What activities should be included and which activities are irrelevant or of no more 
importance to Project objectives? 
c) Assess the current Project plan and establish priorities for the remaining period of the 
Project. 
D. Project Sustainability: 
a) Assess the sustainability of program results achieved so far and determine necessary 
elements that the Project should consider to sustain results. 
b) To what extent do Project activities successfully create sustainable capacity among 
counterpart federal agencies and the private sector? 
c) To what extent do Project activities support the private sector business community to 
advocate for needed reforms to improve the business environment and take advantage of 
Ethiopia’s WTO accession once achieved? 
3. Methodology 
The team has examined a large number of documents related to the activities of the Project. It 
has also conducted extensive interviews with the pertinent USAID staff, Project Staff, the MOTI, 
and other government institutions, the private sector, partners and donors. 
8
IV. Assessment of Individual Components of the Project 
1. Program Effectiveness 
(a) The effectiveness of the Project in meeting its target of planned activities 
The specific activities undertaken by the Project include: (1) assistance to the ongoing WTO 
accession; (2) trade-related commercial & regulatory reforms: (3) expanded regional trade; and 
(4) coordination & collaboration with other aid donors, institutions, and agencies. 
The Project has helped the MOTI in different ways in the ongoing WTO accession process. 
Project staff members have provided technical assistance in the course of the preparation of the 
Memorandum of Foreign Trade Regime (MFTR), the answers to questions raised by members of 
the WTO Accession working party, as well as other technical documents for accession. They 
have also prepared legal memos on different areas of law and identified gaps and limitations of 
various laws and regulations for conformity with GATT/WTO rules for global trade followed by 
suggestions for reform. These activities may also help in inducing broader commercial and 
regulatory reforms. However, the role of the Project in enhancing regional trade has been very 
limited. Similarly, there have been some attempts to link up efforts with some donors and other 
institutions, one example being the arbitration moot court the Project conducted with the 
Arbitration & Conciliation Centre and the Faculty of Law of Addis Ababa University. 
Nonetheless such efforts remain largely at the level of preliminary discussion and they have not 
in most cases translated into concrete Project activities. 
The Project thus has been only moderately effective in meeting planned activities in WTO 
accession and commercial/regulatory reform whilst it is even less effective in regional trade and 
coordination and collaboration with other donors and institutions. It should be noted, however, 
that some of the activities involve policy issues that go beyond the control of the Project. 
Whatever the Project does is to help the GOE and influence policy reforms, but ultimately, it is 
up to the GOE to make the decision. 
In general, the Project has done relatively well in the area of facilitating WTO accession but it 
has not done on all the activities it was supposed to undertake. In some cases where it did 
undertake activities, its effectiveness has been limited partly because of reasons beyond the 
control of the Project. 
(b) Impacts attributable to the Project 
The Project has helped the MOTI in the preparation of the MFTR that had to be submitted to the 
WTO Secretariat. The answers to the questions raised by WTO Working Party members and 
other technical documents such as the ACC documents, which have to be submitted to the 
Secretariat as part of the accession process. It has also prepared a number of legal memos 
addressing specific issues relevant to the WTO accession. MOTI officials recognize this as 
important assistance from the Project. The impact of these activities is that the MFTR and 
answers to the questions and other technical documents submitted to the WTO Secretariat have 
advanced the process of accession. 
9
That said it is difficult to pinpoint and measure the impact attributable to the Project because of 
the nature of support it provides. As noted, the ultimate decision to make progress in the WTO 
accession rests with the GOE. 
While the Project has also organized trainings with a view to building the capacity of the MOTI, 
both Project and MOTI staff recognize that the role of the Project in capacity building has been 
rather limited. Similarly, the business community feels that the outreach program that the Project 
has undertaken has been limited. Capacity building and outreach programs are areas where the 
Project could bring about an important impact in viewpoints regarding Ethiopia’s membership in 
the WTO but this has been limited for various reasons. 
