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AfDB Approves a US$ 5.7 Million Trust Fund for Governance and Accountability
The African Development Bank’s Board of Executive Directors approved a Multi Donor Trust Fund of US$ $5.7million to support Value for Money, Sustainability and Accountability programs in Africa (VFM). The Fund has been created with the support of the Government of Norway and the Global Alliance for vaccines and Immunisation (GAVI) and will be administered by the African Development Bank. Several other donors have expressed interest in pooling resources into this Fund.
African governments spend on average 50% of their public budgets on social services. Large inefficiencies in the use of resources in education and health have a direct negative impact on human capital, with drastic consequences for inclusive economic growth. In an environment of declining aid, achieving greater value for each dollar invested is critical. In addition, and as witnessed by the Arab Spring, African citizens are demanding greater transparency and accountability in both delivery of social services and management of public resources.
Some 50 African Ministers of Finance and Health strongly requested the AfDB’s support on the Value for Money program (VFM) at a High Level Ministerial Dialogue organized by the Bank in July 2012.
Projects funded from the Trust Fund will be informed by the Tunis Declaration, the AfDB’s Strategy 2013-2022 and its upcoming Human Capital Strategy. They will contribute to inclusive growth and serve the Bank’s operational priority of governance and accountability. They will be aimed at:
- Building the skills of African leaders on the VFM program
- Enhancing evidence-based planning and budgeting
- Developing mechanisms to improve efficiency, effectiveness, transparency and accountability
- Promoting equitable and sustainable financing of social services