Development Co-operation Profiles

Estonia

Introduction

Estonia’s vision for development co-operation is to contribute to eradicating poverty and attain the Sustainable Development Goals (SDGs) by sharing its knowledge and experience with transition countries. Estonia focuses its co-operation on partner countries in its region, including by scaling up assistance to Ukraine. Estonia is recognised for its strong expertise in digital technology and education. Estonia’s total official development assistance (ODA) (USD 109.3 million, preliminary data) decreased in 2023, representing 0.28% of gross national income (GNI).

Find the methodological notes behind the profile here.

Policy

The Estonian Foreign Policy Strategy 2030 signals how development co-operation and humanitarian aid are central to Estonia’s foreign policy. The government’s Development Cooperation and Humanitarian Aid Strategy 2024-2030 establishes the sectoral and geographic priorities of Estonia’s development co-operation. It upholds Estonia’s continuous support to existing priority partner countries in the Eastern Partnership region, including reprioritising Armenia as a partner country. Thematic priorities include strengthening governance and human rights, promoting quality education, contributing to economic development, empowering civil society, and ensuring peace and stability. The strategy reiterates Estonia’s commitment to reach the 0.33% target by 2030. It has a regional strategy for Africa for 2020-2030 focused primarily on development co-operation in Botswana, Kenya, Namibia and Uganda.

As one of the founders of the European Union’s Digital4Development Hub, Estonia is actively engaging with its Eastern European and African partners on digitalisation. Estonia focuses on engaging more as part of Team Europe in core areas where Estonia has recognised expertise, such as digital governance, education and innovative entrepreneurship.

ODA allocation overview

Estonia provided USD 109.3 million (preliminary data) of ODA in 2023 (USD 97.7 million in constant terms) representing 0.28% of GNI.1 This was a decrease of 51.4% in real terms in volume, notably due to a decrease in in-donor refugee costs, and a decrease in the share of GNI from 2022. Estonia is in line with its European-level commitment of 0.33% ODA/GNI ratio by 2030. Estonia provided all of its ODA as grants in 2022.2

In 2023, Estonia ranked 20th among Development Assistance Committee (DAC) member countries when ODA is taken as a share of GNI. In 2022, Estonia had one of the highest shares (77.4%) of bilateral commitments through the multilateral system earmarked for humanitarian assistance. It also had the highest share of gross bilateral ODA that is unallocated amongst DAC members and one of the highest shares of total gross bilateral ODA attributed to in-donor refugee costs (87.5%) in 2022, an exceptional year for Estonia due to the unprecedented volume of refugees to Estonia. The increase of in-donor refugee costs in 2022 means that shares of bilateral ODA allocated to other areas may have decreased from 2021 to 2022, even if absolute volumes have not.

 

Notes: Data on official development assistance (ODA) volumes (figure above) are in constant 2022 prices. Data for 2023 are preliminary. See the methodological notes for further details.

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Estonia is committed to several international targets and Development Assistance Committee standards and recommendations. Learn more about DAC recommendations.

Performance against commitments and DAC recommendations

Description	Target	2021	2022	2023, preliminary
ODA as a share of GNI (%)	0.33	0.16	0.54	0.28
Total ODA to least developed countries as a share of GNI (%)	0.15-0.20	0.03	0.02
Share of untied ODA covered by the DAC Recommendation	100	0	0
Share of untied ODA (All sectors and countries beyond the scope of the Untying Recommendation) (%)		0	21.5
Grant element of total ODA (%)	>86	100	100

Note: ODA: official development assistance; GNI: gross national income; DAC: Development Assistance Committee. This table only includes information about ODA data-related DAC recommendations.

Estonia provided most of its ODA bilaterally in 2022. Gross bilateral ODA was 77.9% of total ODA disbursements. One per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Estonia allocated 22.1% of total ODA as core contributions to multilateral organisations.

 

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ODA for Ukraine

In 2023, Estonia provided USD 10.4 million (preliminary data) of net bilateral ODA to Ukraine to respond to the impacts of Russia's war of aggression, a 41.4% increase from 2022 in real terms. USD 3 million of the amount was allocated to humanitarian assistance in 2023, a 17.3% decrease from 2022.