(c) Current legal and institutional reforms attributed to the Project and the potential for 
the Project to promote further reform 
The various legal memos and studies prepared by the Project could contribute to GOE reform 
initiatives. For example, the memo on Legal Services in Ethiopia could be taken as one input in 
the on-going work of revising regulations in this area. The other legal memos may also be 
helping to reform efforts of the GOE by showing gaps and weaknesses in the regulatory 
framework. Again, it is difficult to measure the legal and institutional reforms undertaken by the 
GOE as attributable to the Project. The different activities might have influenced reform agendas 
but the ultimate decision for reform rests with the GOE making it difficult to measure the 
attribution to the Project. 
In relation to the potential role of the Project for further reform in its remaining lifetime, there 
appears to be both prospects and challenges. In terms of prospects, now that the structural reform 
process at the MOTI has more or less been completed and a new Directorate for Trade Relations 
& Negotiations has been established with a very enthusiastic team, it is expected that more 
effective activities could be undertaken in consultation with the MOTI. On the other hand, there 
is also a feeling that the GOE may pay more attention to the upcoming election and less to WTO 
accession, which may have a negative impact on the potential contribution of the Project for 
further reform. 
(d) The effectiveness of the Project in its responsiveness to GOE needs for technical support 
and the GOE view of the Project 
The MOTI clearly has the view that the Project is useful and feels it has been generally 
responsive to the needs of the GOE. However, Project staff think that the MOTI has not been 
able to make the best out of the Project because of the restructuring it has undertaken over the 
last two years. They also feel that at times the MOTI has been less responsive to Project 
activities and they do not receive many requests from the MOTI for specific activities. On the 
other hand, the MOTI generally views the Project as a valuable support, especially in preparing 
legal memos and providing other technical assistance. They also feel that the Project has not 
always been responsive to their demands and needs. For example, they stated that the request by 
the MOTI for high level training on trade negotiations has not been met by the Project. 
The MOTI also has concerns about the way the Project operates its activities and has called for 
more transparency on the amount of budget allocated to the Project by USAID and the manner of 
10
use of the budget. They also wish to have more consultations and engagement in the activities 
undertaken by the Project such as consultant recruitment. Because of this, the MOTI believes 
that the Memorandum of Understanding between it and USAID needs to be revised in order to 
address their concerns. 
(e) The extent to which the Project strengthened the private sector’s understanding of and 
involvement in the WTO accession and other efforts at commercial legal reform and the 
results achieved 
The Project has organized several workshops on WTO issues where the private sector was 
invited and participated. However the role of the Project in strengthening the private sector’s 
understanding and involvement in WTO accession and commercial law reforms has been 
limited. The private sector, particularly the business community, feels that their involvement in 
Project activities has largely been limited to participation in workshops organized by the Project 
and there has been little consultation with them as to their priorities and needs before hand. In 
particular, there has not been a close collaboration with the Ethiopian or Addis Chamber of 
Commerce. The role of the Project in strengthening the capacity of the private sector in 
commercial legal reform has also been considered limited. For example, the Project has had no 
visible role in the on-going revision of the Commercial Code under the auspices of the Addis 
Chamber of Commerce. 
(f) The Project’s influence to bring significant changes in the GOE policy process and 
administration that will contribute to WTO accession or other trade-related commercial 
legal and constitutional reform 
As noted, the Project has hosted several workshops and prepared several memos on different 
areas identifying needed reform with a view to facilitate trade and WTO accession. These 
activities may influence the GOE to undertake trade-related reforms as it moves toward 
accession to the WTO. Again, it is difficult to measure in precise term the role of the Project in 
influencing changes in GOE policies. 
(g) The success stories of the Project 
The Project assisted the MOTI in preparing the MFTR, replies to Working Party questions, and 
various other accession documents. It has also prepared a number of legal memos identifying 
gaps and limitations in various laws affecting trade. It has collaborated with the Ethiopian 
Arbitration and Conciliation Centre and the Law Faculty of Addis Ababa University to conduct a 
moot court competition on arbitration. The Project has also hosted a legislative drafting course 
for lawyers and staff of the MOTI and other ministries with in order to strengthening their 
capacity in legislative drafting and analysis. These could be taken as success stories of the 
Project. 
(h) The major obstacles to Project success and how well did the Project contractor (Booz, 
Allen, Hamilton) respond to such challenges 
One major obstacle has been the slow pace of the accession process. For different reasons 
beyond the control of the Project, the accession process has not been going at the pace supposed. 
