The aim of this thesis is to provide an in-depth understanding of the various Monitoring and Evaluation (M&E) activities involved and their effect on the organization’s productivity. The study has employed a qualitative research methodology by interviewing the key informants of the studied project called Ethiopians Driving Growth, and Entrepreneurship and Trade (EDGET), implemented by Mennonite Economic Development Associates (MEDA). The findings from the key informants interview and M&E process document review of EDGET project tell that the project lacks some essential elements of an effective M&E system for evidence based decision making process. Receiving and processing complete and accurate data in a timely manner was one of the challenges that the project faces. In addition to that financial and human resources and insufficient technological systems hinder the effectiveness of the M&E activities of the project. In order to enhance productivity, hiring additional staff dedicated to check the quality of data and to work on the dissemination of information, provide appropriate trainings to all levels of the M&E staff, appropriate technological advancement, and sufficient allocation of funds, and decentralization of decision making on M&E results are some of the vital recommendations made in this research