Policy Updates

On October 17, 2024, the EIB and KCB Bank Kenya announced EUR230 million (US$254 million) to support small and medium enterprises, as well as youth and women at Global Gateway Team Europe’s IYBA initiative.

The EIB provided a EUR115 million (US$117 million) credit line to be matched by Kenya. This is the largest EIB financing support to businesses in Kenya so far. The Gates Foundation will provide technical assistance and help women with low incomes access finance through digital technology and risk sharing.

The IYBA initiative, supported by the EU, its Member States, and financial institutions, is meant to help create bankable and sustainable businesses, which in turn will create jobs. The initiative provides capital for startups and businesses at their early stages, helps build capacity, and provides technical assistance. Since 2021, IYBA has supported thousands of micro, small, and medium-sized businesses across Sub-Saharan Africa.

Out of EUR230 million (US$ 254 million), EUR30 million (US$33 million) will be allocated to women-led or owned microenterprises, EUR100 million (US$111 million) to capital and new investments for SMEs targeting women-owned businesses. EUR100 million (US$111 million) will focus on businesses led or founded by young entrepreneurs, or employing at least 40% young people.

On October 16, 2024, Canadian Minister of International Development Ahmed Hussen announced CAD23 million (US$17 million) for the Aequitas Impact Investment Fund and over CAD6 million (US$4 million) for the fund’s Technical Assistance Facility to improve access to financial services for underserved global populations.

The 12-year project is in partnership with DID. The Aequitas Impact Investment Fund invests in small-scale financial institutions in LIC and LMICs across Africa, Asia, Eastern Europe, and Latin America to help them improve the availability of financial products, such as bank accounts, loans, and insurance.

The project will support entrepreneurs who run micro, small, and medium-sized businesses, including women, youth and small-scale farmers.

On October 7, 2024, the Norwegian government presented its state budget for 2025, which includes an ODA budget of NOK52.9 billion (US$4.8 billion).

This amount remains largely consistent with the 2024 allocation, representing 0.92% of Norway's GNI, below the country’s longstanding target of 1%. Despite this, the government has reaffirmed its commitment to increasing ODA in future years, with the goal of eventually reaching the 1% target.

In presenting the budget, Norway’s Minister of International Development Anne Beathe Tvinnereim highlighted the importance of the 2025 allocations, emphasizing that the government is providing a robust budget designed to address critical global challenges. Beyond targeting immediate needs like poverty reduction and development, the budget also aims to foster trust and strengthen systems capable of addressing long-term challenges.

Key focus areas:

The 2025 development budget places particular emphasis on humanitarian assistance, climate action, business development, multilateral institutions, debt relief and refugee-related expenses in Norway (which will increase by 8%). However, certain areas will see reductions, including:

• A 22% cut in support for refugees outside of Norway.
• A 6% reduction in funding for peace efforts.
• A 3.9% decrease in civil society funding.

Despite some cuts, several areas will receive increased funding:

• Development assistance to Palestine will increase by NOK280 million (US$26 million).
• Humanitarian assistance will rise by NOK300 million (US$27 million).
• Climate adaptation and food security funding will grow by NOK380 million (US$35 million).

Crisis areas:

Ukraine remains Norway's top priority in light of the ongoing conflict with Russia. The Nansen Program for Ukraine will see a significant increase in funding, with the budget rising from NOK75 billion (US$6.8 billion) to NOK134.5 billion (US$12.3 billion). The program's duration has also been extended from 2027-2030.

The budget allocated substantial humanitarian assistance to Gaza, addressing the severe needs resulting from the ongoing conflict. Similarly, additional resources are directed towards Sudan, where escalating hunger and humanitarian crises are pressing concerns.

Global health:

Norway’s 2025 budget emphasizes global health cooperation and preparedness, with a focus on enhancing the world’s ability to prevent, detect, and respond to infectious disease threats and antimicrobial resistance. Key initiatives include:

• Preventing infectious diseases and reducing child and maternal mortality.
• Strengthening SRHR.
• Expanding UHC.
• Enhancing national healthcare systems, particularly in addressing climate-related health issues, such as the spread of infectious diseases.

While the allocation for health in 2025 stands at NOK3.6 billion (US$327 million), reflecting a NOK103 million (US$9 million) decrease from 2024, this aligns with the government’s prioritization of other areas like humanitarian assistance and climate adaptation. Norway remains committed to long-term global health partnerships, including a reallocated contribution of NOK20 million (US$2 million) to UNAIDS.

On October 7, 2024, Norwegian CSOs and political leaders expressed strong concerns about the government’s 2025 budget proposal on ODA.

Despite a slight increase in overall ODA spending, the government continues to fall short of the agreed 1% of GNI for ODA, which has drawn significant criticism from various quarters. The government plans to allocate NOK52.9 billion (US$4.8 billion) to ODA, which corresponds to 0.92% of GNI.

Lan Marie Berg from the Green Party criticized the government, stating, that Norway has profited from the war in Ukraine due to rising oil and gas revenues, and should contribute more to humanitarian efforts. Henriette Westhrin of Save the Children also expressed shock at the cuts, especially given the growing global crises.

Dagfinn Høybråten from Norwegian Church Aid and Hjalmar Bø of Digni pointed out that over NOK4 billion (US$343 million) of the budget is being used domestically for refugee reception, particularly for Ukrainians. They stated that this should not come at the expense of international development assistance meant for the world's poorest. Jan Egeland from the Norwegian Refugee Council echoes this sentiment, highlighting that the government's actions contradict its claims of international solidarity.

