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May 20, 2025

The initiative will update ecosystem maps, analyze critical data, and offer strategic tools to enhance support for small and growing businesses.

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Donor funding plays a crucial role in advancing development goals across East Africa, not least in Ethiopia, Rwanda, and Kenya. These nations have made significant strides toward inclusive economic growth and improved infrastructure to enhance social impact, in part, due to the support of international donors, development agencies and philanthropic funds. However, as multiple organisations fund similar initiatives across these regions, questions arise about coherence, alignment, and potential duplication of efforts.

In the face of data paucity and indicator opaqueness, we aim to address a hypothesis: a lack of donor coherence is causing suboptimal allocation of resources. By ‘donor coherence’ we mean the degree of alignment between the objectives, processes, and priorities of various funding bodies, aiming to avoid redundancy and ensure that resources are used efficiently. Financial contributions should aim to nurture dynamic entrepreneurial environments while ensuring more effective use of public funds.

This report explores how donor coherence in Ethiopia, Rwanda, and Kenya impacts resource distribution across sectors, identifying potential overlaps and assessing the implications of these strategies. By assessing the activities funded and the thematic areas supported, we can gain insights into how donor coherence affects the overall impact of development assistance in East Africa.

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