Policy Updates

On August 4, 2025, JICA announced a US$6 million loan agreement with Thu Dau Mot Water Joint Stock Company to expand the Bau Bang Water Supply System in Vietnam.

The loan, co-financed by the ADB, will fund the construction of a new water treatment plant and an associated pipeline. The project aims to improve the urban sanitation environment and support sustainable economic growth in Bau Bang Hamlet, Ho Chi Minh City. The initiative contributes to SDG 6 (Clean water and sanitation) and 17 (Partnerships for the goals).

On August 4, 2025, the Gates Foundation announced a US$2.5 billion commitment through 2030 to accelerate R&D focused on women’s health, this pledge comes as many donor governments, including the US, are reducing their ODA budgets, placing a greater emphasis on private philanthropy to fill funding gaps.

The funding aims to address chronic underinvestment in the sector, noting that only 1% of healthcare research is for female-specific conditions beyond oncology. The investment will support over 40 innovations across five priority areas:

• Obstetric care and maternal immunization;
• Maternal health and nutrition;
• Gynecological and menstrual health;
• Contraceptive innovation; and
• Sexually transmitted infections.

The foundation urged governments, philanthropists, and the private sector to co-invest to close funding gaps. The announcement cited research showing that every US$1 invested in women’s health yields US$3 in economic growth and that closing the gender health gap could boost the global economy by US$1 trillion annually by 2040.

On August 4, 2025, the Australian government announced an additional AUD20 million (US$13 million) in humanitarian assistance for Gaza.

The funding will support organizations delivering food, medical supplies for field hospitals, and other support to women and children. The new package includes:

• AUD6 million (US$4 million) to the UN WFP for food supplies;
• AUD5 million (US$3 million) to UNICEF for nutritional support to children;
• AUD5 million (US$3 million) to the ICRC to meet essential needs, including access to healthcare;
• AUD2 million (US$1 million) for relief support with the UK; and
• AUD2 million (US$1 million) to the Jordan Hashemite Charity Organization for medical supplies.

The announcement brings Australia's total humanitarian commitment to Gaza and Lebanon to over AUD130 million (US$85 million) since October 2023. The government reiterated its call for an immediate ceasefire, the release of all hostages, and unimpeded aid access into Gaza.

On July 31, 2025, JICA held a signing ceremony for a US$90 million loan to HDBank to support Vietnam's agricultural sector.

The loan is co-financed with FinDev Canada and SMBC. The project aims to improve access to finance in Vietnam's agricultural sector by providing long-term loans through the bank, thereby contributing to the expansion of agricultural production and income.

The project is the second under the SMBC- JICA Sustainable Finance Framework and is also part of SAFE. The initiative contributes to SDG # 1, SDG # 2, and SDG # 8.

On July 30, 2025, the German government published its 2026 draft budget, confirming a continued cut to Germany’s development spending and projecting a fall in the ODA/GNI to 0.52%.

The 2026 draft budget outlined a EUR9.9 billion (US$11.5 billion) allocation for the BMZ, a 3% decrease of EUR331 million (US$383 million) compared to the 2025 draft. The department's budget is planned to shrink further to EUR9.3 billion (US$10.8 billion) by 2029. This corresponds to a fall in ODA/GNI is from 0.56% of GNI in 2025 to 0.52% in 2026, and further to 0.43% by 2029.

Other ministries also faced cuts:

• The AA was allocated EUR6.1 billion (US$7.1 billion), a slight increase from 2025. The budget line for humanitarian assistance and crisis prevention remained unchanged at EUR1.43 billion (US$1.7 billion), following a 47% cut between 2024 and 2025;
• The BMG’s envelope for global health was set at EUR122 million (US$141 million), a decrease of EUR10 million (US$12 million) from 2025; and
• The BMFTR saw an overall budget decrease of 5%, and its budget line for health research, medical technology, and global health is cut by 15% to EUR327 million (US$379 million).

German Finance Minister Lars Klingbeil described the cuts as a political compromise, stating that coalition partners had pushed to either dismantle the ministry or significantly reduce its funding and supported Development Minister Reem Alabali-Radovan's pledge to improve spending efficiency.

