Canada and AfDB Group Launch New Technical Cooperation Fund to Finance Development Projects in Africa
The Government of Canada and the African Development Bank (AfDB) Group announce a new Technical Cooperation Arrangement under which Canada is providing Can.$5 million to a bilateral Fund for development projects financing in Africa, focusing on governance, regional economic integration, private sector development, environment and gender in line with the Bank’s focus areas. The newly approved Canadian Trust Fund, covering a period of 7 years, is completely untied.
The AfDB, through the Partnership & Cooperation Unit, will manage the Fund to ensure transparent and results-oriented resources utilization.
Previous Cooperation Arrangement between the Government of Canada and AfDB Group was signed in December 2001 and amended in May 2002. Under this previous arrangement, forty activities were financed in the areas of aid effectiveness; social development (gender); environmental sustainability, governance, human resource development and private sector.
The new Technical Cooperation Arrangement demonstrates a strong commitment of the Government of Canada to support the Regional Member Countries (RMCs) through the AfDB Group, in addressing the major development challenges towards the achievement of Millennium Development Goals by 2015.
At a glance: Canada and the AfDB Group
The Government of Canada joined the African Development Fund (ADF) on 23rd May 1973 and the African Development Bank (ADB) on 30 December 1982. For the period of 2005-2015, the Government of Canada has provided the equivalent of US$ 172 million through the Highly Indebted Poor Countries (HIPC) Trust Fund for financing the International Development Association (World Bank) and AfDB Group’s contribution to the HIPC initiative for 15 countries in Africa. In the context of the ADF XI replenishment, the supplementary contribution pledged by the Government of Canada is CAD 302 million. From 1973 to 2007, five Bilateral Technical Cooperation Arrangements with Canada led to the mobilization of approximately Can. $30 million. These funds were used to: recruit Canadian technical assistants; increase the institutional capacity of the AfDB Group and the development of the technical and administrative capacity of the RMCs.