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A stronger Ethiopian health system through performance-based financing

Ethiopia -

In 2015, Cordaid initiated a performance-based financing showcase project in the Borana zone, in close collaboration with the Oromia Regional Health Bureau and the Borana Zonal Health Department.

A doctor and a patient in a health centre in Ethiopia.
A health centre in the Jimma zone, Ethiopia. Image: Frank van Lierde/Cordaid

Initially, health services in this dryland area were rarely used, and services provided were of low quality. After three years, the project saw substantial improvement in the access to care, the quality of care, the reliability of data and the motivation of staff.

Based on these positive results, in July 2018 the project was scaled up to cover about 60% of the Borana Zone, while in October 2019 a second PBF project started in 13 districts of the Jimma zone of the Oromia region.

Since 2021, the PBF approach expanded to reach all 21 districts and 14 districts of the Jimma and Borana zones respectively. Both PBF projects are supported by the Embassy of the Kingdom of the Netherlands.