Addis Ababa, Megabit 30, 2017 EC (April 8, 2025) — The Ethiopian government has announced the creation of a new initiative called ‘Ethio-Aid’, a national disaster response mechanism intended to address emergencies using domestically mobilized resources. The announcement comes in the context of reduced international aid, particularly following the suspension of assistance from the United States Agency for International Development (USAID).

The Ethio-Aid program was presented during a parliamentary discussion on a new draft proclamation concerning disaster risk management. According to the draft, 3% of the national budget will be allocated annually to a dedicated disaster response fund. Based on the current budget of 1.5 trillion birr, this equates to approximately 45 billion birr per year.

All residents—including individual citizens, public and private employees, institutions, and organizations—will be expected to contribute, either mandatorily or voluntarily. The draft proclamation specifies that both governmental and non-governmental entities will be part of this national contribution effort.

The Ethiopian government stated that the goal of Ethio-Aid is to enhance the country’s capacity to respond to natural disasters, conflict-related emergencies, and other crises. In addition to addressing domestic needs, the initiative is also intended to support neighboring countries during times of hardship.

The decision to launch Ethio-Aid comes after USAID suspended most of its humanitarian assistance to Ethiopia in 2023. The suspension followed concerns related to the diversion of aid and accountability issues during the conflict in northern Ethiopia. The halt has had a significant impact, particularly on populations reliant on food assistance, medical support, and emergency relief. According to humanitarian reports, millions of Ethiopians, including internally displaced persons and drought-affected communities, have been affected by the aid reduction.

In light of these developments, Ethio-Aid is positioned as a long-term strategy to strengthen self-reliance in emergency response. Officials from the Disaster Risk Management Commission indicated that the funds collected will be used to build a permanent, well-resourced disaster response institution.

While some observers have raised questions about the economic implications for citizens amid ongoing inflation and high living costs, proponents argue that mobilizing internal resources is necessary to ensure timely and coordinated responses to emergencies.

Implementation of the Ethio-Aid program is expected to begin with the next fiscal year, pending final approval of the draft legislation and development of operational guidelines.