Organisation of Development Assistance

Canada’s ODA is administrated by the Canadian International Development Agency (CIDA) under the authority of the Ministry of Foreign Affairs. CIDA administrates about 75% of the ODA. The remaining 25% which includes support to UN Organisations and International Financial Institutions is managed by the Ministry of Foreign Affairs and by the Department of Finance, respectively. CIDA has six programme branches (Asia; Africa and the Middle East; Americas; Central and Eastern Europe; Multilateral Programme; and Canadian Partnership) and three corporate management and service branches.

Global Policies and Priorities

In 1994 Canada conducted a Foreign Policy Review which also included a review of CIDA’s aid programming. The review identified the current focus of Canada’s ODA on six priority sectors: (i) Basic human needs (including primary health care, basic education, family planning, nutrition, water and sanitation, and shelter); (ii) Women in development; (iii) Support for infrastructure; (iv) Human rights, democracy and good governance; (v) Private sector development and (vi) Environment. Special attention is given to basic human needs and the global target for basic human needs is 25% of Canadian ODA.

Assistance is targeted to low income countries, with Africa receiving the highest share of resources (approximately 40%). Bilateral aid is concentrated on a limited number of countries all of which are amongst the poorest countries. In Southern Africa assistance is mainly provided to Malawi, Mozambique, South Africa, Zambia and Zimbabwe. A regional policy framework was developed in 1996, which resulted in an update of all programmes. Due to the special needs in Southern Africa the regional target for basic human needs is 35% of Canadian ODA to the region as set out in the Regional Policy Framework for Southern Africa.

Type of Assistance and Programming

Since 1986 all Canadian aid is provided as grants. Programming is based on annual budgets approved by Parliament in February with indicative planning figures approved for the following five years. CIDA uses the same fiscal year as Malawi, 1 April - 31 March. CIDA has the authority to untie two thirds of aid to the poorest countries, including Malawi.

The bilateral/multilateral ratio is 60/40. The ratio has increased in favour of multilateral aid primarily due to the overall cut in ODA and existing multilateral financial commitments.

Canadian aid is delivered through the full spectrum of executing agencies. A significant proportion of programme execution and implementation is carried out by NGOs. Specific projects attempt to strengthen local NGOs.

Global Level of Assistance

Canadian aid is approximately 0.3% of GDP. Over the past few years Canadian ODA has decreased. Thus, for 1995/96 the aid budget was cut by 15%. In 1997/98 total ODA will amount to around USD 1.5 billion placing Canada among the world’s ten largest donors.
 

Activities in Malawi

Programme Priorities in Malawi

All of CIDA’s development programmes in Malawi are based on and consistent with the priorities of the Government of Malawi. The overall priority is poverty reduction. Within this framework the principal areas of focus are: (i) basic human needs with particular attention on primary (female) education and basic health care (water supply and sanitation); (ii) environment; (iii) gender; and (iv) human rights, governance (including economic management and private sector support) and democratic development. Co-operation varies from capacity development to assistance at grass root level. CIDA uses the programme approach within which coherent sets of projects are implemented.

Future Directions

A country delivery strategy is currently under preparation and is expected to be finalised by mid 1997. The future focus of Canadian assistance to Malawi will be within the four above-mentioned areas. It is anticipated that 1996/97 assistance will remain at the level of 1995/96.

Level of Assistance

 Distribution of Assistance in Malawi

Geographical focus: No specific geographical focus

Contact person and Address

Canada is represented in Malawi through the High Commission in Lusaka, Zambia. However, CIDA’s programme is delivered through the High Commission in Harare, Zimbabwe.

Mr. Dean Frank
Canadian High Commission
45 Baines Avenue
P.O. Box 1430
Harare, Zimbabwe

Tel: (263) 4 733 881   Fax : (263) 4 732 917 or 4 735 400
E-mail: dean.frank@hrare01.x400.gc.ca
 

Organisation of Development Assistance

The Ministry of Foreign Affairs is divided into two main groups; the North Group and the South Group which is responsible for all developing countries. In 1991 DANIDA (Danish International Development Assistance) became an integral part of the South Group, which is headed by the Minister for Development Co-operation.

The Board of Development Assistance Cooperation, The Council of Development Assistance Cooperation, and the Committee on Industrialisation in Developing Countries act as advisory bodies to DANIDA and fora for discussion of Danish cooperation policy.

The Industrialization Fund for Developing Countries promotes economic development by providing equity and risk capital to joint ventures.