11
This has posed an important challenge to the Project by reducing attention to WTO accession. 
The institutional restructuring at the MOTI has also been another challenge for the Project as it 
took longer than expected with less attention given to work related to WTO accession. In the 
course of the restructuring, it was difficult to contact counterparts and discuss with them Project 
activities. While the capacity of the Project to expedite the process of accession may be limited, 
the restructuring of the MOTI has largely been completed, giving optimism for better 
coordination and execution of Project activities. 
2. Project Management, Coordination and Partnerships 
(a) The demonstrated value and effectiveness of current GOE organizational structures for 
the two foci of the Project and any gains in efficiency and results in changing the 
organizational placement/structure 
The Project is currently housed within the premises of the MOTI. It is believed that the 
placement of the Project within the MOTI is beneficial to an efficient and smooth working 
relationship with staff of the Ministry. The fact that the Project is located within the MOTI 
helped the Project staff to develop a close working relationship with staff of the MOTI 
Directorate. As the Project staff is able to contact the MOTI staff directly at any time, it increases 
the efficiency by which things get done. On the other hand, the partnership that the Project has 
with the private sector is loose and this loose partnership has been attributed to the Project being 
within the Ministry. The Project’s placement within the MOTI tends to give a wrong signal that 
some perceive it is helping the GOE but not the private sector and business community. 
The team believes that the placement of the Project within the MOTI has helped it to accomplish 
its basic objectives. Moreover, the Project also serves as a bridge between the private sector and 
the GOE. The Project needs to improve its relationship with the private sector and can actually 
take advantage of its being housed in the MOTI to communicate concerns of the private sector 
and business community to the GOE. 
(b) Project partnership initiatives with private sector NGOs to increase their effectiveness 
and accomplishments
As indicated in the Task Order, the Project is expected to work very closely with the public as 
well as private sector in Ethiopia for the purpose of building capacity. The private sector is most 
effectively represented by the Ethiopian and Addis Ababa Chambers of Commerce. The Project 
should partner with the chambers in order to identify the priorities and concerns of the private 
sector business community whilst conducting workshops and trainings. It is believed that 
successful WTO accession should involve awareness rising on WTO accession issues. Many 
business people hold unreasonable fears and expectations about the impact of accession on their 
firms and commercial activities. These business people would like to know what WTO accession 
means for them and their businesses. In this regard, the Project has to identify areas of concern 
and poor understanding and devise appropriate outreach and public education campaigns to 
improve awareness among the business community of the commercial and economic benefits to 
Ethiopia by its accession to the WTO. As the business community is the targeted beneficiary of 
this kind of outreach, identification of areas of concern about WTO issues needs to be done in 
consultation with the chambers of commerce. 
12
The Project’s accomplishments in this regard are limited. The Project tried to maintain a working 
relationship with the Ethiopian and Addis Ababa Chambers of Commerce by inviting them to 
meetings and workshops related to WTO accession. The Project staff also attends meetings and 
workshops organized by the chambers. So far the Project has not partnered with either of them 
on a specific project. Even in the outreach services organized by the Project, the chambers were 
not consulted on areas of concern for the business community. They were simply invited to 
attend the meetings. 
Partnership with the chambers is one area the Project needs to improve upon. There are various 
possible areas of cooperation with the private sector including expanding outreach to the 
business community through the chambers. Involving the chamber in identifying areas of 
concern for the private sector prior to preparing workshops and meetings will have meaningful 
impact rather than simply inviting chamber staff to attend the meetings. The chambers are 
represented in the technical committee for the WTO accession and also take part in the 
public/private partnership forum, in which they contribute towards policy formation of the GOE, 
including policies related to the WTO. Building capacity of staff of the chambers will play a 
crucial role in enhancing participation of the private sector and business community and in 
making sure that their concerns are heard by policy makers of the country. Hence, the project can 
partner with the chambers in capacity building activities. Moreover, the Private Sector 
Development Hub within the Addis Ababa Chamber undertakes research on issues of concern 
for the private sector, including WTO accession and membership. This is one area in which the 
Project can and should partner with the Chambers. 
