Policy Updates

On March 27, 2024, Sida announced the cessation of its agreements with about 20 CSOs by the end of 2024.

The move is part of a broader shift towards a new ODA distribution model emphasizing a more open and competitive application process, slated to commence on January 1, 2025. This restructuring was a direct response to governmental mandates aiming to enhance the efficiency and reach of Swedish development assistance.

The abrupt end to these longstanding partnerships sparked a wave of concern and criticism among the affected organizations and their global partners. With a current budget of SEK1.8 billion (US$15 million), these strategic partnerships were a cornerstone of Sweden's development assistance, extending support to nearly 2,000 organizations worldwide. The collaborations spanned a diverse array of sectors, including labor unions, faith-based groups, environmental advocates, and human rights organizations, primarily targeting support in low- and middle-income nations.

Critics, including CONCORD Sweden, argued that the sudden shift jeopardizes the sustainability of critical development projects and undermines the implementation of ongoing initiatives. This, according to critics, not only threatens the continuity of vital programs but also risks the effective use of Swedish taxpayer contributions to global development.

On March 21, 2024, the EU announced a contribution of EUR268 million (USS$290 million) at the EU - LAC High-Level Event on Inclusive Human Development and Equitable Access to Health Products.

Commissioner for International Partnerships Jutta Uprilainen announced the investment, made in cooperation with France, Germany, Italy, Luxembourg, Spain, and Sweden. The finance aims to mobilize EUR1 billion (US$1 billion) to support access to basic social services and rights and increase the transparency and accountability of government agencies.

The contribution was made in line with broader :abbrEU - CELAC cooperation, which aims to mobilize over EUR45 billion (US$49 billion) from 2024-2027 to support the SDGs and other efforts in the region.

On March 20, 2024, the EU and the Belgian Council presidency announced a joint contribution of EUR14 million (US$15 million) for the African Medicines Agency and launched three global health partnership programs.

The support, announced at the high-level event on EU – AU partnership on Global Health for equitable access, comprised EUR10 million (US$11 million) from the Commission and EUR4 million (US$4 million) from Belgium. The support aims to advance the establishment of the African Medicines Agency, particularly as an end to strengthening vaccine production and health innovation.

In addition, the event marked the launch of three Team Europe initiatives on:

• Sustainable Health Security, which aims to increase PPR among African partner countries, with a specific focus on AMR and other infectious diseases, and will receive EUR128 million (US$129 million) from the 2021-2027 budget;
• Support to Public Health Institutes in Africa, which aims to bolster UHC and reduce health access inequalities and received an allocation of EUR50 million (US$54 million) from 2024-2027; and
• Digital Health, focusing on reducing health disparities and advancing UHC and PPR through technological and practical innovation, which received EUR87 million (US$94 million) from 2024-2027.

On 13 March 2024, Sweden announced a new agreement between Sida and the USAID, which is set to advance sustainable development initiatives, prioritizing local initiatives and engaging the private sector closely.

The agreement was officially sealed in Washington DC on 4 March by Sida's Director-General Jakob Granit and USAID Deputy Administrator Isobel Coleman.

The agreement, slated to span the next four years, introduces new focus areas including digitalization, cybersecurity, the enhancement of global public goods like food security, climate action, and the improvement of transparency and oversight in development.

On December 5, 2023, Sweden announced an additional SEK149 million (US$14 million) to address the escalating needs of the civilian population in Sudan amid ongoing armed conflict, which erupted in April and has severely impacted living conditions.

The additional funding brought Sweden's humanitarian assistance to Sudan in 2023 to SEK355 million (US$34 million). The assistance package is channeled through Sida and detailed the following allocations:

• OCHA and UNICEF: SEK89 million (US$9 million);
• Mercy Corps: SEK25 million (US$2 million). Mercy Corps is a humanitarian organization focused on food security. The funds are allocated to enhance the production capabilities and self-sufficiency of small-scale farmers, particularly women, and is expected to benefit 10,000 farmers; and
• UNHCR: SEK35 million (US$3 million) will support the OHCHR in its efforts to monitor and document human rights abuses in Sudan.

On September 20, 2023, the Swedish government presented its 2024 budget proposal to Parliament, which showed an approximately SEK56 billion (US$5.5 billion) allocation to ODA.

Additional costs covered by the budget encompass assessed contributions to the EU, MFA management costs, and in-donor refugee costs, which comprise 3% of the total budget with an 8% cap on the use of ODA to cover in-donor refugee costs.

Sweden has exceeded the UN DAC target of 0.7% ODA/GNI since 1975. However, in September 2022, Sweden's then newly-elected right-wing government announced that it was ending the country's commitment to achieve 1% of its ODA/GNI and set ODA at SEK56 billion (US$5.5 billion) annually for 2023-2025, which is projected as approximately 0.88% ODA/GNI.

The budget lacked detailed information on specific allocations, but rather outlined general policy priorities. Sweden's international development cooperation priorities remain the promotion of Agenda 2030; poverty reduction; health initiatives for the most vulnerable; support for democracy aid to human rights defenders and champions of democracy; expanded and streamlined climate assistance; and women’s and girls’ rights and opportunities, including improved SRHR.

