1. Horn Economic and Social Policy Institute (HESPI) Institutional Profile Contents: 1. History and Purpose 2. Mission of HESPI 3. Location, Target groups and stakeholders 4. Organizational Model 5. Senior Leadership 6. Approaches and strategies 7. Priority Areas 8. Research Programs 9. Funding 10. Performance statistics

2. 1.History and Purpose HESPI is an independent, non-profit think tank and consultancy firm established in 2006 by professionals who know the IGAD context and committed to enhance its development HESPI aims to: Promote high-quality policy research, analysis and provide advisory services to assist African Governments, the private sector and other stakeholders to facilitate broad-based economic growth and poverty reduction Advocate and promote sound polices and to assist with the formulation and implementation of relevant economic and social policies to improve economic and social policy making for economic growth and poverty reduction

3. 2. Mission of HESPI To contribute to the achievement of regional and national development goals, facilitate broad based economic growth and poverty reduction through: Conducting objective economic and social policy research to improve policy formulation and implementation for broad- based economic growth and poverty reduction Enhancing institutional capacity for sound management, promoting regional integration, stability& conflict prevention Advocate and promote sound policies and to assist with the formulation and implementation of sound economic and social policies and interacts with principal institutions and entities to address the challenges the region faces

4. 3. Location, Target groups and stakeholders HESPI’s HQ is in Addis Ababa, Ethiopia and it focuses on 8 IGAD region countries (Ethiopia, Kenya, Uganda, Eritrea, Somalia, South Sudan, Sudan and Djibouti) HESPI’s target groups include policy makers at regional and national levels, development partners, and the non-state actors such as CSOs, the private sector, Regional Economic Communities, IGAD Member Country Governments, Academic and Research institutions and citizens of the IGAD sub-region and the developing world

5. 4. Organizational Model Head quartered in Addis Ababa, Diplomatic Capital of Africa; HESPI staffed with Highly experienced and qualified senior policy Researches and research fellows HESPI has sub offices in IGAD member states to work closely with the policy makers including in Djibouti with the IGAD Secretariat Formal partnership with the African Capacity Building Foundation –a pan African organization, the UNECA, The African Union, AfDB and other policy research and capacity building institutions HESPI has General Assembly, which comprises founding members, senior associates, and 10 Board members currently composed of the Managing Director (MD) and Deputy Managing Director HESPI also has an international advisory panel which comprises a prestigious group of experts from the sub-region and abroad who have a strong commitment and passion for the development of the Horn of Africa and other low income countries The MD (former IMF Economist and Policy Person) and department directors manage and run the day to day activities of the Institute The Board meets at least twice a year and exercises oversight over the strategies, policies, operations, and finances of HESPI

6. 5. Approaches and Strategies Conducts high quality socio-economic policy research and studies on country specific and core areas of common regional policy issues Creates Policy forums, produces publications, interact with principal institutions and entities to maximize dissemination and impacts of sound- policy options and research products Works with IGAD member states and regional organizations for institutional and human capacity building and instilling values for better management of growth through advise and skills development Assist in development, Evaluation and Monitoring of economic and social policies of the IGAD region

7. 6. Priority areas Objective and high quality research in economic growth; and institutional building, social progress Engagement in productive sectors, and programs that address the needs of the private sector Strengthening advocacy and promotion of appropriate and sound policies N.B. The research, policy advice and capacity building programs focus on economic and financial governance; macroeconomic and social sector policies, including education, environmental sustainability and health policies; trade and regional integration; private sector development and conflict management

8. 7. Priority Areas contd. Through its researches, HESPI assist in building and strengthening effective institutional capacities and processes of socio-economic policy formulation to: Promote creation of capable IGAD states with improved public services; enhanced public finance management by promoting accountability, transparency, and anti-corruption measures; Build capacity in policy analysis to inform and advise the policy making and implementation processes; Strengthen institutional and human capacity to analyze, formulate and implement sound broad-based economic and social policies; Promote financial sector reforms to increase savings and to provide credit efficiently; Promote national and regional food security and sustainable agricultural production; Encourage and facilitate regional economic and social integration; Work towards prevention of intra-State and inter-State conflicts and facilitating dialogue to resolve emerging challenges before they develop into full-fledged conflict;

9. 8. Research Programs HESPI’s research programs are organized under the following broad headings: Economic and Financial policy Researches pertinent for wider policy understanding and recommendations Analysis of institutional capacities and processes on policy formulation with technical assistance in such processes To build mechanisms and capacity for knowledge dissemination and stakeholders outreach Social and productive sectors and strengthen thriving private sector in the IGAD region (new initiatives)

