Information and Communication Technologies (ICTs) have been expected as a powerful tool forrndevelopment. However, there is a high rate of e-government project failures. The purpose of thisrnstudy was to assess the challenges of managing development programs in public sector: the casernof e-government program in Ethiopia. Descriptive survey method was used to attain the objectivernof the study. The study was conducted by using 4 public institutions engaged in e-governmentrnprogram and or program project implementation and beneficiaries. Respondents were fromrnmanagement of the program/program project, experts, support staffs teachers, students and fromrnbusiness community. Respondents were selected through purposive sampling. Questionnaires,rninterviews, document review and observation techniques were employed. The statistical toolsrnused to analyze data were percentage, tables, graphs and charts. SPSS is employed to analyzernthe data. The results have revealed that e-government program has faced and still facing variousrnchallenges like lack of public awareness, limited participation of beneficiaries in design andrnimplementation, limited electronic service development culture in Ethiopia, lack ofrnorganizational capability, weak program governance and poor strategic e-readiness many ofrnwhich arise from lack of strategic e-readiness given appreciation to the efforts done so far. Asrnfar as the contributions of e-government in the area are concerned, it is insignificant. Therngovernment of FDRE has enacted e-government strategy in 2010, which is a tool for e-rngovernment program in Ethiopia. Its immediate impact will be discouraging against effortsrnexerted and even the cumulative positive effect of its outcome is time taking. In the long term itsrneffect will be highly encouraging as the experience from literature, empirical review andrndiscussion part shows. Office for e-government councils should be opened. Government in arnshort period shall designate e-government high level council members to overcome thernchallenges. Finally it will support to assure the expected outcome of the program