Ethiopia’s New Development Cooperation Programme with Finland: A Focus on Education and Climate Resilience

Ethiopia’s Ministry of Finance recently announced the launch of a new development cooperation programme in partnership with Finland, set to run from 2026 to 2028. This initiative is designed to align with Ethiopia’s national priorities, aiming to address critical areas such as education, climate resilience, and digital transformation.

Key Focus Areas

Education and Skills Training

One of the programme’s primary objectives is to enhance access to quality education and skills training. By investing in educational infrastructure and resources, this initiative seeks to combat the alarming rates of learning poverty affecting nearly 90% of children in Ethiopia. Detailed reforms will be implemented to improve educational outcomes and ensure that future generations are better prepared for the workforce.

Rural Development and Water Access

Ethiopia, home to over 126.5 million people as of 2023, largely comprises a rural population, with more than 80% living in these areas. Despite having abundant water resources, access to clean and reliable water remains inconsistent. The new programme prioritizes water, sanitation, and hygiene infrastructure to meet basic needs and promote sustainable development.

The initiative aims not only to improve water resource management but also to assist vulnerable groups, including refugees and host communities. To support this, significant investments will be directed towards enhancing local infrastructures, thereby increasing resilience against recurring droughts.

Promoting Climate Resilience and Digitalisation

In a bid to strengthen Ethiopia’s climate resilience, the programme will implement various measures that address environmental challenges. Digital transformation efforts will also be a crucial component, aiming to modernize Ethiopia’s infrastructure and promote technological adoption across various sectors.

Addressing Human Capital Gaps

Ethiopia faces critical human capital challenges, as evidenced by a human capital index of just 0.38 in 2020. Stunting, which affects 37% of children under five, poses a major obstacle to long-term developmental progress. The government recognizes the urgency of addressing these issues and has initiated reforms to provide better educational opportunities and health services.

In April 2025, Ethiopia signed two substantial agreements worth $96 million with the World Bank to bolster the education sector. These partnerships represent a strategic move toward improving educational access and quality.

Groundwater Mapping Initiative

In an effort to secure sustainable water management, authorities launched a five-year project to identify and map groundwater resources. This initiative is considered vital for future planning and to enhance water resource management strategies.

Conclusion

As Ethiopia embarks on this transformative development cooperation programme with Finland, the comprehensive approach targeting education, rural development, climate resilience, and digitalisation is seen as a crucial step toward sustainable growth. By prioritizing these focus areas, Ethiopia aims to build a more resilient and prosperous future for all its citizens.

For more information, explore the World Bank’s resources, which provide further insights into Ethiopia’s strategic initiatives.