Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
The official entrance age to pre-primary education is 4 years old. In 2024, the net enrolment rate for pre-primary education (both sexes) was 41%.
Governance
The education sector operates within a decentralised system of government, encompassing both governance and financing. The Federal Ministry of Education (MoE) is responsible for formulating policy and establishing guidelines, while regional governments oversee service delivery. Pre-primary education expenditure is aggregated with primary education, which is supervised and funded by the Federal Ministry of Education, and implemented within regions through Regional Education Bureaus and Woreda Education Offices. Pre-primary education has traditionally targeted children aged 4-6, before they officially enter Grade 1 at age 7.
The 2023 National Early Childhood Development and Education Policy Framework aims for pre-primary education to be budgeted separately. A reform of education expenditure allocation is underway to restructure government expenditure to reallocate spending from tertiary to general education and expand pre-primary provision.
Tuition-free status
Government provision for pre-primary education is mainly through the O-Class, a formal, publicly provided, fee-free reception class for 6-year-olds (the year before primary school) attached to government primary schools.
1. Education resources to subnational governments
Public primary schools, which include O-Classes for 6-year-olds, receive funding from the federal government in the form of block grants, which are distributed across regions based on a formula that assesses revenue-raising capacity, expenditure needs, population, development levels, employment, and poverty across regions.
Whereas block grants represent the core budget that regions and woredas use to deliver services, in the case of pre-primary education (O-Class), there is a reported lack of funds and a specific budget line available to deliver the programme via the core block grant.
2. Education resources to institutions
O-Class
The O-Class, a reception class for 6-year-olds (the year before primary school) attached to government primary schools has been the main driver for expanding pre-primary education access in Ethiopia since the country’s 2010 early childhood education reform. Before 2010, pre-primary education had not been integrated within public education and was dominated by non-state provision, with no government funding allocated to the sector. The 2010 National Policy Framework for Early Childhood Care and Education formally promoted the introduction and expansion of the government-provided, fee-free ‘O-Class’ in all rural and urban primary schools, expanding services to under-served areas, particularly for the country’s marginalized urban poor and rural children.
However, the expansion of the O-Class has been promoted with no dedicated budget for pre-primary education, with regions instead relying on local contributions and enrolment-based capitation grants. The main financing source for the O-Class are donor-funded school grants (distributed directly to schools as a ‘top up’ to the core school grant based on enrolment), which were introduced in 2016-17 through the General Education Quality Improvement Program (GEQIP). Donor support has mainly been provided through school grants; training of O-Class teachers on age-appropriate, play-based teaching methodology; and developing and implementing school inspection standards.
While block grants are the main government funding source for primary schools, there is no dedicated budget line for pre-primary O-Classes within public primary schools.
The 2023 National Early Childhood Development and Education Policy Framework and 2020/21–2024/25 Education Sector Development Programme VI both aim to increase public financing towards pre-primary education, with an emphasis on equitable resource allocation and support to faith- and community-based organizations engaged in pre-primary provision.
3. Education resources to students and families
There are no financial support mechanisms in the form of government subsidies or vouchers to support students and families in accessing pre-primary education.
4. Social policies and family support programmes
Budgets and expenditures related to social protection are spread across multiple budget lines of various ministries and agencies, with no centralised management information system for social protection. No social protection programme includes a dedicated pre-primary education component.