(c) Further linkages or initiatives the Project exploit to further WTO accession and the 
goals for commercial, legal, and institutional reform
There are a wide range of stakeholders and counterparts pursuing the reforms targeted by the 
Project. Apart from the MOTI, other ministries like MOFED, MOARD, and other GOE agencies 
as well as numerous donors including the European Commission, GTZ, and other U.S. agencies 
area involved in promoting reform. The tasks which are envisioned to be undertaken by the 
Project require significant interaction and collaboration with these other organizations. Hence, 
the Project is expected to work in close cooperation and collaboration with these other agencies. 
In this regard, the Project has established a working relationship with the EU’s Trade Capacity 
Building Unit in which legal experts from the WTO Accession Plus Project facilitated training 
for the private sector in different parts of the country. At other times the collaborative works with 
other government and donor agencies but this should be more than just invitations to attend 
meetings. All donor agencies that have working relationships with the Project have either been 
invited to workshops organized by the Project or invited Project staff to attend their workshops. 
However, at times, this collaboration seems to be with agencies which do not work on WTO 
accession issues. 
 So, one area of improvement for the future work of the Project is coordination and collaboration 
with other donor agencies and government offices. As mandated in the Task Order, one form of 
collaborative work could be provision of direct support to other organizations and their projects. 
13
Different GOE agencies like MOARD have identified gaps where they need intervention from 
the Project. This is one area for collaborative work by the Project. 
(d) How can the WTO Accession Plus Project be better integrated into an overall 
USAID/Ethiopia program?
The Project has one very distinct focus: Ethiopia’s WTO accession and that should remain its 
central focus. That implies a number of forms of technical assistance and capacity building 
activities. It would not necessarily support that focus by immersing it into other USAID/Ethiopia 
projects. However, since there are several donors and projects dealing with aspects of 
commercial law revision, that part of the Project’s focus could usefully be integrated into an 
overall commercial law reform project. 
3. Project Relevance 
(a) The appropriateness of the selected Project activities to reach the desired results 
 Desired results are described in the Project’s Terms of Reference and BAH’s proposal. Overall, 
the ultimate goal of USAID economic activity in Ethiopia is increased economic growth and 
development with the private sector as the engine of that growth. The Project was designed to 
continue and facilitate Ethiopia’s accession to the WTO while also promoting broad business 
environment reforms that will increase growth and economic development and enhance the 
benefits from Ethiopia’s WTO membership. 
The activities selected to achieve these goals include: 
! Examination and legal review of GOE laws and regulations relevant to both WTO 
accession and an expanded commercial legal framework for establishing priorities for a 
legal reform agenda and identifying gaps in GOE legislation relevant to Ethiopia’s 
membership in the WTO; 
! Ad-hoc technical assistance, legislative drafting, and building of a local legislative 
drafting capacity; 
! Development of policy formation and decision support capacity for the GOE Parliament, 
the MOTI, and the private sector; 
! General training and outreach with respect to WTO accession and the GATT/WTO 
framework of rules for global trade to facilitate Ethiopia’s implementation of its 
GATT/WTO obligations and commitments; 
! Improved coordination and collaboration among ministries and the private sector, other 
donors, and U.S. agencies; and 
! Short-term consultant services. 
There are a number of donors and agencies working on commercial law reform. The MOTI 
prefers that the Project focus on facilitating and supporting WTO accession. The Project has a 
limited budget and staff. Its Priorities should be: facilitating WTO accession with activities 
14
oriented toward preparation of ACC documents; legal review of the MOTI and other GOE 
documents relevant to the WTO; technical assistance for legislative drafting; training, capacity 
building, and outreach to all relevant parties regarding the GATT/WTO framework of rules for 
global trade, especially obligations and commitments likely to be undertaken by Ethiopia as part 
of its accession; and outreach to the GOE, NGOs, and the private sector on benefits of Ethiopia’s 
membership to the WTO. 
The evaluation team believes that the Project’s role in areas of commercial law reform should be 
limited. It is believed that Project’s involvement in this area should be limited to aspects of 
Ethiopia’ commercial law regime that have direct relevance to or consequences for its 
membership in the WTO. 
