Policy Updates

On November 7, 2024, Canada announced a total of CAD231 million (US$166 million) to support a series of flagship initiatives for peace and security in Africa, as well as building stronger and mutually beneficial partnerships by supporting economic empowerment, climate change action, and gender equality.

The funding was announced by Canadian Minister of Foreign Affairs, Minister of International Development, and Minister of International Trade and Economic Development on the margins of the Canada-African Union Commission High-Level Dialogue in Toronto, Ontario.

Canadian Minister of International Development Ahmed Hussen announced nearly CAD177 million (US$127 million) in funding to advance women’s and youth’s economic and social empowerment, support climate-change adaptation, and skills enhancement through the following projects:

• Supporting the UPSNJP - CAD75 million (US$54 million);
• Leading on funding the Renewed Women's Voice and Leadership in Crisis- and Conflict-affected Contexts - CAD25 million (US$18 million);
• Advancing women and youth’s economic and social empowerment in Senegal - CAD20 million (US$14 million);
• Backing the Climate Resilience through Empowering Women project - CAD15 million (US$11 million);
• Providing resources to AWBG - CAD14 million (US$10 million);
• Contributing to the United Nations Multi-Donor Trust Fund for Kenya - CAD10 million (US$7 million);
• Contributing to FIRST - CAD10 million (US$7 million);
• Strengthening the South Africa Skills Enhancement Program - CAD5 million (US$4 million); and
• Supporting Morocco's WESE - CAD2 million (US$1 million).

Hussen also announced initiatives to strengthening partnership to reduce poverty, provide humanitarian assistance, support economic development, and empowering youth by:

• Creating a new Africa trade and development program at GAC which will support development initiatives that contribute to food security, job creation, gender equality, and environmental sustainability; and
• Enhancing and expanding education and skills training programming to harness economic empowerment.

Additionally, Canadian Minister of Foreign Affairs Mélanie Joly announced CAD54 million (US$39 million) in funding for flagship initiatives and projects in the following key focus areas: peace and security, good governance, strengthened people-to-people ties, and enhancing Canada’s diplomatic footprint. This includes by:

• Supporting youth and women in peace processes;
• Supporting community-led conflict-prevention in Darfur and civilian-led political process throughout Sudan;
• Investing in counterterrorism capacity and threat resilience;
• Working to prevent violent extremism and support SGBV;
• Naming a Special Envoy for Africa and for the Sahel; and
• Formalizing Canada’s relationship with the AU Commission through a new memorandum of understanding.

On November 6, 2024, Canada’s Minister of International Development Ahmed Hussen announced CAD10 million (US$7 million) to support industry-relevant skills training for young people in Egypt’s agribusiness sector.

The funding will support CICan to work with local partners and the Egyptian Ministry of Education and Technical Education to support over 20,000 students with technical training, internships, and career counselling. The project will set up an innovative learning hub to help youth gain climate-smart skills and join the agribusiness industry.

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 July 16, 2024, Canadian Minister of International Development Ahmed Hussen announced CAD41 million (US$30 million) in funding to Guatemala, Honduras, and El Salvador, including CAD36 million (US$26 million) in development funding and more than CAD5 million (US$4 million) in humanitarian funding to support gender equality, economic empowerment, reproductive health, family planning, and health services.

The funding included:

• CAD11 million (US$8 million) to the Sabores de Honduras: Empowering Women and Youths in Coffee and Honey Value Chains project;
• CAD6 million (US$4 million) to the Tula Foundation’s Empowering Indigenous Adolescents and Women for Equitable SRHR in Guatemala project to reduce the rates of teenage pregnancy and maternal mortality among the Indigenous population;
• CAD5 million (US$4 million) for the Inclusive Economic Development project to increase the economic empowerment of women and youths in Guatemala;
• CAD5 million (US$4 million) for the Justice, Governance and Fight Against Impunity in Honduras project to increase access to justice for women and other vulnerable populations;
• CAD5 million (US$4 million) for the Improving Livestock Sustainability and Climate Adaptation project to empower members of cattle ranching families, particularly women, youths, and Indigenous Peoples;
• CAD4 million (US$3 million) for the Feminist Partnerships to Strengthen the Agenda for Gender Equality project to improve responses to threats against women’s rights and gender equality, particularly in El Salvador, Guatemala, and Honduras; and
• CAD5 million (US$4 million) in humanitarian assistance to provide emergency food assistance, health, and protection services to the most vulnerable people in the region.

On June 14, 2024, the second day of the G7 Summit, Canadian Prime Minister Justin Trudeau announced nearly CAD687 million (US$501 million) to strengthen sustainable agricultural, climate resiliency, and foster gender equality in low- and middle-income countries.

Within the funding was CAD200 million (US$146 million) to IFAD, including:

• CAD100 million (US$73 million) to reduce poverty and food insecurity while strengthening climate resilience, with a focus on poor, vulnerable, and rural communities; and
• CAD100 million (US$73 million) as a repayable contribution to IFAD’s Private Sector Financing Programme to support investments in the agricultural sector in low- and middle-income countries, especially in the Americas, Sub-Saharan Africa, and Asia.

Canada also announced new funding for the Indo-Pacific region, which is home to the largest number of climate-vulnerable people in the world. Funding included:

• CAD360 million (US$262 million) in repayable contributions to the ADB to establish the Canadian Climate and Nature Fund for the Private Sector in Asia to mobilize private capital toward inclusive climate change mitigation and adaptation projects; and
• CAD7 million (US$5 million) through the IDRC to build on Canada’s existing partnership with the UK to expand the IDRC’s AI for Development program for responsible AI innovation and capacity building in the Indo-Pacific.

