Impact of Ethiopia’s Integrated Budget and Expenditure Accounting Information System on Financial Management of Donor Funded Government Projects in Ethiopia
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Date
2026-05-02
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Addis Ababa University
Abstract
System (IBEX) on the financial management of donor-funded government projects. Agency Theory, Stewardship Theory, Diffusion of Innovations Theory, and TOE Framework were utilized to propose an understanding of IBEX as a multidimensional construct involving such IBEX characteristics as transparency, efficiency, compliance, integration, usability, and credibility. The research methodology involved a quantitative cross-sectional survey design with data being collected from 236 project stakeholders, including project managers, finance officers, accountants, and budget officers ,working on donor-funded projects within different regions in Ethiopia. According to the multiple regression results, six IBEX characteristics together accounted for 62.3% of the variance in the project financial management performance (R² = 0.623, p < .001). In particular, system efficiency showed the greatest impact on the outcome (β = 0.271, p < .001), whereas credibility came second (β = 0.215, p < .001). Transparency (β = 0.198, p = .001), compliance (β = 0.176, p = .002), integration (β = 0.148, p = .008), and usability (β = 0.123, p = .038) demonstrated lower yet statistically significant relationships with the financial management outcome. Overall, the paper proved that IBEX has substantially contributed to the transformation of Ethiopian public financial management especially concerning the increase of transparency, compliance, and credibility. At the same time, some issues regarding system integration, usability, and donor confidence should be addressed further. Based on the results obtained, recommendations were formulated concerning improving system efficiency, strengthening technical support, accelerating IBEX integration of donor-funded projects, and developing IBEX donor compliance features.
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IBEX, Public Financial Management, Donor-Funded Projects, Financial Management Outcomes, System Efficiency, System Credibility, System Integration