Since 2007, the Government of Ethiopia and development partners have been using the Aid Management Platform. For more information, please see the brochure and the latest ODA bulletin published by the Ministry of Finance and Economic Cooperation. 


 Total development assistance to Ethiopia was USD 3.9 billion in 2013, the latest year for which OECD/DAC data is available. Since 2004, ODA to Ethiopia has increased by 66% in real terms. The five largest providers of development assistance to Ethiopia are the World Bank, the United States, the United Kingdom, the African Development Bank, and the Global Fund. The table below shows the top bilateral and multilateral partners for 2012-13.

Top Bilateral Partners (in USD m)

Top Multilateral Partners

includes core resources only

 (in USD m)

 

1. United States 610.3 1. World Bank (IDA) 847.6
2. United Kingdom 466.3 2. African Development Bank (AfDF) 222.0
3. European Union 170.8 3. The Global Fund 182.7
4. Japan 146.6 4. GAVI 101.0
5. Canada 128.9 5. UN Funds and Programmes 80.1

In the past decade, two main trends in development co-operation in Ethiopia can be discerned. The first is the marked decrease in the share of humanitarian aid. Whereas in 2005 humanitarian aid amounted to 20% of gross ODA and in 2009 17%, in 2013 it represented only 10%. This corresponds to a decline in the absolute volume of humanitarian assistance from around USD 700 million in 2009 to USD 400 million in 2013. The move from humanitarian to development assistance reflects the fact that the country has built some resilience in large part thanks to safety net programmes for the most vulnerable, in order to sustain some of the worst humanitarian emergencies (an example is the 2011 Horn of Africa drought where the country fared well compared to its neighbors). Nonetheless, the humanitarian caseload is still significant, and often recurs in the same regional hotspots from one year to the next. This points to the presence of more systemic vulnerabilities that might be better targeted by development assistance.

The second trend refers to the increased share of development assistance provided in the form of concessional loans compared to grants. In 2004, loans made up only 14% of total development assistance, in 2009 they were 25%, and in 2013 the share of loans reached 32%. According to the World Bank/IMF debt sustainability exercise conducted in 2011/12, Ethiopia is able to assume external public debt at relatively low risk. Concessional loans from multilateral partners – and increasingly from bilateral partners – offer a way to expand Ethiopia’s development assistance portfolio at a relatively low cost for providers of development assistance. As the country moves towards lower-middle income country status and accesses international financial markets (as demonstrated by Ethiopia’s sale of Eurobonds last year and its plans to start an equities and secondary debt market), one would expect the ratio of ODA loans to grants to continue to increase.

According to the Ministry of Finance and Economic Development (MoFED), aid on-budget reached USD 2.9 billion from July 2013 to June 2014. The Government also receives grants and financing from other sources, including from non-DAC donors such as China, India; philanthropic organisations including the Bill and Melinda Gates Foundation; and new ‘social impact investors’ such as the Shell Foundation and the Acumen Fund. MoFED recorded USD 161 million from China provided and USD 31 million from India in EFY 2006 (July 2013 to June 2014).

In the absence of bilateral general budget support in Ethiopia, large multi-donor programmes support the Government’s efforts in alleviating poverty. A few of the largest multi-donor programmes (pooled funds) currently in place include the Promotion of Basic Services Programme (PBS); the Productive Safety Net Programme (PSNP); the General Education Quality Improvement Programme (GEQIP); the Agricultural Growth Programme (AGP); and the Sustainable Land Management Programme (SLMP). Development partners contribution to these five large programmes account for over one-quarter of official development assistance, or an estimated USD 806 million in 2014.

 

Relevant links:

2015 Ethiopia Development Partner Profiles

2014 Ethiopia Development Partner Profiles

Development aid stable in 2014 but flows to poorest countries still falling

Ethiopia's Aid Management Platform

Analysis of Post-Busan (Data)

International Aid Transparency Initiative (IATI)

here will be the donor's profile