Policy Updates

On May 14, 2024, Norwegian Prime Minister Jonas Gahr Støre, Tanzanian President Samia Suluhu Hassan, the president of the ADB Group, and the executive director of the International Energy Agency co-hosted the Summit on Clean Cooking in Africa.

The aim of the summit was to emphasize 2024 as a turning point for progress on ensuring clean cooking access for all.

Støre noted that nearly four in five Africans cook their meals over open fires and traditional stoves, using wood, charcoal, animal dung, and other polluting fuels that have severe impacts on health, gender equality, and the environment. Women and children are especially affected. Støre announced that Norway will support the financing of clean cooking with more than NOK500 million (US$46 million).

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 May 10, 2024, more than 40 Canadian international cooperation organizations issued an open letter to the Canadian government to call for a response to the cross-cutting crisis in Haiti, foster greater coherence in Canada’s foreign policy, and better demonstrate Canada’s feminist approach to promoting peace and security.

The letter, addressed to Canadian Prime Minister Justin Trudeau and other top ministers and backed by representatives from Haitian civil society, presented recommendations for a resolute and lasting contribution to resolving the crisis in Haiti. Haiti’s ongoing political crisis has fostered an environment of violence, SGBV, food insecurity, and socio-economic insecurity.

The signatory organizations called on the Canadian government to champion Haiti’s cause by:

• Support the political transition process: Canada should recognize and support the recently sworn-in Transitional Presidential Council so that it can effectively implement the “Political Accord for a Peaceful and Orderly Transition” to restore constitutional normalcy and legal order. Canada should also insist on broad political representation of all segments of society, particularly women and youth;
• Stand against arms trafficking: Canada should encourage international responses and engage in advocacy with the US to stop arms trafficking to Haiti by providing the security forces with logistical and financial support to help restore public security; and
• Improve development and humanitarian assistance: Canada must reconsider the current project-based approach to development and humanitarian funding, which often fails to reach the most vulnerable people and most affected areas. Canada should work with CSOs to implement the triple nexus approach, combining interventions structured in the humanitarian, development, and peace fields as well as increase and diversify its funding to reach more affected sectors, including agriculture, health, protection of civilians, WASH, shelter, education, economic support, and more.

On May 8, 2024, during the African Fertilizer and Soil Health Summit in Nairobi, Kenya, Norway announced a NOK33 million (US$3 million) commitment to support the implementation of a ten-year action plan for improving soil fertility in African countries.

Norwegian Minister of International Development Anne Beathe Tvinnereim noted that the state of the African soil is at its poorest after decades of overexploitation, causing of micronutrients that are crucial for crops to thrive. Harvests grown in the poor soils have been negatively affected, contributing to the hunger crisis across the continent. Tvennereim noted that collecting detailed information about the current situation is a key delivery of Norwegian support.

The African Union Development Agency is planned to play a leading role in supporting the implementation of the African action plan at country level. The Norwegian support will be used on capacity building for policymakers and farmers, as well as facilitating regional knowledge exchanges. Part of Norway’s support will be a financial contribution to the creation of an open digital platform on soil health established by CGIAR and Varda. The platform aims to collect soil health data and make it available for policymakers, private sector, fertilizer producers, researchers, and farmers.

On May 7, 2024, Norad presented the statistics on Norwegian development assistance in 2023, showing that Norwegian ODA reached a record high of NOK58.6 billion (US$5.4 billion), an increase of 18% or NOK9 billion (US$832 million) compared to 2022.

ODA increased in all regions, significantly affected by the one-time additional allocation of NOK5 billion (US$462 million) to LICs particularly affected by Russia's full-scale invasion of Ukraine.

By region, the largest increase in ODA was to Europe. In total, European countries received NOK9.1 billion (US$842 million) in funding. Of the total European allocation, the largest share of funding went to Ukraine and Moldova. The funding to Ukraine in 2023 stood at NOK7.9 billion (US$730 million).

Development assistance to the African continent increased by NOK2.5 billion (US$321 million), reaching a total of NOK10.2 billion (US$943 million). Africa remains the region receiving the most development assistance from Norway. The increase in funding to Africa is explained by long-term assistance to agriculture, fisheries, food security and emergency relief.

Development assistance to the Middle East increased by over NOK1 billion (US$92 million), reaching NOK3.8 billion (US$351 million) in 2023. The increase was almost exclusively in emergency assistance. Palestine was the second-largest recipient of Norwegian development assistance in 2023, receiving NOK1.2 billion (US$111 million). The majority of the funding was given as humanitarian assistance and emergency relief.

By partner, multilateral organizations were the largest partner group for Norwegian ODA, followed by CSOs and the public sector. Multilaterals received NOK31.7 billion (US$2.9 billion) in 2023, an increase of NOK6.3 billion (US$582 billion) from 2022. CSOs received NOK13.2 billion (US$1.2 billion) in 2023, compared to NOK10.3 billion (US$952 million) in 2022.

The World Bank Group was the largest partner with NOK7.4 billion (US$684 million) in 2023, of which slightly over one-fifth was core support. The WFP was the second-largest recipient with NOK2.4 billion (US$222 million), approximately half of which was earmarked for emergency relief. Overall, multilateral organizations were the dominant partner group for Norwegian health assistance, with over 80% being channeled through multilateral partners in 2023.

By sector, emergency relief and multisectoral support saw the largest growth from 2022 to 2023, while there was a decrease in refugee expenses and earmarked assistance for education.

ODA to agriculture, fisheries, and food security significantly increased from NOK3.9 billion (US$360 million) in 2022 to NOK6.4 billion (US$592 million) in 2023. Most of the increase of NOK2.5 billion (US$231 million) was funded by the one-time funding package for LICs particularly affected by Russia's war against Ukraine.

