| Abstract: | This research assessed the effectiveness of result-based grant management practice by INGOs operating in Addis Ababa. To achieve this objective descriptive research design with both quantitative & qualitative approaches were applied, and data were collected from primary and secondary sources through questionnaire. Questionnaire survey were collected from30 randomly selected INGOs. A sample of 90 INGO staffs from grant, Finance and M&E experts who were purposively selected due to their appropriateness participated in the data collection process. In addition, key informants' interviews were done with 3 Donors and 4 Government officials which makes a total of 96 from total 124 population. The data collected from the questionnaire were analyzed using descriptive statistical tools such as of frequency, percentage, mean and standard deviations. The results of this study indicated that INGOs are practicing result-based grant management. However, they are not effective in implementation because they lack the cornerstones for effective RBGM including putting clear indicator for result measurement, flexibility for learning, adapting and improving within the project timeframe, implement certain millstones from a project with their own seed money & ask reimbursement then after. Without these elements RBGM will not be realized and said to be effective.
The research also found out that INGOs faced challenges such as lack of technical skills in issues like financial risk management, and contract negotiation, easily satisfied and overwhelmed by results that can be achieved quickly because of their short-term horizon, corruption and limited management capacities while implementing result-based grant management. The researcher recommended for INGOs to be proactive in considering how amenability of their sectoral areas, building their capacity in financial risk management, and to increase their grant negotiation skill by emphasizing on setting measurable & verifiable indicators and finally to manage their reserve liquidity and engage on IGA (income generating activities) to have capacities to pre-finance their work. For donors to design results collaboratively with INGOs to minimize the potential for distortion, permit the flexibility for learning, adapting, and improving, ensuring a level of cash flow that doesn’t weakness INGOs that have not enough reserves and must create close collaboration with other donors who do not apply RBGM modality instead of taking RBGM as standalone approaches. |
