• Focus areas include education, rural development, climate resilience, digitalisation
• Programme targets water access, vulnerable groups and human capital gaps

Ethiopia’s Ministry of Finance said on Thursday, Jan. 15, 2026, it had launched a new development cooperation programme with Finland for 2026-2028, aimed at supporting the country’s national priorities. The programme will focus on improving access to quality education and skills training, strengthening peace and social cohesion, promoting rural development and supporting digital transformation. It also includes measures to strengthen climate resilience.

Water, sanitation and hygiene infrastructure will be prioritised to meet basic needs and support sustainable development. The programme will also focus on protecting vulnerable groups, including refugees and host communities. Ethiopia, Africa’s second most populous country, had 126.5 million people in 2023, according to the World Bank. More than 80% live in rural areas. While the country has significant water resources that meet about 90% of household supply, access remains uneven, leaving many regions vulnerable to recurring droughts.

These constraints have also hurt human capital. In 2020, Ethiopia’s human capital index stood at 0.38. Nearly 90% of children faced learning poverty and 37% of under-fives were stunted, threatening long-term development prospects. To address these challenges, the government has introduced reforms to improve water resource management, strengthen infrastructure and upgrade data collection. In April 2025, Ethiopia signed two agreements worth $96 million with the World Bank to support the education sector.

That same month, authorities launched a five-year project to identify and map groundwater resources, seen as key to long-term planning and sustainable water management.

Ingrid Haffiny