The Authority for Civil Society Organizations (ACSO) has announced a strategic shift toward Corporate Social Responsibility (CSR) and domestic resource mobilization as primary funding sources for Ethiopia’s civil society sector.
The move comes at a pivotal time, as Civil Society Organizations (CSOs) seek to transition from heavy reliance on foreign aid toward a more sustainable, self-reliant model grounded in domestic support — particularly from Ethiopia’s expanding private sector and local communities.
For decades, CSOs in Ethiopia have depended largely on international donors. However, evolving global dynamics and domestic economic changes have exposed the vulnerability of that model.
According to Fassikaw Molla, Deputy Director General of ACSO, foreign assistance remains important but can no longer serve as the sole pillar of the sector’s survival.
“We do not believe the civil society sector can shoulder its significant national responsibilities through foreign donations alone,” Fassikaw told Capital. “The global context is changing. True sustainability comes from looking inward — leveraging local capacity, mobilizing domestic resources, and engaging our business community strategically.”
To that end, the Authority is collaborating with the Ethiopian Policy Studies Institute on a comprehensive study to assess the country’s CSR potential. The research will examine how major corporations in sectors such as telecommunications, banking, mining, and manufacturing can systematically allocate a portion of their profits to social development initiatives through CSOs.
Currently, many Ethiopian companies engage in charitable activities, but these efforts are often fragmented and uncoordinated. ACSO aims to establish a structured legal and policy framework that formalizes relationships between businesses and civil society organizations. Under the proposed approach, companies investing in community projects through CSOs could benefit from tax incentives or public recognition.
Terefe Degeti, Executive Director of the Council of Ethiopian Civil Society Organizations, emphasized that Ethiopia’s growing private sector has the capacity to assume greater social responsibility.
“We have profitable banks, expanding factories, and mining companies extracting high-value resources,” he said. “As these entities operate within communities, they must also demonstrate commitment to those communities.”
He noted that even a small fraction — as little as 0.01 percent of profits from large companies — could generate substantial funding for organizations supporting the elderly, children, and other vulnerable groups.
A central pillar of the Authority’s new financial strategy is “localization.” ACSO is advocating for decision-making, leadership, and fund management to be decentralized to the community level. In line with this vision, the government is reviewing amendments to the existing Civil Society Organizations Proclamation to remove regulatory barriers that limit CSOs’ ability to generate their own income.
Under the proposed reforms, CSOs would be encouraged to operate as social enterprises — generating revenue through the sale of goods and services to fund their missions while maintaining their social objectives.
The Authority stressed that this shift toward self-reliance does not signal a rejection of international partnerships. Rather, financial independence would enable CSOs to engage foreign donors as strategic partners instead of dependent recipients.
“We must practice what we preach,” Terefe said. “To earn the trust of Ethiopian investors and local philanthropists, we must demonstrate full transparency and accountability. We are strengthening our internal codes of conduct and oversight systems to ensure that every birr raised domestically makes a tangible impact.”
The new initiatives were announced during a press conference ahead of the 5th National Civil Society Organizations Week, scheduled to take place from March 5–7, 2026.
Held under the theme “Self-Sufficiency for Sustainable Peace and Inclusive Development,” the event will serve as a platform to advance the localization and CSR agenda. It will feature panel discussions on the role of CSOs in the upcoming national elections, as well as exhibitions highlighting successful domestic fundraising models.
More than 100 organizations are expected to participate. In a departure from previous years, the event will also welcome representatives from various regional networks and the National Federation of Public Benefit Organizations of Kenya, who will share experiences with their Ethiopian counterparts.
As Ethiopia’s civil society sector redefines its financial foundation, the coming years may determine whether domestic resource mobilization can indeed become a durable pillar of sustainable development.
