AfDB Launches New Multi-Donor Governance Trust Fund
Tunis, 29 September 2010 - The Board of Directors of the African Development Bank (AfDB) Group on 29 September 2010 in Tunis, approved a proposal for a multi-donor Governance Trust Fund.
The Fund’s objective is to help the Bank’s regional member countries build capable and responsive states by strengthening transparency and accountability in the management of public resources.
The governments of Norway and Switzerland have confirmed their contribution to the Fund. Norway has pledged 6.4 million NOK (approx USD 1.113 million) while Switzerland pledged CHF 3 million (USD 2.99 million). The Fund resources will be untied.
Activities to be funded by the fund will focus on one or more of the following areas:
- Measures to analyze and improve governance and reduce corruption, including the promotion of credible audit, accountability mechanisms and oversight institutions;
- Good financial management, including public procurement, tax and non-tax revenues administration and debt management;
- Support to investment climate and business environment;
- Sector governance, particularly in high-risk areas, like extractive industries.
Governance is becoming a more prominent area of focus for many African countries and development partners. The Paris Declaration on Aid Effectiveness stresses good governance and anti-corruption as areas where more support to country efforts and coordination is needed in order to improve development impact.
Governance is one of the key priorities of AfDB operations in Africa, as stated in its 2008-2012 Medium-Term Strategy.