Lastly, Canada announced new funding to advance gender equality and the empowerment of women, girls, and LGBTQI+ people, including:

• CAD100 million (US$73 million) in the International Finance Corporation’s Facility for Gender Equality, Resilience, Opportunity, and Inclusion Worldwide, which is expected to mobilize an estimated CAD470 million (US$342 million) in private capital for investments that empower women and promote gender inclusion; and
• CAD20 million (US$15 million) to TradeMark Africa and the Centre for International Studies and Cooperation to help eliminate the gender-based barriers that prevent women from fully participating in opportunities afforded by the African Continental Free Trade Area.

On June 7, 2024, Canada’s IDRC announced CAD23 million (US$17 million) to support inclusive and sustainable aquaculture food systems to address climate change and food insecurity in Southeast Asia and the Pacific region.

The IDRC partnered with the Canadian government to launch AQUADAPT, a four-year project to improve small-scale aquaculture’s climate productivity and sustainability. The partnership aims to develop nature-based solutions to sustainably manage aquatic ecosystems and support robust nutritious systems, quality jobs, and resilient food production in a changing climate. AQUADAPT will include 11 research alliances and 35 institutions across Southeast Asia and the Pacific.

On May 29, 2024, the IRPP urged Canada to pivot its Indo-Pacific Strategy to focus on strengthening relationships with Viet Nam to support efforts in sustainable climate, agriculture, and water management.

Canada’s CAD2.3 billion (US$1.7 billion) Indo-Pacific investment, introduced in November 2022, focuses on economic security, for which Viet Nam is regarded as a regional success story. Viet Nam is the second-fastest growing economy in Asia, but faces ongoing challenges including water shortages, unsustainable development practices, and climate change.

Given Canada’s expertise in agri-tech, clean technology innovation, and freshwater management, the IRPP encouraged the Canadian government to use its strengths to be a more active and reliable partner to Viet Nam. It urged Canada to invest in Viet Nam’s water sector, which needs up to US$2.7 billion to reach its ambitious target of building a clean and resilient water supply by 2050. The IRPP also proposed use of Canadian agri-tech expertise to support low-carbon agricultural practices and help farmers adapt to climate change.

On May 23-25, 2024, the G7 Ministers of Finance met at a summit in Stresa, Italy, where the ministers voiced support for contributions to the IDA, WHO, Gavi, and the Global Fund in the resulting communiqué.

The G7 ministers supported efforts towards a successful 21^st replenishment of the IDA by the end of 2024 through an ambitious policy and financing package. Notably, they did not give a concrete signal that the critical US$100 billion threshold requested by the World Bank will be crossed, nor any indication of the US$120 billion expected by African leaders.

The ministers reaffirmed their dedication to strengthening the governance and finance of the global health architecture and voiced support for refinancing processes of several GHIs, such as Gavi, the Vaccine Alliance, the WHO, and the Global Fund, and expressed support for the Pandemic Fund. The communiqué called on the donor community to coordinate efforts and increase investments in global health in line with their capacities to ensure sustainable funding and maximize the impact of available resources.

Following the summit, the C7 pointed out the G7's lack of ambition and financial commitment to international development, including climate adaptation. International civil society organizations criticized the lack of any reference to allocating SDRs to global solidarity.

On May 22, 2024, Canada’s IRPP released a field study on the impact of developing legislative solutions to address pressing human rights and climate change issues in global supply chains, without consulting affected local producers and workers in LMICs and reported strong sentiments against exclusionary policy practice

The study showed that those most affected are given limited input in developing new laws and standards by donor countries, which also creates trade barriers. In many cases, local producers uphold strict sustainability standards and have multiple certifications, but do not feel they have been adequately consulted in donor countries’ development of the conditions and regulations they face, which hinders production and local economic growth.

The IRPP called on Canada to be a leader in addressing concerns raised by LMIC producers and showcasing its commitment to ethical standards and responsible global business practices. Specifically, the IRPP asserted that Canada’s child and forced labor act falls short of addressing the evolving challenges in global supply chains.

The think tank made several policy recommendations for Canada, including broadening the scope of current legislation beyond child and slave labor to address a wider array of human rights and environmental issues and allocating a dedicated fund for educational and training programs for producers in LMICs.

On May 16, 2014, Canadian Minister of International Development Ahmed Hussen concluded a trip to Ethiopia and Tanzania, where he announced nearly CAD195 million (US$143 million) to several development projects focused on education, SRHR, climate, peace, and security.

The funding included:

• CAD65 million (US$48 million) to UNFPA to implement the Protecting the Dignity and Rights of Women and Girls project in Ethiopia, which will support family planning services and prevention and response to SGBV;
• CAD30 million (US$22 million) to the International Finance Facility for Education to implement a new financing mechanism for global education, which will support lower-middle income countries to fund quality education;
• CAD25 million (US$18 million) to ACELI Africa to implement the Agri - SME Catalytic Financing Mechanism, helping high-impact agricultural SMEs and promoting economic growth and food security;
• CAD21 million (US$15 million) to CARE Canada for the Her Resilience, Our Planet project, which promotes climate-resilient agriculture and supports the empowerment of women to address climate change;
• CAD20 million (US$15 million) to the [[AU] to help implement its 2063 agenda and strategic plan to advance sustainable and inclusive development;
• CAD15 million (US$11 million) to UNICEF’s Improving Adolescent SRHR in Tanzania initiative, to enhance access to gender-responsive SRHR information and services for adolescents; and,
• CAD14 million (US$10 million) to the UNDP’s demobilization and reintegration project in Ethiopia.