The 2024 ODA budget is slated to emphasize counteracting irregular migration, increasing repatriation, and contributing effectively to voluntary returns, as well as addressing the root causes of migration.

Synergy between Sweden’s global trade, export promotion, climate, foreign, and ODA policies was another priority. Sweden named a single minister responsible for both development assistance and foreign trade. The government also emphasized the importance of promoting ODA effectiveness metrics in development cooperation.

Ukraine remained Sweden’s main ODA recipient and priority, dedicating SEK6 billion (US$540 million) to Ukraine from 2023 to 2027. The Swedish government adopted a reconstruction and reform cooperation strategy with Ukraine on July 17, 2023, which included humanitarian assistance, financial backing, reconstruction initiatives, and support for civil crisis response capabilities.

Global health remained a priority in the 2024 budget, with particular emphasis on the creation of societal conditions for good and equitable health for the most vulnerable. There was further emphasis on promoting health systems that are effective, sustainable, and resilient. Another area of focus included SRHR and improved preparedness and capacity to detect and manage outbreaks of pandemics, diseases, and other health threats. The budget emphasized that Sweden will continue its efforts to increase global vaccination coverage, including against COVID-19.

According to OECD data, Sweden’s total ODA to health in 2020 was US$594 million, making it the 9^th-largest DAC donor in absolute terms. Sweden’s multilateral ODA to health represented 43% of its total health ODA.

On August 17, 2023, Sweden unveiled its annual report on development assistance in global health and SRHR, which underscored Sweden's goal of promoting global health as one of its foremost development policy priorities.

Sweden's global health ODA totaled SEK6 billion (US$548 million) in 2022. Swedish ODA was allocated to enhance access to essential healthcare services, advance SRHR, and address the health implications of the COVID-19 pandemic.

Swedish Minister for International Development Cooperation and Trade Johan Forssell emphasized that Sweden considers the protection and advancement of public health to be not just a moral responsibility, but rather an investment driving both global economic advancement and safety. Forssell highlighted the dedication of the Swedish government to global health and SRHR through both its financial contributions and its international advocacy.

On August 15, 2023, Swedish Minister of International Development Cooperation and Trade Johan Forsell expressed support for the World Bank's recent pledge to withhold new funds from Uganda in light of Uganda's new anti-homosexuality law.

Critics have described the law as one of the harshest anti- LGBTQ+ measures in the world. Forsell stated that it was evident that no funding should be given to a state threatening LGBTQ+ individuals with the death penalty.

The minister highlighted that despite Sweden's lack of bilateral development cooperation with Uganda, the country supports a number of CSOs in Uganda, including those promoting LGBTQ+ rights.

On July 13, 2023, the Swedish government announced an SEK180 million (US$18 million) increase in its contributions to the WHO for 2023.

The funding was intended to support the WHO's vital work in addressing humanitarian and health crises in impoverished and conflict-ridden nations, as well as its global initiatives for sustainable access to water and sanitation management. The government also prioritized the strengthening of global preparedness against future health threats and pandemics.

Sweden facilitated the relocation of the WHO office for non-communicable diseases from Moscow to Copenhagen in early 2023. Sweden has also been instrumental in advocating for more sustainable financing for the WHO, encouraging other donor countries to similarly increase their contributions to the organization's budget.

On June 26, 2023, the Ministry for Foreign Affairs of Sweden unveiled a comprehensive humanitarian and recovery support package for Ukraine.

Valued at SEK380 million (US$35 million), the package aimed to address the pressing needs of the country, with a particular emphasis supporting CSOs.

The destruction caused by the Kakhovka dam's collapse on June 6, 2023, exacerbated the already dire situation in Ukraine. Minister for Foreign Trade and Development Johan Forssell underlined the necessity for aid providers to be prepared to assist civilians in distress. He foregrounded the funding's role in enabling partners to implement short- and long-term measures in the areas of greatest need.

Recognizing the valuable contributions of CSOs, the Swedish Government committed to providing SEK 25 million (US$2 million) to the Ukrainian Red Cross and supporting other organizations with SEK20 million (US$2 million) through Sida.

To address various urgent needs, Sweden also allocated funds to key entities involved in relief work:

• SEK25 million (US$2 million) was allocated to the International Committee of the Red Cross to provide healthcare, medicines, water, sanitation, and protection in inaccessible regions;
• SEK50 million (US$5 million) was allocated to the WFP for essential provisions such as food and water; and
• SEK50 million (US$5 million) was allocated to the UNHCR for shelter, legal advice, and psychosocial support in areas where humanitarian needs are most critical.

Additionally, the Swedish Government extended assistance for demining, flood response, and managing air traffic control to:

• The Swedish Civil Contingencies Agency, which received SEK50 million (US$5 million);
• UNDP, which received SEK103 million (US$10 million); and
• EUROCONTROL, which received SEK13 million (US$1 million).

Finally, the government also allocated SEK45 million (US$4 million) to the National Board of Health and Welfare for coordinating and fulfilling requests for medical supplies.

The additional support brought Sweden's total assistance to Ukraine to at SEK1.9 billion (U$S176 million) for humanitarian assistance, SEK750 million (US$70 million) for recovery and further development, and SEK316 million (US$29 million) for reform support since 2022.