(b) Activities to be included and activities that are irrelevant or of no more importance to 
Project objectives
The scope of Project activities is ultimately determined by its budget and staffing. Clearly the 
primary activities are those related to facilitating and supporting Ethiopia’s accession to the 
WTO. Activities that support this primary concern should include: capacity building for staff of 
the MOTI and other relevant ministries with respect to trade negotiation; implementation of the 
GOE’s obligations and commitments once it achieves accession; accession/implementation 
policy formation and decision support; collaboration/cooperation with other donors providing 
WTO-related technical assistance; and outreach to the public, NGOs, and, in particular, the 
private sector business community regarding the requirements and benefits of WTO 
membership. Activities that do not relate directly to Ethiopia’s accession needs or to commercial 
laws and regulations that do not support the accession process or implement the GOE’s 
obligations and commitments under the WTO framework should not be the priority of the 
Project. 
The Project staff said they were confronted with budget constraints that inhibited them in 
providing capacity building for trade negotiation. Wide expansion of the non-WTO related 
commercial law reform is as significant budgetary expenditure that limits the Project’s attention 
to trade negotiating capacity. 
(c) Assessment of the current Project plan and priorities for the remaining period of the 
Project
The Project plan for major activities/targets for the annual reporting period 01 October 2009 
through 30 September 2010 includes: 
! conduct 20 trainings – both local and regional; 
! produce 10-20 legal memos/analyses; 
! produce & publish articles on the benefits of regional trade integration (IGAD, 
COMESA); 
! publish 3-5 articles to increase awareness and knowledge about WTO accession; 
! collaborate with the MOTI Directorate for Trade & WTO to finalize initial offers in 
goods and services to submit to the Working Party; 
15
! assist with efforts to conduct the second Working Party meeting; 
! work with the MOTI to submit remaining required ACCs; 
! work with the EC to launch collaborative Ethiopian Trade Journal; 
! work with the DAG & MOTI to influence formation of private sector development and 
trade capacity building as part of PASDEP II; 
! assist the MOTI in beginning bilateral negotiations as part of the WTO accession process; 
! work with the GOE and donors to establish SPS and TBT Enquiry Points; 
! collaborate with donors on assistance regarding the Customs Valuation modernization 
program; 
! continue technical assistance to the GOE to influence commercial legal reform; and 
! begin discussions on regional moot court program. 
The Project’s priorities should include: (a) assistance for final realization of Ethiopia’s WTO 
accession, including high level and skill-oriented training on trade negotiations; (b) drafting 
and/or review/commentary on documents relating to WTO accession (e.g., ACCs, offers, 
questions, and other formal texts); (c) outreach to the private sector and other stakeholders 
regarding benefits/concerns of Ethiopia’s WTO membership and its implementation of its 
obligations and commitments thereunder; and (d) conferences/workshops on WTO-related 
themes. 
4. Program Sustainability 
(a) Assessment of the sustainability of Project results achieved so far and determination of 
the necessary elements that the Project should consider to sustain results
One-time only activities that cannot be continued in the future are unlikely to achieve 
sustainability. The Project will, in large part, be considered sustainable if and when Ethiopia 
finally accedes to the WTO and, then, in the longer term by the success for its people if it 
realizes the economic and trade benefits from its membership over time. Action by the GOE to 
support meaningful and successful membership in the WTO will promote sustainability. Reforms 
in the commercial legal system directly relevant to the GOE’s membership in the WTO, and 
revisions in the Ethiopian legal, regulatory, and policy formation systems, will promote 
sustainability. Above all, capacity building is the key element for sustainability of the Project and 
should be one of the areas of priority for the remaining life of the project and beyond. 
(b) The extent to which the program activities have successfully created sustainable 
capacity among counterpart federal agencies and the private sector 
The Project has sustainably improved capacity among Ethiopian federal agencies by the 
extensive training it has offered to government staff, who now have become genuinely 
supportive of Ethiopia’s accession. These senior and mid-level government managers are 
willing and effective in ensuring that the GOE implements its obligations and commitments 
under the WTO framework. They should have the capacity to engage successfully in 
international trade negotiations relating to the WTO, so one may say that the activities of the 
Project have successfully created sustainable capacity. To a more limited extent, the Project has 
16
achieved the same aim with selected business leaders and other private sector representatives 
who have also participated in Project conferences and training events. Both the MOTI and the 
private sector think that a more focused endeavor around capacity building would help to ensure 
sustainability. 
