Economic and Financial Analysis (EFA) of SDC projects 01.01.2021-31.12.2025

Situation

The Swiss Agency for Development and Cooperation (SDC) receives its funds from the federal treasury and thus from Swiss taxpayers. It is therefore legally obliged to use these funds and assets in an orderly, efficient, cost-effective and economical manner in accordance with the objectives of the individual projects in question. Economic and financial analyses (EFA) are not only essential in the process of the proper use of funds but also beneficial throughout the project cycle. They allow for discussion and improvement of project sustainability, understanding of strengths and weaknesses during implementation and help in the review and preparation of subsequent project phases. As a result, SDC has been implementing EFA for several years. However, the results are still unsatisfying concerning the amount of projects implementing EFA. Consequently, SDC decided that it will be mandatory for all project phases with a budget above CHF 6 million to carry out an EFA (unless proven not appropriate). The HAFL Hugo P. Cecchini Institute at BFH, together with its partners of IKAT (International Quality Assurance Trainers, www.theikat.com), has been mandated by SDC to support technical backstopping for conducting EFA of projects funded by SDC.