 

Note: The amount reported in 2023 is an estimate, based on preliminary figures reported to the OECD and published in April 2024.

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In 2022, Estonia provided USD 45.8 million of gross ODA to the multilateral system, an increase of 6.9% in real terms from 2021. Of this, USD 44.4 million was core multilateral ODA, while USD 1.4 million was non-core contributions earmarked for a specific country, region, theme or purpose. Project-type funding earmarked for a specific theme and/or country accounted for 13.5% of Estonia's non-core contributions, and 86.5% was programmatic funding (to pooled funds and specific-purpose programmes and funds).

 

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Eighty-three per cent of Estonia's total contributions to multilateral organisations in 2022 were allocated to EU Institutions.

 

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The UN system received 6.8% of Estonia's multilateral contributions, of which USD 1.1 million (36.1%) represented earmarked contributions. Out of a total volume of USD 3.1 million to the UN system, the top three UN recipients of Estonia's support (core and earmarked contributions) were UN-OCHA (USD 0.7 million), UNHCR (USD 0.4 million) and the UN secretariat (USD 0.4 million).

 

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See the section Geographic, sectoral and thematic focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system. Learn more about multilateral development finance.

Bilateral ODA

In 2022, Estonia's bilateral spending increased compared to the previous year. It provided USD 156.5 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 511.5% in real terms from 2021.

In 2022, country programmable aid was 4% of Estonia's gross bilateral ODA, compared to the DAC country average of 42%. This was because in-donor refugee costs were USD 136.9 million in 2022 and represented 87.5% of Estonia's total gross bilateral ODA.

 

Note: NGO: non-governmental organisation.

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In 2022, Estonia channelled bilateral ODA mainly through the public sector. Technical co-operation made up 1.2% of gross ODA in 2022.

 

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Civil society organisations

In 2022, civil society organisations (CSOs) received USD 6.6 million of gross bilateral ODA, of which 1.5% was directed to developing country-based CSOs. Overall, 0% of gross bilateral ODA was allocated to CSOs as core contributions and 4.2% was channelled through CSOs to implement projects initiated by the donor (earmarked funding). From 2021 to 2022, the combined core and earmarked contributions for CSOs decreased as a share of bilateral ODA, from 30.3% to 4.2%. Learn more about the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Aid.

 

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Geographic, sectoral and thematic focus of ODA

In 2022, Estonia's bilateral ODA was primarily focused on ODA-eligible countries in Europe. USD 7.4 million was allocated to ODA-eligible countries in Europe (of which 89% for Ukraine) and USD 1.5 million to Africa, accounting respectively for 4.7% and 1% of gross bilateral ODA. USD 1.1 million was allocated to Asia. Europe was also the main regional recipient of Estonia's earmarked contributions to multilateral organisations.

Bilateral ODA by recipient country

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In 2022, 6.3% of gross bilateral ODA went to Estonia's top 10 recipients. Its top 10 recipients are primarily in Europe, sub-Saharan Africa, Afghanistan and the Middle East. The share of gross bilateral ODA not allocated by country was 93.4%, of which 93.7% consisted of expenditures for processing and hosting refugees in provider countries.

 

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In 2022, Estonia allocated 0.02% of its GNI to the least developed countries (LDCs). Estonia allocated the highest share of gross bilateral ODA (5%) to lower middle-income countries in 2022, noting that 93.4% was unallocated by income group. Least developed countries (LDCs) received 0.3% of Estonia’s gross bilateral ODA (USD 6.7 million). Additionally, Estonia allocated 0.7% of gross bilateral ODA to land-locked developing countries in 2022, equal to USD 1 million.

 

Note: LDC: least developed country; LIC: low-income country; LMIC: lower middle-income country; UMIC: upper middle-income country; MADCTs: more advanced developing countries and territories.