(c) To what extent do Project activities support the private sector business community to 
advocate for needed reforms to improve the business environment and take advantage of 
Ethiopia’s WTO accession once achieved? 
Although the Project has undertaken certain business-focused activities such as conferences, 
usually in collaboration with other donors or NGOs such as chambers of commerce, the Project 
has not made significant efforts to reach out to the private sector. Nearly all stakeholders 
interviewed held this view. 
 
V. Lessons Learned and Recommendations 
The MOTI, partners and stakeholders unanimously recognize the importance of the Project in 
facilitating the country’s accession to the WTO and encouraging broader commercial regulatory 
reform. 
The Project has played a very important role particularly in the accession process. In particular it 
has drafted legal memos in a number of areas showing gaps in regulations and suggesting 
reform. It has also assisted the MOTI in the preparation of the large number of questions 
received from WTO members in two rounds as well as in the preparation of the other technical 
documents necessary for the WTO accession. The Project has also organized different 
workshops targeting specific issues of particular importance for the country and to a limited 
extent partnered with other stakeholders to encourage broader commercial regulatory reform. 
Ethiopia has entered a critical stage in the accession negotiation and now that most of the 
technical documents required for accession have been submitted with the support of the Project, 
the next step is the bilateral and the multilateral negotiations, which is a complex process. The 
role of the business community in the accession process has so far been limited. The Addis and 
Ethiopia Chamber of Commerce are members of the Technical Committee for WTO accession 
but they are not represented in the Steering Committee, which makes final decisions regarding 
the accession. They are now calling to be represented in the Steering Committee so that they will 
be able to air the concerns and positions of the private sector in the accession negotiations. Some 
members of the business community also feel that they should even be part of the negotiating 
team. Nonetheless, it is also clear that the business community in general lacks capacity in WTO 
related issues and it has not been able to articulate the position and priorities of the business 
community in the different areas with a view to influence government’s negotiation agenda. The 
business community and other stakeholders also view the Project as an important partner and 
although they wish to see more collaboration and assistance targeting the needs and priorities of 
the private sector, they all recognize the critical role this project may potentially play by assisting 
further reforms and building the capacity of the private sector which is weak relative to 
government. 
17
Even if there is a general understanding that the accession has been slow and it may continue to 
be slow because of the likely focus on the upcoming elections, there are also some hopes that the 
GOE will take the accession more seriously. Apart from the open statement of the Prime 
Minister to finalize the accession in a few years time, the MOTI has reorganized the department 
in charge of WTO accession as the Trade Relations and Negotiations Directorate with a 
committed team to expedite the process. The Directorate is in the process of strengthening itself 
by employing new staff, and those new staff would benefit from further training under the 
Project. The MOTI has high expectations for the Project. 
It is the view of the Team that the Project should not simply close at this critical juncture in the 
accession process and it should continue with a new focus and approach. The technical 
assistance and capacity needs of Ethiopia remain a significant concern of the GOE (see Annex 
B) and should be an important focus of the future activities of the Project if renewed. 
Recommendations 
1. Continuation of the Project with a shift in focus 
Given the important role the Project has played so far, the critical juncture the accession process 
has entered and the important potential role of the Project in the process as well as the call for the 
continuation of the Project by the MOTI, the business community and other stakeholders and 
partners, it is recommended that the Project be extended for two more years. 
Nonetheless, the focus of the Project currently is too broad and in practice the Project has 
focused more on WTO accession issues than the other areas within its scope such as initiating 
broader commercial reform and encouraging regional integration. It is recommended that the 
Project should engage in more focused activities so that its impact would be more pronounced 
and more resources would be diverted to activities that would bring about important impacts. 
Accordingly, the Project should maintain its focus on WTO accession, but should focus on 
commercial law revision only to the extent such laws relate to or impact specifically on 
Ethiopia’s obligations and commitments under the WTO. Other donors are currently working on 
regional integration and the Project’s intervention in the area would be a duplication of what is 
being done. 
