ESTDEV secured 25.6 million euros in foreign funding for Estonian development cooperation in 2025

The boost in foreign funding will allow Estonian development cooperation projects to increase in scope and impact and will create new opportunities for Estonian companies in Africa and the European Union’s eastern neighbourhood. 

"Partner countries are increasingly directing their development cooperation funds through Estonia and ESTDEV because we offer fast and efficient project management. We focus on areas where Estonian companies and organisations have strong added value to offer, like cybersecurity, education and rule of law," said Andrea Kivi, ESTDEV’s executive director. 

ESTDEV raised the most foreign funding for projects related to e-services development and cybersecurity. Over 14 million euros were invested through ESTDEV to increase Ukraine's cyber resilience and 9 million euros to enhance African countries' cyber capabilities. 

According to Andres Ääremaa, ESTDEV’s programme manager for e-governance and cybersecurity, attracting foreign funding accomplishes more than simply increasing project volume. 

"Every euro that comes to Estonia through international partners allows us to apply Estonian knowledge and solutions in complex reform contexts while simultaneously growing Estonian companies' and experts' international competitiveness," Ääremaa said. "E-services and cybersecurity projects clearly demonstrate how Estonian public and private sector experience becomes a trustworthy export product and supports both partner countries' resilience and Estonia's economy." 

According to Kivi, every million euros of foreign funding spent on project implementation by Estonian companies generates approximately 300,000 euros in tax revenue for Estonia. 

ESTDEV raised the largest portion of foreign funding - 15.4 million euros - for Ukraine's reconstruction, through funding agreements with Sweden, Norway, Ireland, Italy, the United Kingdom and Liechtenstein. 

"Supporting Ukraine is Estonian development cooperation's biggest priority, where we invest around 11 million annually. Last year, we grew our Ukraine portfolio by 1.4 times thanks to successful, direct bilateral relationships with Estonia's allies. The European accreditation earned last year opens a new opportunity for ESTDEV to find additional funding from European support funds," said Margus Gering, ESTDEV's regional head for Europe. 

ESTDEV is a state foundation established by the Ministry of Foreign Affairs in 2021 to coordinate and implement Estonian development cooperation activities and represent Estonia in international development cooperation initiatives. Approximately 75% of ESTDEV’s development cooperation budget goes to supporting Ukraine. Other sectoral priorities include strengthening democracy and the rule of law, promoting quality education and developing e-governance and cybersecurity in Estonia's strategic priority countries in Africa and the EU's Eastern Neighbourhood.