Policy Updates

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 14-15, 2024, the C7 summit was held at the UN FAO headquarters in Rome, Italy, organized by the Italian Civil Society Coalition that led, coordinated, and moderated the C7 2024 process.

Approximately 400 global representatives took part in the event, as well as international decision-makers, including FAO Director-General Qu Dongyu, Italian G7 sherpa Ambassador Elisabetta Belloni, Cardinal, President of the Italian Episcopal Conference, Pope’s envoy for the Russian-Ukrainian conflict Matteo Maria Zuppi, and Director of the UN SDG Action Campaign Marina Ponti.

The official C7 communiqué that listed the international civil society recommendation to the G7’s Leaders around seven key issues was released at the event, which included:

• Economic justice and transformation;
• Climate, energy transformation, and environmental justice;
• Global health;
• Principled humanitarian assistance;
• Peace, common security, and nuclear disarmament;
• Human mobility and migration; and
• Food justice and food systems transformation.

On May 10, 2024, USAID joined the AU Commissioner and 14 other partners in a statement of support for the African Fertilizer and Soil Health Action Plan at an AU-led soil health summit.

The US also announced US$40 million for the Space in Place approach, which is meant to support farmers with geospatial data and knowledge to ensure the best use of fertilizer for more nutritious foods.

Others joining the statement included the ADB, Bill & Melinda Gates Foundation, France, the World Bank, France, Canada, the EU, Germany, the Netherlands, the Rockefeller Foundation, Germany, and the UK. Commitments included improved investment policies, more access to fertilizers, enhancing soil inputs and interventions, and building capacity for soil health and fertilizer management.

On April 17, 2024, the European Commission's Directorate-General for International Partnerships published the 6^th EU Aid for Trade Progress Report, finding that the bloc continues to be the largest provider of aid for trade at 42% of global 'aid for trade' in 2021.

At EUR18.6 billion (US$19.8 billion) EU 'aid for trade' decreased 26%, or EUR4.9 billion (US$5.2 billion), between 2020-2021, following downward trends among other donor organizations for the same year.

55% of spending in 2021 prioritized production capacity in partner countries, while trade-related infrastructure remained stable around 42% of funding. By region, 46% of spending supported partner countries in Africa, continuing an upward trend from 2014.

34% of EU 'aid for trade' in 2021 supported gender equality and WEE as a significant objective, but only 1% as a principal objective. 2021 volumes returned to just below pre-COVID-19 pandemic levels, at EUR6.6 billion (US$7 billion).

Agricultural 'aid for trade' has fluctuated since 2017. In 2021, support for agriculture decreased 37% from a high of EUR4.5 billion (US$4.8 billion) in 2020 and 23% from pre-pandemic levels.

The EU's climate-related 'aid for trade' decreased 15% in 2021 to EUR9.7 billion (US$10.3 billion), driven by decreases in funding for projects related to adaptation alone and both mitigation and adaptation. Funding for mitigation-related projects remained stable from 2019-2021.

On April 14, 2024, the C7 published a statement ahead of the G7 Foreign Ministers' Meeting in Capri from April 17-19, 2024, where the group called on the foreign ministers to take concrete action to promote human rights as well as the common interests of humanity and the planet.

The C7 advocated that the G7 ministers reaffirm their commitment to developing long-term peace-building strategies that address persistent structural challenges at the basis of conflicts, ensure food security even in fragile settings, and address a profound transformation of food systems. The group also called upon their governmental counterparts to ensure safe and regular migration channels and commit to protecting migrant rights.

On March 12, 2024, Commissioner for International Partnerships Jutta Urpilainen announced a battery of initiatives to support the EU - Cambodia relationship.

Two of these initiatives included Team Europe programs intended to mobilize EUR1.1 billion (US$1.1 billion) and EUR400 million (US$432 million) for green agriculture and factories, respectively. Within these initiatives, focuses included green energy and decent jobs.

