Ethiopia: new Joint Financing Arrangement
The Ethiopian Federal Ministry of Health and Development Partners have signed a Joint Financing Arrangement (JFA), on 15 July 2015 to commit resources to a pooled funding mechanism for health. The signing ceremony took place at the side-lines of the Third Financing for Development (FFD3) conference in Addis Ababa.
The third in Ethiopia since 2009, this JFA will support the implementation of the Health Sector Transformation Plan (HSTP), based on the ‘three ones’ principles of aid effectiveness: one plan, one budget, and one monitoring framework. Key agreements between all the parties include alignment and harmonization of Development Partners contribution to the HSTP and implementation of the IHP+ Compact. While this is not a binding treaty, the national Compact emphasizes the mutual benefits and bilateral agreements made between the Ethiopian Government and its development partners.
Development partners who signed the JFA include IrishAid, Embassy of Netherlands, WHO, UNFPA, UNICEF, World Bank, DfID, EU, Italian Cooperation, and the Spanish Agency for Development Cooperation. All partners pledged their continued support to the Sustainable Development Goals Performance Fund (SDG PF) through the newly signed JFA. The SDG PF replaces the Millennium Development Goals Performance Fund and will remain one of the two government-preferred modalities to channel Development Partner contributions to the health sector, together with health sector budget support.
During the signing ceremony, Dr Kesete Ademasu,Minister of Health of Ethiopia, made the following remarks. “ What we have done for the health sector in Ethiopia is to save lives and build systems, based on the six building blocks of the health system. Ethiopia is well known for stretching the dollar; we are an example of doing much with little money. As my predecessor and mentor, Dr Tedros used to say, it is not the amount but the quality of aid that makes a difference. In Ethiopia we picked some low hanging fruits, but now we have to find innovative ways to reach everyone. This is why in the new HSTP we emphasize two elements: quality and equity. Our focus will be to strengthen the health development army and community participation. We would like to introduce family health centers in big cities. We would like to increase the productivity of our health workers, and reduce inefficiencies in the supply chain. Last but not least, I’d like to emphasize one thing: our partners are asking for value for money, but we also want to see value for many.”
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