The SV and The Green Party strongly opposed the cuts, with SV's Kari Elisabeth Kaski calling them unworthy of a wealthy nation like Norway. Both parties emphasize that the reductions are coming when the world is facing severe humanitarian crises.

Dag-Inge Ulstein, from the Christian Democratic Party and former Minister of International Development, criticizes the budget for prioritizing domestic refugee costs over international development assistance. Ulstein also condemns the NOK150 million (US$13 million) cut to educational development assistance, arguing that it continues a trend that has seen over NOK1.1 billion (US$94 million) reduction in the funding to education since his tenure. He emphasized that these cuts could have been avoided if the government had met its own 1% development assistance target. This is also underlined by the Conservative Party, which says that Norway, previously a leader in education assistance, risks setting a negative example for other donor countries.

The Liberal Party noted the global refugee crisis and the need for greater international support. They also criticized the significant cut to education, pointing out that this leaves hundreds of thousands of children without access to schooling and opportunities for a better future. However, the party praises the increased funding for climate adaptation but argues that more could be done, particularly through mechanisms like the Climate Investment Fund.

On October 7, 2024, the Deputy Minister of Foreign Affairs and International Cooperation Edmondo Cirielli spoke on behalf of Prime Minister Giorgia Meloni at the first edition of the Hamburg Conference on Sustainability, a high-level event that addressed global challenges related to sustainability.

Cirielli highlighted Italy's commitment to promoting youth entrepreneurship through the Mattei Plan for Africa, which aims to foster sustainable and inclusive economic growth.

Cirielli presented Italy's Digital Flagship with West Africa-Bankable Project Origination initiative, managed by UNDP and supported by the AICS. The project, carried out in collaboration with UNDP, aimed at the creation of digital ecosystems in Senegal, Ghana, Côte d'Ivoire and Mozambique. Furthermore, Cirielli highlighted the AI Hub for Sustainable Development initiative, a significant project launched under the Italian G7 presidency. This initiative aims to strengthen local AI ecosystems in Africa, with a focus on crucial sectors such as agriculture, health, and energy.

Regarding funding access for youth enterprises, Cirielli highlighted Italian Cooperation's strategic partnership with the AfDB, which has launched innovative co-financing tools in recent months.

On September 26, 2024, Australia’s science agency, CSIRO, called for applications under an initiative to improve agriculture in the Indo–Pacific region.

The AI-ENGAGE initiative aims to use robotics and sensors to help empower farmers and transform agricultural methods to increase resilience and yield.

Following a commitment by Quad leaders to support joint research in agricultural innovation, CSIRO will work with Japan’s Science and Technology Agency, the Indian Council of Agricultural Research, and the US National Science Foundation.

Under AI-ENGAGE, Australian researchers can apply to host international researchers in Australia. Potential areas include robotics, supply chain management, crop planning and monitoring, and agricultural management and risk information. Research teams need to contain researchers from at least three of the Quad countries.

On September 19, 2024, the US pledged an additional US$80 million in funding to Malawi, Tanzania, and Zambia as part of the Feed The Future program which supports agricultural growth and resilient food systems using the Feed the Future Accelerator.

This is in response to the needs created by Russia's invasion of Ukraine as well as the impact of recent droughts and macroeconomic shocks.

The Accelerator will support the growth of a regional breadbasket by combining the region's fertile land, its diverse farming systems, and reform-minded governments. This aims to stimulate economic growth and simultaneously improve the resilience of food producers.

On September 17, 2024, the Dutch government announced a EUR3.6 billion (US$3.9 billion) total budget for the Ministry of Foreign Trade and Development Assistance and saw EUR300 million (US$300 million) in cuts from the 2025 development budget.

The funding cuts, outlined in the May 2024 Coalition agreement, includes reversing planned cuts to the Dutch diplomatic network from 22% to 10%, with the shortfall financed from the development budget. Key areas like water management, food security, and health remain prioritized.

A new sub-article for Foreign Trade consolidates support for Ukraine, allocating EUR252 million (US$274 million) to humanitarian and infrastructure support and EUR60 million (US$65 million) for humanitarian demining in 2025.

Additionally, the new government will no longer tie the development budget to the size of the Dutch economy, ending the practice of allocating 0.7% of GNI, as per OECD guidelines.

From September 6-13, 2024, Japan signed agreements to provide JPY900 million (US$6 million) in food assistance to the Central African Republic, Liberia, and Malawi through WFP, reinforcing its commitment to addressing food crises in Africa.

The funding will be allocated as follows:

• Central African Republic: JPY200 million (US$1 million) to alleviate food shortages due to ongoing humanitarian crises and global price hikes, assisting 2.5 million people;
• Liberia: JPY400 million (US$3 million) to improve food security and nutrition, addressing the country’s heavy reliance on rice imports and underdeveloped agricultural infrastructure; and
• Malawi: JPY300 million (US$2 million) to address food insecurity caused by Cyclone Freddy and El Niño-related droughts, targeting vulnerable populations.

These contributions align with Japan’s pledges from TICAD 8 to support sustainable agriculture and food security.

On September 5, 2024, UK Minister for Africa Lord Ray Collins announced that the UK would be making a GBP25 million (US$30 million) investment in the African agri-sector to boost production and strengthen food security in the face of climate threats.

The minister announced the funding during his keynote speech at the AFSF in Rwanda. The funding will be allocated to AgDevCo, a UK-based African agribusiness investor. The funds will go towards its new US$50 million facility called AgDevCo Ventures. The new facility will focus on supporting small African agricultural enterprises, emphasizing African-owned and managed businesses.

The funding is expected to result in an increase in income of GBP128 million (US$153 million) for recipients by 2036.