Global Policies and Priorities

Danish ODA is based on policy guidelines laid out in "Strategy for Danish Development Policy Towards the Year 2000". The Strategy emphasises the fundamental framework for Danish ODA. Besides confirming poverty alleviation, through promotion of economic growth and social development, as the basic objective for development assistance, the Strategy confirms three cross-cutting themes to be pursued at all levels: (i) women in development, (ii) environment and (iii) democratisation and human rights.

Sectoral interest is on agriculture; rural development and food security; health and population; water and sanitation; and infrastructure.

Since 1993, Denmark has concentrated its assistance on 20 programme countries. Programme countries in Southern Africa include Malawi, Mozambique, Tanzania, Zambia and Zimbabwe. The Republic of South Africa and Angola receive transitional assistance. More than half of Danish aid is concentrated in Africa with close to 60% of ODA, while South and Central Asia receive 29%. The rest is evenly distributed among Latin America, the Middle East and North Africa, and other Asian countries.

Type of Assistance and Programming

Most Danish aid is provided as grants. Programming is based on a revolving five-year planning exercise with expenditure frames submitted once a year to Parliament by the Government. Mixed credits are extended on exports to developing countries with a per capita GNP of under USD 2,230.

Denmark is in favour of untied aid, but aims to ensure that approximately 50% of its bilateral assistance is spent on capital equipment, goods and services procured in Denmark.

It is Danish policy to secure and maintain an even distribution of bilateral/multilateral aid. In 1997 the ratio is projected to be 53/47.

The NGOs are an important partner in development and based on "framework agreements", DANIDA can enter into flexible funding arrangements with larger NGOs, allowing the NGOs more responsibility for the detailed planning and implementation of projects within a four year period.

Global Level of Assistance 

In Denmark, the OECD target of 0.7% of ODA/GDP has been exceeded since 1992. Denmark heads the list of donors as the target is to keep ODA at 1% of GDP. According to Danish legislation a shortfall one year is added to the following year. In 1995 ODA/GDP was 0.95%; consequently the ratio was 1.05% in 1996. Additional to the development assistance budget, the Danish Parliament has decided to set aside special funds for global environment efforts and in aid of humanitarian catastrophes (MIKA). The intention is for this programme to reach 0.5% of GDP by the year 2002.

Danish ODA disbursement amounted to USD 1.4 billion in 1994 and 1.6 billion in 1995 which was a 2% decrease in real terms. In 1996 it is estimated that total ODA disbursement will reach USD 1.8 billion.  
 

Activities in Malawi

Programme Priorities in Malawi

In 1995 Denmark decided to designate Malawi a programme country as of January 1996. Although Danish support is relatively new, development co-operation between Denmark and Malawi actually commenced in 1964 but was cut back and finally suspended in 1993.

The overall objective of Danish development assistance to Malawi is to support Government efforts to alleviate poverty. In 1996 Danish aid was limited to balance of payments support and democracy and human rights, while activities in other sectors were being prepared.

Future Directions

The Danish programme will concentrate on three sectors: (i) education, primarily intermediate schooling and vocational training; (ii) agriculture, with emphasis on animal husbandry and irrigation and (iii) telecommunications plus (iv) balance of payments support.

It is foreseen that the balance of payments support will continue to decrease, while co-operation in the other priority sectors will increase so that by year 2000 the three main sectors receive 25% each, balance of payments support approximately 13%, and the remaining 9% will be for other areas, primarily in democracy and human rights.

Denmark is one of the front runners in the sector programme approach. As the approach is relatively new in Malawi and therefore will take some time to establish, Denmark will, while such programmes are being prepared, implement preparatory support projects within the chosen sectors.

Level of Assistance

In line with the Danish five-year revolving planning exercise, a five year strategy period has been set up for Malawi.

It is expected that assistance during the present strategy period (1996-2000) will increase to USD 27 million in year 2000.

Distribution of Assistance in Malawi

Sectoral focus:

Geographical focus: No specific geographical focus

Contact Person and Address

Mr. Bo Jensen
Charge d'Affaires, e.p.
Royal Danish Embassy
Private Bag 396
Lilongwe 3, Malawi

Tel: 730 463  Fax: 784 961
 

General Institutional Structure

Organisation of Development Assistance

The Ministry of Economic Co-operation and Development (BMZ) is responsible for German ODA and the Ministry of Foreign Affairs handles all humanitarian aid as well as contributions to UNICEF and UNHCR. Implementation of bilateral programmes is subcontracted by BMZ to the German Agency for Technical Co-operation (GTZ) and to the Kredietanstalt fur Wiederaufbau (KfW).