10. 9. Funding HESPI has been receiving funding and Planning to continue funding relationships with the following: African Capacity Building Foundation-a pan African Capacity Building organization The African Development Bank (AfDB) IGAD governments UN ECA HESPI own resources and Other (new) donors

11. 10. Examples of Key Performance statistics A. Institutional Capacity Building I. HESPI initiated and facilitated Conference on Somalia state building: A consultative meeting on Rebuilding Viable State and Effective Institutions in Somalia: Internal and External assessment and M&E reports with the current Somalia government indicated that policy recommendations made at the Somalia reconstruction conference contributed to the enhancement of the formulation of the New Deal with the EU as well as strengthening the on-going political reconciliation with regional political entities under the overarching Federal governance structure It also helped the Somalia government in the process of starting up PFM institutions which are currently taking roots. A joint government and donor process is now being put in place to further enhance financial integrity; which are influenced by the policy recommendations and adoption from the conference

12. 10. Examples … contd. II. The Financial integrity institutions capacity assessment and building in South Sudan HESPI helped the Ministry of Finance, Bank of South Sudan, Anti- corruption commission, Public Accounts Committee of the legislative, National Audit Chamber, etc in South Sudan in identifying the capacity gaps Over 13 policy and technical recommendations and Technical Assistances made by HESPI are now helping the Financial Institutions to revamp their operations The South Sudan Government and Financial Integrity Institutions started to develop useful internal policies, operational manuals, revitalizing the IT systems and acquiring more qualified Human Resources following technical recommendations and supports

13. 10. Examples …Contd. III. Leadership and Public Finance Management (PFM) in a post-conflict country: Training in Leadership and PFM for Senior Officials of the Government of Somalia This training created high level of understanding with the participated Director Generals of the government Ministries of Somalia on the role of leadership and PFM, which has been helpful in the post-conflict nation building The Training Seminar was organized with the support of the Uganda Management Institute (UMI) in Kampala

14. 10. Examples … Contd. III. A training workshop on Computing and Accounting Principles by HESPI associates and consultants to the Transitional Government of Somalia (TFG) mid-level officials in Mogadishu, which markedly improved operation system in the process of institution building IV. A hands-on-training on Treasury functions for the Ministry of Finance of Somalia, Uganda, Kampala provided by HESPI. The participants are the nucleus of the Treasury Department of the Ministry of Finance of Somalia and the training contributed a lot in ensuring transparency and accountability in the Treasury

15. 10. Examples … Contd. V. HESPI organized Budget Training for TFG officials in Addis Ababa, Ethiopia and assisted in how to formulate National Budgets and get approved by the cabinet and parliament VI. HESPI in association with IGAD office for Somalia Peace and National Reconciliation conducted Consultative Meeting for Puntland and Somaliland cooperation and collaboration in Djibouti and assisted development of the Road Map for PL and SL cooperation VII. With financial support from the African Development Bank (AfDB), HESPI organized PFM and Financial Sector Reforms training for the TFG in Somalia. The training helped the staff of the Budget Unit in Formulation of the National budget which is approved by Cabinet and Parliament

16. 10. Examples …Contd. B. Research HESPI has been conducting several researches and developed various products which influenced the policy understanding and the way governments, regional institutions and policy makers the way they make decisions. Such research products include: HESPI conducted research on Reports on Financial Sector Developments in IGAD Member Countries on access to finance in African Regional Economic Communities and produced report on Financial Sector Development in IGAD member countries. It also produced a first paper that also assesses the case for a regional development bank for IGAD Conflict - Poverty Nexus: Breaking the Cycle in Low Income Countries (LICs). This study provided analysis of the linkage between conflict and poverty in LICs so that the cycle can be broken. The study recommends reforms to end the conflict-poverty cycle in LICs, including those in the Horn of Africa

17. 10. Examples … Contd. IX. HESPI did Assessment of Economic Integration in IGAD and Enhancing the Regional Efforts. This was a comprehensive assessment of the state economic integration in IGAD, and made recommendations on measures that would enhance the regional efforts X. HESPI contributed to the assessment of external reserves management in the Sudan, to advise on the respective proper mandates of the Bank of Sudan and the Bank of Southern Sudan XI. HESPI contributed to a study of aid management in 10 selected African countries and produced report entitled Effective Aid Management in Selected African Countries and submitted to the African Economic Research Council. The researched helped in developing the understanding of Rebuilding Institutional Capacity for Effective Aid Management in Africa