Parliamentary discussions on the 2026 budget draft are set to commence following the summer recess, with final decisions expected at the Budget Committee’s settlement meeting in November 2025.

On July 29, 2025, Canadian Minister of Foreign Affairs Anita Anand announced CAD40 million (US$29 million) in new funding for Palestinians in Gaza and the West Bank.

The announcement was made at the UN High-Level International Conference for the Peaceful Settlement of the Question of Palestine. The funding includes:

• CAD30 million (US$22 million) for humanitarian assistance, focusing on logistics, scaling up aid delivery, and providing supplies; and
• CAD10 million (US$7 million) to support the Palestinian Authority’s role in stabilizing and governing the West Bank.

With this new funding, Canada has committed over CAD355 million (US$260 million) in international assistance to Palestinians since October 2023. Minister Anand reiterated Canada's support for a two-state solution, an immediate ceasefire, the release of all hostages, and sustained humanitarian access to Gaza.

On July 28, 2025, Norway announced a contribution of NOK200 million (US$20 million) to support the Palestinian government in paying public employee salaries amid a severe economic crisis.

The announcement came as Norweigan Foreign Minister Espen Barth Eide attended a UN conference on the two-state solution. The funds are intended to help sustain essential services such as healthcare and education. The economic crisis has been exacerbated by the war in Gaza and Israel’s withholding of Palestinian tax revenues, which, according to Palestinian authorities, amount to NOK28 billion (US$2.7 billion) since October 2023.

The contribution brings Norway's total support to Palestine in 2025 to more than NOK1.1 billion (US$109 million).

On July 27, 2025, the foreign and defense ministers of Australia and the UK issued a joint statement in Darwin, Australia, reaffirming their shared commitment to the WPS agenda.

The statement, released ahead of the 25^th anniversary of the UN Security Council Resolution 1325, noted that the promise of the WPS agenda remains unfulfilled. The ministers expressed concern that women and girls continue to be disproportionately affected by conflict and that their exclusion from peace processes prevents lasting security. The nations also highlighted their concern about the use of conflict-related sexual violence as a tactic of war.

Both nations committed to the full implementation of the agenda, including to:

• Promote women’s leadership in all areas of peace and security;
• Support women-led organizations and human rights defenders in conflict settings;
• Strengthen accountability mechanisms to address sexual and gender-based violence; and
• Collaborate internationally to advocate for the WPS agenda.

On July 25, 2025, the US MCC announced significant cuts to its programming following the US administration’s foreign assistance review, stating that stated its portfolio will now align with the administration's 'America First' foreign policy, with specific details on mission and structure to become available following consultations with Congress.

The agency terminated programs in Cape Verde, Gambia, Indonesia, Kenya, Lesotho, Malawi, Mauritania, the Philippines, Senegal, Tanzania, Timor-Leste, Togo, and Zambia. The MCC board is set to determine the continuity of programs in Albania and Liberia in August 2025, and typically approves new compacts and grants at the end of the calendar year. Many canceled programs were smaller threshold grants.

The rationale for the cuts was described as unclear by former officials, especially concerning programs in the Philippines, Indonesia, and Zambia, which were frequent espoused as hurdles to growing Chinese influence. Senator Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, criticized the numerous program terminations, arguing that they would damage US alliances and cede regional influence.

The agency has lost about a third of staff since the start of the administration, however, the proposed fiscal year 2026 budget bill allocated the same level of funding to the MCC as it received in preceding years, indicating a modicum of bipartisan support.

On July 25, 2025, Germany announced a EUR500 million (US$586 million) loan to South Africa, through the German development bank KfW, which aims to facilitate reforms in South Africa’s energy sector to create a better environment for private investment and support the country's transition to renewable energy.

The funds will support the expansion of the necessary grid infrastructure for solar and wind power. The loan is composed entirely of market funds.

The initiative is part of the JETP, through which Germany, the UK, France, the Netherlands, Denmark, and the EU support South Africa's climate and energy policy. Under the JETP, the South African government committed to accelerating its phase-out of coal. The loan will promote the needed expansion of South Africa’s power grid, with a target of constructing over 14,000 kilometers of new transmission lines by 2032.