KfW is responsible for financial co-operation (investments), which is currently the most important element of Germany's bilateral co-operation whereas GTZ is responsible for sectors of technical co-operation, i.e. teaching and training by German advisors.

A number of other institutions involved in German ODA receive federal financing, e.g. Carl Duisberg Gesellschaft (CDG) and the German Foundation for International Development (DSE) which focus on fellowships and training in a variety of technical fields. Germany also have a volunteer service (DED) which assign young German professionals to developing countries.

Global Policies and Priorities

To qualify for German co-operation assistance, developing countries have to fulfil a number of criteria; 1) observance of human rights; 2) free participation in the political process; 3) rule of law; 4) establishment of a market oriented and social economic order; and 5) a country's policy must focus on social services and poverty alleviation.

German development policy has experienced radical changes in the 1990s and is now concentrating on three main areas: (i) Poverty alleviation, including support for structural reforms and promotion of private sector industry; (ii) Protection of the natural resource base; (iii) Promotion of education and training.

Protection of human rights, the rule of law and participation of the population in the political decision making process, social justice and a secure economic order are cross-cutting themes advocated by German development co-operation.

At regional level, the CEEC receives the largest share (34%) of bilateral ODA, followed by sub-Saharan Africa with 28%, and Asia 23%. The rest is distributed between Latin America and the Caribbean, and the Middle East and North Africa.

Type of Assistance and Programming

Most German aid is grants and for the least developed countries all aid is provided as grants. Approximately half of all aid is tied. Tying is greatly influenced by the large amount of primarily tied technical co-operation as a proportion of total commitments. The degree of tying depends on the development of the individual countries.

The German programme cycle and aid talks are taking place every two years and usually follow the calendar year.

In 1994 the bilateral/multilateral ratio was 61/39 and in 1995 it was 64/36. It has been agreed that the multilateral share should be further reduced in the future.

Co-operation with NGOs is becoming increasingly important and dialogue at the policy level and co-financing has intensified.

Global Level of Assistance

The ODA/GDP ratio has continued to decline in the nineties. In 1995 the ratio was 0.31%, the lowest since 1960. The government reaffirmed the OECD 0.7% target in 1995, but there is no timetable for accomplishing it. BMZ, which is responsible for 70% of the aid volume, had its budget cut in real terms in 1996.

In terms of volume, Germany ranked third among DAC members in 1995 with USD 7.5 billion.
 

Activities in Malawi
 
Programme priorities in Malawi

German development assistance to Malawi is primarily concentrated on technical co-operation and capital investment. In addition Germany supports Malawi's structural adjustment efforts through balance of payment support.

The major sectors benefiting from German assistance are: health, education, natural resources, infrastructure and agriculture.

Future Directions

Germany commits funds to its partners every second year, and in the case of Malawi the most recent negotiations took place in November 1996. In general, Germany has in recent years placed more emphasis on environmental protection. Future co-operation is likely to continue to focus on capital investment projects and technical co-operation.

Level of Assistance

Distribution of assistance in Malawi

Sectoral focus:

Note: Other sectors include: Natural Resources (5%); Human Resources (5%); Industry (5%), and Transport (6%).

Geographical focus: No specific geographical focus

Contact person and Address

H.E. the Ambassador
Embassy of the Federal Republic of Germany
P.O. Box 30046
Lilongwe 3, Malawi

Tel: 782 555  Fax: 780 250

General Institutional Structure

Organisation of Development Assistance

Formulation of Japan’s Development Co-operation Policy is shared among four ministries: Ministry of Foreign Affairs (MOFA) which negotiates with developing countries; Ministry of Finance responsible for jurisdiction for bilateral aid; Ministry of International Trade and Industry and Ministry of Economic Planning Agency (EPA). The ministries administrate about 95% of Japanese ODA, while the remaining 5% is distributed among 14 other ministries.

Other institutions include the Overseas Cooperation Fund (OECF) which under the supervision of EPA implements the bilateral loan programme. In addition, Japan International Co-operation Agency (JICA) implements Ministry of Foreign Affairs’ grant programme. The Japanese Overseas Co-operation Volunteers (JOCV) programme is administrated by JICA.

