Norway increases its support to the African Development Bank

Norway has pledged to increase its contribution to the African Development Bank’s fund for the poorest countries by 40 per cent. Its commitment of NOK 500 million for each of the next three years makes Norway the ninth-largest donor to the fund.

Norway participated in the replenishment negotiations for the African Development Fund, which were concluded in London in December. The negotiations have resulted in an increase of around 50 per cent in the fund’s available resources, and Norway, along with most of the donor countries, has agreed to increase its contribution. The fund will total approximately USD 8.9 billion for the period 2008–2010.

“The result of the negotiations shows the great trust that we donors have in the African Development Bank and its president, Donald Kaberuka. The African Development Fund plays an important role in the fight against poverty. These are monies which will benefit poor countries in Africa in the form of soft loans, grants and arrear clearance,” said Minister of the Environment and International Development Erik Solheim.

There is agreement that the African Development Bank is to concentrate its efforts to secure better results on areas in which it has particular expertise. The main focus will be on infrastructure (primarily water, energy and transport), support for good governance and regional integration. The African Development Bank will also increase its efforts in fragile states, including post-conflict countries, with major reconstruction needs.

The African Development Bank also has the ambition to provide intellectual leadership on development issues in Africa and to ensure a stronger African voice in international debates.

The United Kingdom has decided to double its contribution to the African Development Fund as part of implementing the G8 countries’ commitment to double development assistance to Africa by 2010. It is now the largest donor, followed by France and Germany.