Urpilainen also announced four new collaborations between the EU and Cambodia, worth EUR79 million (US$86 million), with sectoral foci including:

• Agriculture, specifically sustainable farming practices that avoid deforestation;
• Sustainable energy in the production of textiles and garments;
• Digital skills, STEM education, and research; and
• Economic and trade development, specifically addressing challenges specific to Cambodia and increasing competitiveness.

On March 6, 2024, the EU announced EUR228 million (US$236 million) in support for projects in Uganda during a high-level business meeting.

With a primary focus on business and economic development, the initiatives also touched on topics including housing, human rights, digital infrastructure, gender equality, and agriculture:

• EUR40 million (US$43 million) was provided for the "Investing in Young Women-Led Entrepreneurs Business in Africa," which was reported as an effort to increase women's economic empowerment in partners across SSA, though specific partner countries were not listed in the press release;
• EUR50 million (US$54 million) was loaned to Uganda with the aim of increasing youth and women's employment while increasing access to jobs in sustainability;
• The EIB announced an EUR25 million (US$27 million) loan for the development of SMEs and aimed for 50% of support to benefit women-led businesses;
• EUR5 million (US$5 million) was also allocated to build awareness and advocacy surrounding human rights abuses in business;
• The EIB loaned EUR25 million (US$27 million) for over 500 telecommunications towers to be built throughout Uganda, with the aim of increasing access to digital technologies;
• The EIB loaned EUR50 million (US$54 million) to the Centenary Rural Development Bank to support women entrepreneurs in small businesses; and
• EUR 12 million (US$13 million) was allocated to both the START Facility and the Agricultural Business Initiative in Uganda to support climate resilience and economic development among agrarian populations.

On February 9, 2024, the EIB and Mauritania finalized an EUR20 million (US$22 million) loan to support SMEs with a focus on empowering women and young people in the labor market.

Accompanied by a visit of Commission President Ursula von der Leyen to Mauritania, the agreement was facilitated by the EU's partnership with the OACPS. The loan will be managed by Mauritania's BCI., with the following priorities:

• 50% or more allocated to youth training and employment;
• 40% to women's economic empowerment; and
• Increased investments in renewable energy and sustainable agriculture, among others.

The agreement also included the possibility of unlocking an additional EUR5 million (US$5 million).

On February 9, 2024, Spanish Prime Minister Pedro Sánchez visited Mauritania with European Commission President Ursula von der Leyen to strengthen development cooperation programs and human security in the Sahel region, green energy facilities, and migratory regulations.

Sánchez used the trip to sign the new Partnership Agreement Framework 2024-2027 between Spain and Mauritania. This new agreement, which accounts for an overall ODA budget of EUR60 million (US$64 million) to be disbursed during the upcoming four years, will be focused on the following areas:

• Fostering rural development;
• Strengthening public health systems;
• Improving food security and resilience of rural populations;
• Contributing to a human rights approach; and
• Facilitating national strategies implemented at the regional level in the Sahel.

Mauritania is among Spain’s top development partner countries. AECID owns a regional office in its capital, Nouakchott.

On November 11, 2023, the Commission of the EU announced that the Parliament and Council of the EU had reached agreement on the 2024 budget.

Against the backdrop of the midterm review of the bloc's MFF, the 2024 budget included commitments of EUR189.4 billion (US$204.7 billion), a slight increase over the EUR186.6 billion (US$201.7 billion) budget for 2023.

Heading 6: Neighborhood and the World fell to EUR16.2 billion (US$17.5 billion) from EUR17.2 billion (US$18.6 billion) in 2023, a 5% decrease. Notable changes included:

• Humanitarian assistance increased by EUR100 million (US$108 million) to EUR1.9 billion (US$2.1 billion); and
• NDICI-Global Europe fell EUR800 million (US$864 million) to EUR11.5 billion (US$12.4 billion), emphasizing spending priorities of reducing drivers of migration.