ESDTEV Secures €25.6M in Foreign Funding for Estonian Development Cooperation in 2025In 2025, the Estonian Centre for International Development Cooperation (ESDTEV) secured €25.6 million in external funding to expand the scope and impact of Estonia’s development cooperation projects. This funding not only supports partner countries in achieving their development goals but also generates nearly €300,000 in tax revenue per million euros for Estonia, as most projects are implemented by Estonian companies.
Thanks to these contributions, ESDTEV’s total budget grew by 63 percent to €35.9 million by 2026, a notable increase amid a period when many countries reduced their development cooperation spending. The organization’s efficiency and focus on areas where Estonian expertise adds value, such as cybersecurity, education, and rule of law, have made it an attractive channel for international development funds.
The largest portion of foreign funding—€15.4 million—was allocated to Ukraine’s reconstruction, supported through agreements with countries including Sweden, Norway, Ireland, Italy, the United Kingdom, and Liechtenstein. Ukraine remains the highest priority for Estonian development cooperation, with the portfolio increasing by 1.4 times in 2025 thanks to strong bilateral relations and European accreditation, which opens further opportunities for EU-based funding.
Sector-wise, ESDTEV attracted significant investment in e-governance and cybersecurity, with over €14 million directed toward strengthening Ukraine’s cyber resilience and €9 million aimed at improving cyber capacity in African countries. According to Andres Ääremaa, Head of E-Governance and Cybersecurity, foreign funding not only increases project volume but also enables Estonia to export its expertise and solutions to complex reform environments, enhancing the international competitiveness of Estonian companies and experts.
Established in 2021 under the Ministry of Foreign Affairs, ESDTEV coordinates and implements Estonia’s development cooperation activities and represents the country in international initiatives. Its priorities include supporting Ukraine, which receives around 75% of the development cooperation budget, as well as advancing democracy, rule of law, quality education, e-governance, and cybersecurity in Estonia’s strategic partner countries across the EU’s Eastern Neighborhood and Africa.