Global policies and priorities

The basic philosophy behind Japanese development assistance is to support self help efforts of developing countries. A 1992 charter lays down four basic principles; (i) tandem pursuit of development and environmental conservation; (ii) avoidance of use of ODA for military purposes; (iii) emphasis on the allocation of resources of the recipient country towards their economic and social development; (iv) attention is paid to the recipient’s efforts towards democratisation, respect for human rights and introduction of a market economy.

Japan has taken steps to strengthen the policy dialogue with its developments partners and has simultaneously embarked on a policy of matching its aid quantity with the quality.

Global themes that receive specific attention include; the environment, population and AIDS, human resources development, women in development and democratisation. As regards sectoral priorities, aid is concentrated on the development of economic infrastructure and services and in particular transport and communication, although Japan provides aid across a wide spectrum of sectors. Within social infrastructure, basic education, primary health and other basic human needs have become increasingly important. Structural adjustment, debt relief and food aid are also important sectors.

Bilateral aid is provided to more than 150 countries. Almost 60% of the aid is geared towards Asia, while sub-Saharan Africa receives 20% of the bilateral funds. The remains are distributed between Latin America and the Caribbean (9%), the Middle East and North Africa (7%) and the CEECs and NIS receive approximately 4%.

Type of Assistance and Programming

The grant share of Japanese aid averaged 43% in 1992/93 whereas the DAC average was 71% in 1992/93. Generally, loan assistance has been regarded more favourably than in most other DAC countries, based on the view that self-help efforts are better motivated by repayment obligation. Because Japanese legislation does not permit debt forgiveness, Japan has made use of "equivalent action" when extending debt relief, in the form of untied debt relief grants. A country which has benefited from debt relief is not qualified for project loans.

Japan follows a regular schedule for project development. Loans are appraised in August/September, officially committed in November and signed in December/January. For grant aid, countries must make requests through the Embassies two years in advance in November. For training activities, requests must be made in June. The fiscal year is from April to March. In Asia aid talks take place each year, whereas in most African countries there is no fixed schedule.

Most of Japanese aid is untied. Grant procurement is limited to Japanese firms but not to Japanese goods and services. Non-project aid is untied, and grant food aid is procured in third countries.

The Japanese bilateral/multilateral ratio increased in favour of the multilateral aid in the early 1990s due to increased commitments to the multilateral institutions. Since 1993 the ratio has shown little or no variation. The ratio is steady at 72/28 and there are no indication of changes.

Co-operation through NGOs is becoming an increasingly important instrument in Japanese aid policy. The majority of Japanese NGO activities are concentrated in the Asian countries, although some are now active in African countries. In the recipient countries, Japanese representations can work directly with local NGOs.

Global Level of Assistance

The Fifth Medium-Term ODA Target (1993-97) call for total disbursement of USD 70-75 billion in ODA. Although the previous target (1988-92) was met in 1992, the ODA/GDP ratio decreased slightly over the period. In 1995 the ODA/GDP ratio was 0.28% which was equivalent to the 1994 dispersion. In spite of Japanese authorities’ commitment to improve the ODA/GDP ratio during the fifth Medium Term Target, a prolonged recession may curtail ODA spending in the immediate future.

In terms of volume, Japan has been in the lead of all DAC member countries for five consecutive years. Total ODA in 1995 was USD 14.5 billion. There is a tendency to increase bilateral grants and multilateral ODA and to decrease bilateral loans.  
 

Activities in Malawi

Programme Priorities in Malawi

Japan's aid is directed towards basic human needs (BHN), economic and social infrastructure and structural adjustment.

Japan provides loans and grants to Malawi, although loans are restricted to BOP loans. Project loans are suspended as Malawi has benefited from debt relief.

Within the above areas, Japan is active in inland aquaculture; in clean water supply in the southern and central regions; in primary health care at grassroots level and a primary health care project at Community Health Sciences Unit (CHSU) and Salima District Hospital; education, more specifically training, technical assistance at policy level, development of materials, volunteers and teachers at grassroots level. A non-project Grant Aid, originally established as balance of payment support is being used for concessional loans to small and medium scale private industry for importing services and goods. The sewerage project just completed in Lilongwe is an example of an environment related project. In the area of capacity building, Japan is focusing on technology transfer by providing JICA experts and JOCV volunteers in a broad number of areas. In addition, Japan offers a wide range of training courses within and outside of Japan. A rural water development project (social development) and an irrigation project at Bwanje Valley are ready for implementation in 1997.

Japan is also providing BOP support to Malawi. This assistance is linked to the World Bank's adjustment programme.

