Projects

Our activities in Ethiopia are part of the Global Project Sustainable Economic Transformation and Sustainable Finance.

Ethiopia is undergoing a major shift toward a more liberal, market-oriented economy. The Homegrown Economic Reform Agenda 2.0 (HGER 2.0), published in March 2024, aims to promote private-sector-led growth and macroeconomic stability, including attracting foreign investment and deeper integration into the global economy. Ethiopia has already adopted the internationally recognized IFRS accounting standards. However, sustainability disclosure requirements – such as those under IFRS S1 and S2 – have not yet been planned or implemented.

The absence of consistent sustainability disclosures limits transparency for investors seeking to make sustainable investments in Ethiopian companies, thereby constraining the country’s ability to attract capital flows. The Accounting and Auditing Board of Ethiopia (AABE), which has the legal authority to introduce and enforce disclosure requirements, plays a key role in this process. AABE has decided to adopt international sustainability reporting standards and has asked FSD Africa and GIZ for support in doing so.

Development of a national roadmap for sustainability disclosures to promote transparency and accountability in financial and non-financial firms (Finalised: July 2026).

• Formation and advisory of a national steering committee of national regulators and policymakers to define a phased adoption pathway commensurate with national priorities and market readiness.
• Assessment of the market readiness to implement sustainability disclosure standards through analysis of existing regulatory frameworks, current reporting practices and identification of capacity gaps.
• Workshops to raise awareness on sustainability-related disclosures as well as capacitate regulators and policymakers in the development process of a sustainability disclosure roadmap.
• Support the national steering committee in the development of a national roadmap for the phased adoption of sustainability disclosure requirements incorporating regulatory considerations, data availability, market readiness and national priorities.
• Support in the consultation process of the national adoption roadmap with relevant stakeholders.

Development of a high-level capacity development strategy with recommendations regarding training programs for preparers, auditors, and regulators.

• Identification of training and technical support needs for preparers, auditors and regulators.
• Analysis of institutional, technical and human capacity gaps within the Ethiopian accounting profession.
• Design of a capacity-building strategy framework with roles, responsibilities, sequencing, monitoring indicators and available resources.

• Ethiopia’s IFRS Sustainability Disclosure Standards Adoption Roadmap
• National capacity-building plan for IFRS Sustainability Disclosure Standards