Total Norwegian ODA to health stood at NOK6.5 billion (US$601 million) in 2023, up from NOK6.3 billion (US$582 million) in 2022. This is significantly lower than in 2020 and 2021, when development assistance globally was influenced by the Covid-19 pandemic.

Between 2014 and 2023, health assistance slightly increased when measured in 2024 prices, from NOK4.7 billion (US$434 million) in 2014. The largest partners in health assistance in 2023 were Gavi at NOK1.5 billion (US$138 million), UNFPA at NOK1.1 billion (US$101 million) and the WHO at NOK687 million (US$63.5 million). Of the earmarked health ODA, totaling NOK3.5 billion (US$323 million) in 2023, 58% went to programs targeting LICs not geographically earmarked. Africa received the most of the geographically earmarked health support, with around NOK600 million (US$55.5 million).

In 2023, NOK1.7 billion (US$157 million) went to SRHR, down from NOK1.8 billion (US$166 million) in 2022. Multilateral organizations, an important partner group in Norwegian SRHR efforts, received 51% of the earmarked support in addition to the calculated core support, totaling 81% of SRHR support. UNFPA was the largest individual partner and received nearly half of total SRHR support.

On May 3, 2024, Canada announced CAD65 million (US$48 million) in international assistance funding to Lebanon, including CAD38 million (US$28 million) in development assistance funding and CAD27 million (US$20 million) in humanitarian assistance funding.

The humanitarian assistance will help provide WASH services, health care including SRH services, and protection services including for survivors of SGBV.

The development funding includes:

• CAD20 million (US$15 million) to the UN FAO to improve the capacities of farmers and increase food security in response to climate change and economic shocks;
• CAD13 million (US$10 million) to UNDP to improve the economic security and prosperity of women-led micro-, small-, and medium-sized enterprises in sectors with high growth and export potential; and
• CAD5 million (US$4 million) to UN Women and UNDP to address barriers facing women’s representation in decision-making and leadership positions, specifically for women in parliament and municipal councils.

On May 3, 2024, USAID announced that it is providing US$190 million to Ukraine for energy assistance to build resilient, reliable, affordable and secure energy supplies to Ukraine.

The program, titled Securing Power, Advancing Resilience and Connectivity, will provide critical technical and equipment over a five-year period. The announced funding adds to the nearly US$1 billion in energy assistance that the US has provided since the start of the war in February 2022.

The US also passed the National Security Supplemental Bill, comprising US$95 billion in 'foreign aid' supplemental appropriations (with US$61 billion for Ukraine), and is slated to provide an additional US$1.4 billion from this bill in economic recovery assistance to Ukraine.

Additionally, USAID will launch Harvest, a program to invest in micro-, small-, and medium-sized grain and oil seed producers in Ukraine's agricultural sector. Harvest is an extension of USAID's Agriculture Resilience Initiative-Ukraine, through which USAID has invested over US$350 million and has leveraged more than that through the private sector and other donors.

On May 2, 2024, the UK government responded to the ICAI, the UK’s aid watchdog, recommendations for tackling fraud in UK ODA funding.

The FCDO thanked ICAI for reviewing the UK's approach to combating fraud in ODA funding released earlier in 2024. The FCDO partially accepted ICAI’s first recommendation to take a more robust and proactive approach to anticipating fraud. The FCDO noted that it was actively exploring the cost-effectiveness of creating an FCDO Fraud Intelligence Unit and was expanding its Fraud Liaison Officers’ Network to strengthen oversight.

The FCDO also partially accepted the second recommendation to strengthen its fraud in its top 20 ODA recipient countries, noting that it will reinforce the mandatory annual assurance assessment across control and risk areas and expand its Fraud Liaison Officer's network.

The FCDO fully accepted the final two recommendations, which called for new fraud management guidance to be written for capital investments and to increase the Head of Mission’s oversight and accountability for fraud risks relating to centrally managed and other government programs.

On April 30, 2024, it was announced that, as a part of the G7 Finance Track, the Italian MEF and ISTAT will host the seventh edition of the OECD World Forum on Wellbeing, entitled Strengthening Wellbeing Approaches for a Changing World, in Rome from November 4-6, 2024.

The event is part of the G7 Finance Track promoted by the Italian government. The Forum will be structured into five round tables that will discuss topics, including:

• The development of policy frameworks oriented towards equitable and sustainable well-being;
• The measurement and statistical methodology, as well as the analysis of well-being indicators;
• Climate change;
• Technological innovation and the use of artificial intelligence; and
• The next steps in the well-being agenda.

Other topics to be addressed include gender inequalities, inequalities and poverty, physical and mental health, and the aging population.

On April 25, 2024, Japan and Nigeria signed a JPY15 billion (US$97 million) loan agreement aimed at addressing Nigeria’s food security crisis by investing in agricultural infrastructure.

Under the terms of the grant, Nigeria will benefit from favorable conditions, including a low-interest rate and a lengthy repayment period of 30 years, with a grace period of 10 years. The loan is untied, allowing Nigeria flexibility in procuring necessary goods and services for its agricultural sector. By providing financial assistance for agricultural reforms, improved access to inputs for small-scale farmers, and enhancing domestic production capacity, Japan’s support seeks to contribute to the stability and development of Nigeria’s economy and society.

Japan’s commitment to aiding Nigeria’s food security aligns with its broader engagement in African development initiatives. At the TICAD8 in August 2022, Japan pledged to address food crises and support sustainable agricultural production in the region.