Future Directions

Aid negotiations between the Malawi Government and Japan took place in March 1997, but there is no fixed schedule for aid talks between the two countries. It is likely that Japanese aid will continue or even increase its assistance in the agricultural sector, including irrigation, rice cultivation, and horticulture. Water and sanitation and primary health care at grass root level are also areas of increased attention.

Level of Assistance

 
In 1996 (FY 1996/97) Japan contributed USD 35 million towards Malawi’s structural adjustment programme. USD 166,800 was provided for grassroots projects.

Distribution of Assistance in Malawi

Sectoral focus:

 Geographical focus: Projects are mainly in the Central and Southern regions.

Contact Person and Address

The Resident Representative                                          The Counsellor
JICA                                                                                    Embassy of Japan
P.O. Box 30321                                                                 P.O. Box 34190
Lilongwe 3, Malawi                                                            Lusaka, Zambia

Tel: 781 644   Fax:  781 125                                            Tel: 260 1 252036   Fax: 260 1 253488

General Institutional Structure

Organisation of Development Assistance

Within the Ministry of Foreign Affairs, the minister of Development Co-operation is responsible for ODA. The ministry is responsible for about 80% of all Dutch aid. Other ministries part taking in ODA matters include the Ministry of Finance, which is responsible for dealings with the IMF and the World Bank. The Ministry of Economic Affairs is responsible for UNCTAD/GATT and is partly responsible for the approval of associated financing. Finally, the Ministry of Housing, Physical Planning and Environment is responsible for environmental programmes and issues such as the Global Environment Facility.

The Netherlands Development Finance Company (FMO) supports companies in developing counties by granting them loans or buying shares and support joint ventures. FMO is funded from the development budget.

An autonomous part of the Ministry of Foreign Affairs and funded from Dutch aid is the Netherlands Development Organisation SNV. This organisation often acts as an intermediary between the government and the private sector and currently works with three hundred partner organisations in 28 countries.

In search for a more effective and cohesive policy in 1995-96 a major foreign policy review was conducted. The institutional walls between development cooperation (DGIS) and other fields within the Ministry of Foreign Affairs were broken down. Another major change is the substantial delegation of responsibilities (selection, appraisal and monitoring) to embassies. The objective is to accelerate the administrative process and to improve the quality of projects by being closer to the "owners" of the development process. As a consequence of this delegation many embassies have been reinforced in terms of staff. A third major change is that policy is now centred on a number of sectors/themes and that allocations will be made available on sectoral and/or theme level instead of on country level. This means that developing countries with good policies, which can present quality project proposals, will benefit more from Dutch aid than others. A fourth major change is that the Dutch ODA volume is pegged at least 0.8% of GNP.

Global Policies and Priorities

The Foreign Policy Review expressed the need to bring together all the instruments of foreign policy in order to improve the quality and coherence of the Netherlands foreign policy in general and development co-operation in particular. More attention is paid to political factors that influence co-operation, and to promotion of trade and investment in countries with dynamic economic prospects. However, poverty alleviation remains the centre of the aid policy.

The development policy puts strong emphasis on programme aid, e.g. debt relief, balance of payments support, and aid in support of specific sectors of the recipient country’s budget. In order to enhance "ownership", NGO and grassroots involvement in planning, preparation and implementation is deemed as crucial. Strengthening of the institutional capacity of recipient countries is also a priority.

The allocation of development funds in 1997 (and possibly in subsequent years) is based on five concrete, readily measurable quantitative aims agreed at international level. The first aim is to devote 20% of aid to "basic social services". This aim is a direct consequence of the strong Dutch support for the 20/20 Compact, whereby the rich countries pledge to devote 20% of their aid and developing countries 20% of their national budgets to the provision of basic social services. A second aim is to spend 4% of the budget on reproductive health. A third target is spending 0.1% of GNP to improving the environment in poor countries. A fourth aim is also related to the environment; a minimum of fifty million guilders will be spent on preservation of the tropical rain forests. The fifth aim for the 1997 budget is that aid to the least developed countries should be at least 0.25% of GNP. Besides the priorities mentioned above, Dutch development policy deals with many more sectors.

The new development approach in the Netherlands discarded the old country list. Aid can now be given to any country. The scale of aid to a particular country depends on the extent to which it is believed possible to achieve Dutch policy aims in that country.