2. More attention to the private sector 
The evaluation of the Project has shown that the latter’s interaction with the private sector has 
been limited. Even if there were a number of outreach programs involving the private sector, the 
Project has not partnered with the business community in specific projects. More focus on the 
private sector is necessitated by two important considerations. First, members of the business 
community are the ones who would directly be affected by the consequences of the accession 
and making sure that they understand such consequences is absolutely important. Second, the 
business community lacks the capacity to pinpoint its positions and priorities and to influence 
government negotiation agenda. 
18
It is recommended the Project should establish a mechanism to engage with the private sector, 
including the National and Addis Ababa Chambers of Commerce and partner with them in 
concrete projects based on their priorities. 
3. Capacity building for MOTI and other line ministries 
The MOTI recognizes the important role played by the Project in the accession process but calls 
for more activities targeting capacity building. There are two areas in which the Project could 
play important roles in terms of capacity building. First, the MOTI is in the process of organizing 
the core negotiating team that would spearhead the accession negotiations. Building the capacity 
of the core team of negotiators through a high level training on negotiation is a critical 
intervention with a huge benefit to the accession process. Second, the newly established 
Directorate for Trade Relations and Negotiations is trying to strengthen its capacity by providing 
trainings to its existing staff while employing additional staff. The Project could play a very 
important role in this by supporting trainings. 
4. More coordination and collaboration with other donors 
The Project should strive for a more synergetic sharing of assistance activities with other donors 
and agencies directly or indirectly working on WTO accession. Some donors are now working 
on Ethiopia’s WTO accession. These include, the European Union, World Bank, USAID AGOA 
Plus Project, World Trade Organization, GTZ, Japanese Embassy, JICA, Finland Embassy, and 
UNCTAD. A more synergetic collaboration with such projects would enhance the impact of 
Project activities and avoid duplication of activities. 
5. Focus on contentious issues in the accession process 
It is expected that the accession process would soon enter the more complex stage of bilateral 
and multilateral negotiations and it is likely that some issues would be more contentious than 
others. The different questions that came from the WTO members show that some areas could 
attract more attention of the WTO members than others. Some likely key issues in the 
negotiation include: transparency, telecom, financial sector, intellectual property, customs, 
quality and standards, and state trading enterprises. A focus on these and other areas likely to be 
contentious would help in expediting the accession process. 
6. A user-friendly outline of Ethiopia’s obligations and commitments under the WTO 
The precise number and nature of Ethiopia’s obligations and commitments under the different 
agreements of the WTO are not known to the MOTI, the private sector and other stakeholders. 
Outlining such obligations and commitments would enable understating of such obligations and 
commitments beforehand, while also clearing confusions and expediting the accession process. 
Such an outline of the country’s obligations and commitments would also facilitate the smooth 
implementation of the obligations and commitments. It is recommended that the Project take this 
as one important agenda and develop a user-friendly outline of Ethiopia’s obligations and 
commitments under the WTO. 
7. A realistic budget 
19
20
Project staff, the MOTI and other stakeholders feel that the Project needs to have a budget 
commensurate with the different activities it is supposed to undertake and some activities have 
not been undertaken because of budget limitation. While the Team does not suggest any specific 
figure, it nevertheless recommends that the budget to be allocated for the project should be 
realistic in view of its mandated tasks. 
The MOTI has raised concerns regarding transparency with regard to the Project budget. While 
we see the importance of sharing basic budget aspects for the project with the MOTI, the team 
does not believe the Project or USAID/Ethiopia should be required to share detailed budget 
information or salaries, overhead and other costs with the MOTI. The MOTI should, however, 
be provided the opportunity to comment on the proposed overall annual budget and major budget 
line items, and have the opportunity to make specific budget suggestions for the year. 
Furthermore, if ad hoc or other additions/changes are made to the work plan, the MOTI should 
be notified and provided the opportunity to comment thereon. Additionally, the MOTI may be 
consulted on certain personnel matters, but all final decisions of the budget and Project personnel 
must rest with USAID/Ethiopia and the Project. 
