Rethinking Localization in Ethiopia: Beyond Funding Transfers. By Bilen Asrat | EthioAfric Raising Consulting

In recent years, “localization” has become a buzzword across the development and humanitarian sectors in Ethiopia. Many international donors and organizations now speak of “shifting power to local actors,” “local ownership,” and “community-driven development.” Yet in practice, localization is too often reduced to one thing: transferring funds to local Civil Society Organizations (CSOs).

Let’s be clear: Localization is not just about money.

🔍 So, what does localization mean?

At its core, localization is about power, trust, and meaningful inclusion. It requires shifting not just resources, but also decision-making authority and space for local actors to lead, define, and shape solutions that reflect their realities.

In the Ethiopian context, this means:

• Listening to communities—not speaking for them
• Valuing indigenous knowledge systems, traditional conflict resolution mechanisms, and local governance structures
• Adapting interventions to local needs and priorities, rather than importing externally driven models
• Working with, not around, grassroots organizations, elders, youth associations, and women’s groups
• Embedding programs in local languages, cultures, and timelines

💰 Funding is only part of the picture—And it’s still not working

Ironically, even the fund transfer aspect of localization is far from fully implemented. Many INGOs and donors still want to sit in the driver’s seat, deciding what to do and what not to do, often without adequately consulting or trusting local actors.

Worse, a significant portion of funding continues to be lost to overhead. Most of the money goes toward administrative and coordination costs (ANCRA) by INGOs and international development partners, sometimes exceeding total budgets. In many cases, expat fees and global technical assistance cost more than the actual subgrants allocated to local implementing organizations.

How can we talk about shifting power when the money, decisions, and voices remain centralized?

🌱 Localization is about ownership, not outsourcing

True localization is not about delegation—it’s about enabling and trusting local systems to lead. It means investing in capacity, relationships, and long-term systems that empower local actors to identify and implement their priorities.

It allows communities to see themselves as agents, not just beneficiaries. Localization is not a technical fix—it’s a cultural and political shift in how we value leadership, context, and lived expertise.

🧭 What does this mean for donors and INGOs?

If we want localization to succeed in Ethiopia, we must move beyond transactional relationships and toward transformative partnerships. That includes asking:

• Are we co-creating programs or just subcontracting them?
• Are we supporting core capacities, not just project deliverables?
• Are we willing to trust local leadership, even when it challenges our assumptions?
• Are we prepared to rethink our overhead-heavy models and channel more to the frontlines?

🌍 A Call to Center Local Leadership

At EthioAfric Raising Consulting, we believe that localization isn’t a trend, it’s a necessity. In a country as complex, diverse, and resilient as Ethiopia, lasting change cannot be imposed. It must be rooted in local knowledge, driven by community priorities, and led by the people themselves.

As Ethiopia navigates recovery, reconciliation, and civic transformation, local leadership is not optional; it’s foundational. Let’s make localization mean what it should:

Local voice. Local value. Local vision.

🔖 To learn more about our work and approach to locally led development, visit www.ethioafricraising.com

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