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Fragile contexts

Support to fragile contexts reached USD 1.9 million in 2022, representing 1.2% of Estonia's gross bilateral ODA. Thirty per cent of this ODA was provided in the form of humanitarian assistance, the same as in 2021, while 13.3% was allocated to peace, a slight decrease from 14.7% in 2021. Eleven per cent went to conflict prevention, a subset of contributions to peace, representing an increase from 2% in 2021. Learn more about support to fragile contexts on the States of Fragility platform.

 

Note: HDP: humanitarian-development-peace. The chart represents only gross bilateral official development assistance that is allocated by country.

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Sectors

In 2022, more than half of Estonia's bilateral ODA was allocated to 'other' sectors. Investments in this area accounted for 96.1% of bilateral ODA commitments (USD 147.4 million) primarily for support to refugees in donor countries (USD 136.9 million). ODA for humanitarian assistance totalled USD 3.9 million, focusing on emergency response (USD 3.4 million). ODA for social infrastructure and services amounted to USD 1.7 million (1.1% of bilateral ODA). Earmarked contributions to multilateral organisations focused primarily on humanitarian assistance in 2022.

 

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ODA for COVID-19

In 2022, Estonia disbursed USD 0.7 million in ODA for the COVID-19 response, down from USD 5.4 million in 2021.

Gender equality

In the period 2021-22, Estonia committed 8.9% of its screened bilateral allocable aid to gender equality and women's empowerment, as either a principal or significant objective (down from 15.3% in 2019-20), compared with the 2021-22 DAC average of 43.3%. This is equal to USD 1.1 million of bilateral ODA in support of gender equality. Unpacking the gender equality data further:

• The share of screened bilateral allocable aid committed to gender equality and women's empowerment as a principal objective was 4.4% in 2021-22, compared with the DAC average of 3.9%.

• Estonia includes gender equality objectives in 6.7% of its ODA for humanitarian aid, below the 2021-22 DAC average of 17%.

• Estonia screens the majority of bilateral allocable aid activities against the DAC gender equality policy marker (85.5% in 2021-22).

• Estonia committed USD 50 000 of ODA to end violence against women and girls and USD 18 000 to support women's rights organisations and movements and government institutions in 2021-22.

Learn more about Gender Equality and the Empowerment of Women and Girls: DAC Guidance for Development Partners and the DAC Recommendation on Ending Sexual Exploitation in Development Co-operation.

 

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Environment

In 2021-22, Estonia committed 8.5% of its total bilateral allocable aid (USD 1.3 million) in support of the environment and the Rio Conventions (the DAC average was 35.1%), up from 3.9% in 2019-20. Unpacking the environmental data further:

• Nine per cent of screened bilateral allocable aid focused on environmental issues as a principal objective, compared with the DAC average of 11%.

• Five per cent of total bilateral allocable aid (USD 800°000) focused on climate change overall, up from 1.3% in 2019-20 (the DAC average was 30.5%). Estonia had a greater focus on adaptation (6.1%) than on mitigation (5.4%) in 2021-22.

• One per cent of screened bilateral allocable aid (USD 17°000) focused on biodiversity overall, down from 2.1% in 2019-20 (the DAC average was 7.2%).

Learn more about the DAC Declaration on Aligning Development Co-operation with the Goals of the Paris Agreement on Climate Change [DAC/CHAIR(2021)1/FINAL].

 

Note: In this figure, the category climate includes climate change mitigation and climate change adaptation efforts.

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Performance against environment and Rio Markers, 2021-2022

Marker	Constant 2022 USD million	% of bilateral allocable
Environment	1.3	9.9
Rio markers:
Biodiversity	0	0.8
Desertification	0	0
Climate change mitigation only	0	0
Climate change adaptation only	0.1	0.6
Both climate change mitigation and adaptation	0.7	4.6

Note: Individual Rio Markers should not be added up as this can result in double counting.

Other cross-cutting sectors and themes

In 2022, Estonia:

• Did not seek exemptions regarding the payment of local tax and customs duties for ODA-funded goods and services. It does not have a general policy and does not make information available on the OECD Digital Transparency Hub on the Tax Treatment of ODA.

• Committed USD 0.4 million (4.6% of its bilateral allocable aid) to promote aid for trade and improve developing countries' trade performance and integration into the world economy.