8. Project to remain housed at the MOTI 
The MOTI is the government organ in charge of WTO accession and trade issues in general. It is 
a government institution that handles all trade relations and negotiation issues. It is absolutely 
important that the Project works very closely with the MOTI staff and in particular the Trade 
Relations and Negotiation Directorate and to facilitate this close interaction the Project need to 
remain in the premises of the MOTI. This would also be important in terms of cost for offices 
and facilities. 
9. Project’s Chief of Party familiarity with WTO-related issues 
The activities of the Project involve technical issues that require a deep understanding of the 
GATT/WTO framework of rules for global trade and WTO issues in addition to the managerial 
skills to lead the Project. The Project Chief of Party (COP) should have significant knowledge 
and understanding of international trade issues, including specifically the obligations of members 
of the WTO with respect to WTO obligations and commitments. Additionally, the Project COP 
should also have basic experience and capacity with regard to Project management, personnel 
matters, and public outreach. The COP need not be a lawyer since WTO rules and agreement￾specific issues are more likely to be conferred on short-term technical assistants. 
Annex A: List of Persons Contacted 
1. Ato Addis Alemayehu AGOA +, VEGA project 
2. Ato Teferi Asfaw, Addis Ababa Chamber of Commerce and Sectoral Associations 
3. Ato Teshome Beyene, Addis Ababa Chamber of Commerce and Sectoral 
Associations 
4. Ato Gashaw Debebe, Ethiopian Chamber of Commerce and Sectoral Association 
5. Ato Fikre Markos, Deputy Director, Animal and Plant Health Regulatory Directorate, 
MOARD 
6. Ato Merkneh Yigezu, Ministry of Justice 
7. Lazarre Potier, COP, USAID WTO Accession Plus Project 
8. Kary I Hintz-Tate, US Embassy in Addis Ababa 
9. Fasil Yilma, US Embassy in Addis Ababa 
10. Ato Geremew Ayalew, MOTI, Trade Relation and Negotiation Directorate 
11. Ato Lisanework, MOTI, Trade relation and Negotiation Directorate 
12. Ato Demilew, MOTI, Trade relation and Negotiation Directorate 
13. Ato Wondwesson Shewarega, USAID WTO Accession Plus Project staff 
14. Ms. Malisa, USAID WTO Accession Plus Project staff 
15. Dr. Claudius Preville, Trade Capacity Building Unit (EU Project) 
16. Ato Asfaw Alemayehu, The American Chamber of Commerce in Ethiopia 
17. Ato Hailemicael Liqu, Addis Ababa Chamber of Commerce, Private Sector 
Development Hub 
18. Mr John Clifford, Addis Ababa Chamber of Commerce Private Sector Development 
Hub 
19. Mr. Andrea Lacquaniti, Italian Cooperation 
20. Ato Seifu Belay, GTZ 
21. Ato Mandfrot Belai, ABA-ROLI, Addis Office 
22. Mrs. Haregewoin Ashenafi, Ethiopian Arbitration and Conciliation Centre 
23. Ato Wondwosen Belete, Ethiopian Intellectual Property Office 
24. Randy Chester, USAID-Addis 
25. Mrs. Semunesh Demetros, USAID-Addis 
26. John Edgar, USAID-Addis 
Annex B: Prioritized Needs of the MOTI from the Project 
Technical Assistance and Capacity Building needs of Ethiopia from USIAD for WTO 
Accession and beyond: 
! Legal reviews of Ethiopian laws to assess their consistency with the WTO rules,
! Preparation of tariff offer in goods, ! Preparation of specific commitments in services,
! Preparation of commitments in TRIPS and other WTO rules,
! Establishment of enquiry points for services, TBT and SPS 
! Establishment of collusion of service providers, 
! Development of trade database,
! Purchase of recent trade related books, subscription of online materials and 
information,
! Experience sharing with recently acceding countries,
! Participation in other countries Working Party meetings,
! Review and update the research works undertaken,
! Undertake new research works, 
! Preparation of answers, negotiation briefs etc.
! Advanced training of core negotiators and technical committee members,
! Awareness creation programs,
! Attachment programs,
! Engagement with the business community,
! Preparation of Ethiopian negotiation update news letter etc,
! Implementation. 
January 5/2010