Germany s bilateral development cooperation with Sub-Saharan Africa: An Agenda for Reform

Germany s bilateral development cooperation with Sub-Saharan Africa: An Agenda for Reform

Limited share of development cooperation in the context of donors ODA net payments (incl. debt r elief ) f or SSA 2002/ 03, donor s' shar es i n % Other s 32% NL 4% WB 12% D 6% EC 10% F 12% UK 6% US 18% D F US UK EC WB NL Others

1800 Constant net payments of development cooperation with SSA 1600 Net payments (m ) without debt relief Debt relief 1400 1200 1000 800 600 400 200 0 1997 1998 1999 2000 2001 2002 2003

Broad regional allocation of development cooperation with SSA TUNISIA MOROCCO WESTERN SAHARA ALGERIA LIBYA EGYPT SENEGAL GAMBIA GUINEA BISSAU GUINEA SIERRA LEONE LIBERIA COTE D IVOIRE MAURETANIEN MALI BURKINA FASO SAO TOME & PRINCIPE Priority focus countries NIGER NIGERIA BENIN TOGO CAMEROON EQUAT.GUINEA GHANA GABON REP. CONGO ERITREA CHAD SUDAN DJIBOUTI ETHIOPIA ZAR SOMALIA UGANDA KENYA RWANDA D.R. CONGO TANSANIA BURUNDI TANZANIA Partner countries ANGOLA ZAMBIA MALAWI MOZAMBIQUE ZIMBABWE SEYCHELLES Potential partner countries NAMIBIA BOTSWANA COMOROS MAURITIUS SOUTH AFRICA SWAZILAND LESOTHO MADAGASCAR

Limited importance of development cooperation in main focus partner countries (German share in ODA payments) 16,3 11,1 7,7 8,3 6,9 5,8 4,7 3,5 5,3 4,2 4,8 3,6 3,8 3,8 4,1 2,3 Ethiopia Benin Burkina Faso Ghana Cameroon Kenya Malawi Mali Mozambique Namibia Rwanda Zambia Senegal South Africa Tanzania Uganda

What does German development cooperation stand for? In which fields is it especially effective? environment conflict prevention energy business development governance HIV/AIDS primary education vocational trainig tropical forest urban development transport agriculture conservation of resources gender

Paris Declaration No. 33 Excessive fragmentation of aid..impairs aid effectiveness. A pragmatic approach to the division of labour and burden sharing increases complementarity and can reduce transaction costs. No. 34 Partner countries commit to provide clear views on donor s comparative advantage No. 35 Donors commit to make full use of their respective comparative advantage at sector or country level by delegating authority to lead donors for the execution of programmes.

Focus on comparative advantage

Position paper Reaction on political dynamics in Africa New comprehension of development cooperation in the context of PRS, NEPAD, Monterrey Consensus, G8 Plan for Africa Debate on impacts, effectiveness and efficiency of development cooperation Agenda for Reform: 10-point program to increase visibility as well as efficiency and effectiveness of development cooperation with SSA

Three substantial elements of reform: To strengthen professional profile in three areas To encourage regional approaches and extend the regional portfolio in three areas To create conditions for more joint financing

Aim 1: To increase effectiveness and efficiency of bilateral development cooperation

Aim 2: To enhance the visibility of development cooperation with Africa

Development of a German profile Well communicable, easy comprehensible Three profile components maximum per focal point Criteria: African dynamics, international discussion, comparative advantages, critical mass Not relative sectoral-professional but strategic decision of the BMZ

Focal points of development cooperation by comparison 11 10 9 7 7 6 5 2 3 2 0 good governance crises prevention education health water nutrition/agriculture environment private sector development energy transportation/communication regional corporate groups

Good Governance as a central factor

Good Governance as a central factor

Good Governance as a central factor

Good Governance as a central factor

Infrastruktur related ODA by donor

Good Governance Private Sector Development Water Country-specific Country Arranging decentralisatio n politically Enabling environment Governance reform processes Develop ment of the financial sector Agribusiness Water and sanitarian supply Sector reforms Managem ent of water resources Regional Governance reform processes Peace and security Managem ent of water resources

Country-specific profile Good Governance Water WIRAM Profile components Ethiopia Governance reform processes Decentralisation Water and sanitarian supply Sectoral reforms Management of water resources Enabling environment Development of the financial sector Promotion of rural economy Benin Burkina Faso Ghana Cameroon Kenya Malawi Mali Mozambique Namibia Rwanda Zambia Senegal South Africa Tanzania Uganda

Cross border profile Governance reform processes Peace and security Management of water resources Fortification of the RECs institutional capacities Enabling environment Regional Good Governance initiatives Crisis prevention at regional organisations African Peacekeeping capacities Small Arms control Institutional fortification Integration and coordination Harmonizati of water politics AU SADC EAC ECOWAS IGAD

80000 Commitments for development cooperation in 1000 Euro 70000 60000 50000 40000 30000 20000 Others TC Others FC Water TC Water FC P+S TC P+S FC Governance TC Governance FC 10000 0 2003 2004 2005 2006

Program based approaches in SSA Aid as % GDP 45 40 35 30 % GDP 25 20 15 10 5 0 Mali Ethiopia Malaw i Sierra Leone Aid as % GDP

Program based approaches in SSA 120 100 80 Budget support 60 Basket financing 40 Total 20 0 2002 2003 2004 2005 2006 In millions of EUR; figures for 2005 programmed, figures for 2006 estimated.

Distribution of joint program financing among priority areas Especially in those areas that are not covered by our bilateral profile, e.g.: Basic education (Malawi, Mozambique), Health (Malawi, Tanzania), Natural resources (Benin), Agriculture (Burkina), Transportation (Namibia)