Effectiveness of development co-operation

The Global Partnership for Effective Development Co-operation monitoring exercise tracks the implementation of the effectiveness commitments. Following the reform of the exercise during the 2020-22, the 4th global monitoring round (2023-26) has resumed. Information on partner countries' participation in the exercise as well as their progress can be followed at the Global Dashboard.

Total official support for sustainable development

Total official support for sustainable development (TOSSD) is an international statistical standard that monitors all official and officially supported resources for financing the SDGs in developing countries, as well as for addressing global challenges. It provides a broad measure of development finance with the objective of increasing transparency and accountability of all external support that developing countries receive. In 2022, activities reported by Estonia as TOSSD totalled USD 202.8 million, up from USD 62.1 million in 2021, and Estonia's TOSSD activities mostly targeted SDG 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels, and SDG 10 Reduce inequality within and among countries. Activity-level data on TOSSD by recipient are available at: https://tossd.online.

Institutional set-up

The Ministry of Foreign Affairs is the key institution responsible for managing and co-ordinating Estonian development co-operation and humanitarian assistance, as stipulated by the Government of the Republic Act. Estonia’s development co-operation system was significantly reorganised within the framework of the development co-operation reform in 2020-22. The reorganisation streamlined and improved the effectiveness of the development co-operation administration by separating policy making from implementation. It also established clear lines of authority and delineated roles within the system. The reform culminated in 2021, establishing the Estonian Centre for International Development (ESTDEV). ESTDEV is a government-funded foundation responsible for managing and implementing Estonia’s development co-operation and NEXUS projects.

In 2023, Estonia had 12 staff based in Estonia and 3 locally employed staff working for the Development Cooperation and Humanitarian Aid Department of the Ministry of Foreign Affairs; 28 staff working at ESTDEV in headquarters and 4 in partner countries. Five Estonian staff members are on missions to Brussels, Geneva, New York, and Paris and are also working on development co-operation. These numbers do not include staff working part time on development co-operation across the government.

 

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Regular dialogue with CSOs to set up Estonian policy priorities and strategies through the Roundtable for Development Cooperation (AKÜ) helps build member organisations’ capacity based on their needs. AKÜ representatives are present on both the Estonian Commission for Sustainable Development’s and ESTDEV’s Governing Boards and will also be included in the Ministry of Foreign Affairs’ advisory council.

Quality and oversight

Internal systems and processes help ensure the effective delivery of Estonia’s development co-operation. Select features are shown in the table below.

Features of Estonia’s systems for quality and oversight

Risk management	Programmatic, contextual and financial risks are identified in project proposals and updated during monitoring visits. Estonia emphasises the prevention side of corruption in line with its own experience in fighting corruption, implementing the rule of law, transparency and adopting e-governance solutions.
Innovation and adaptation	Estonia’s horizontal priorities include the widespread use of information and communication technologies and the introduction of e-governance solutions. Estonia draws on lessons from its own human-centred approach to digitalisation, for example, by supporting Kenya’s digital transition towards sustainable and human-centred digitalisation.
Results management	Estonia is piloting a system to monitor performance and aggregate results of its development co-operation in the Ministry of Foreign Affairs and Estonian Centre for International Development. It is getting other line ministries and actors on board and learning from its bilateral and multilateral partners.
Evaluation	A formal evaluation system is yet to be developed.
Communication and transparency	The Development Cooperation Roundtable’s (AKÜ) shadow reports on Estonia’s annual official development assistance are a valuable source of critical reflection to Estonian development co-operation. Estonia raises awareness on development co-operation and humanitarian aid and global education in schools together with the Ministry of Education and Research.

Additional resources

Ministry of Foreign Affairs of the Republic of Estonia: https://vm.ee/en

Estonian Center for International Development: https://www.estdev.ee/?lang=en

Member of the OECD Development Assistance Committee (DAC) since 2023.

The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable aid, the gender equality policy marker, and the environment markers.

Notes

← 1.  DAC members adopted the grant-equivalent methodology starting from their reporting of 2018 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.

← 2.  Other providers also provide non-grants, which include sovereign loans, multilateral loans, equity investment and loans to the private sector.