Type of Assistance and Programming

The Dutch financial year follows the calendar year. Projects can be initiated any time. As selection, appraisal and monitoring responsibilities for most sectors (among the exceptions is macro economic aid) are delegated to Embassies, the time from project application until decision making can be relatively short, depending of course on the quality of the project proposal and the availability of funds. If necessary, missions will be fielded to improve the project proposal with additional information.

Dutch ODA is provided as a grant. The untying of aid remains a major focus of attention for Dutch development co-operation.

Global Level of Assistance

Following the Foreign Policy Review Dutch ODA is pegged at least 0,8% of GNP. The Netherlands is thus among the very few DAC members exceeding the 0.7 ODA/GNP target.

In 1996 volume of Dutch ODA was around USD 3.4 billion, increasing in 1997 to USD 3.5 billion. 
 

Activities in Malawi

Programme Priorities in Malawi

Traditionally Dutch aid has concentrated on technical co-operation in particular Dutch medical experts. Following the democratic turnaround in Malawi, the Netherlands decided late 1995 to commence a structural development relationship with Malawi in four fields: health, agro-forestry, governance and balance of payment support. Furthermore a small Embassy fund is available to finance small community led activities, study in the region (for professional educators) and special activities. Other Embassy funds are available for small activities in the field of environment and women and development.

Future Directions

Long term activities under consideration:

Health: support to Lilongwe District; support to planning unit in Ministry of Health and Population through strengthening of health management information system; support to training of nurses; support to Essential Drugs Programme

Agro-forestry: support to training institutions/institutional building

Governance: support to democratisation and Human Rights (civic education, parliament, local elections, case studies of human rights abuses in the past)

Macro-economic support: balance of payment support for the benefit of multilateral debt relief.

Level of Assistance

 Distribution of Assistance in Malawi

Sectoral focus:

Note: Bilateral Project Support includes, inter alia, support to "Going to Scale" AIDS project for the youth via UNICEF; Malawi Essential Drugs Programme of WHO; support to National Tuberculosis Programme; and a contribution to UNDP’s Democracy Consolidation project.
 

Geographical focus: No geographical concentration

Contact Person and Address

The Counsellor                                                                    Mail via Netherlands Consulate:
Royal Netherlands Embassy                                             P.O. Box 5096
United Nations Avenue                                                       Limbe, Malawi
P.O. Box 31905
Lusaka, Zambia

Tel: 263 1 253819/253994/253590
Fax: 263 1 253733
E-mail: nlgovlus@zamnet.zm

Organisation of Development Assistance

The Department of Foreign Affairs is responsible for representation of South Africa’s interest in the region and abroad. The Africa Branch of the Department houses the Southern Africa Development Community (SADC) national contact point. The Department has in proceeding years been active engaged in the support of a number of development projects within the region. These projects were not co-ordinated with other government institutions, or with SADC itself. The Department of Foreign Affairs is involved in various initiatives to move the process of inter-governmental consultation on regional planning and development.

Global Policies and Priorities

South Africa believes that SADC provides the most viable vehicle through which regional planning and development to the benefit of the whole sub-continent can be realised. It is further believed that the countries in the region can only achieve their full potential through close co-operation in the exploitation of natural resources in a co-ordinated fashion, the pooling of technical expertise, the harmonisation of trade practices and the promotion of economics of scale.

In view of the enormous socio-economic needs within South Africa itself, the level of external assistance was reviewed in 1993. As a result, the budget for technical assistance was scaled down. South African assistance is now concentrated on the Southern Africa region and more specifically on capacity building and small projects that are highly visible and make a direct contribution to improving the quality of life in the region.

The objectives of South Africa’s technical assistance programme are: (i) the promotion of economic development on a regional basis; (ii) economic and social development of the regional countries; (iii) exchange of technology, information and expertise; (iv) promotion of peace and stability in the region; (v) joint cross border projects to combat the spreading of diseases (human and animal); (vi) the promotion of two way trade and tri-lateral co-operation; and (vii) promotion of the Reconstruction and Development Programme in a regional context.

Type of Assistance and Programming

Technical assistance is provided in the form of training, study visits and consultancy services upon request. Assistance of a bilateral nature, must be based on a government to government request submitted to the resident South African Mission in the country concerned.  
 

Activities in Malawi

Programme Priorities in Malawi

The nature of South Africa’s assistance has changed in recent years, to focus more on the regional aspects of development. At bilateral level assistance is concentrated on primary health care, basic education and conservation. Due to the cut backs in South Africa’s assistance, initiation of projects is not always possible, but South Africa is able to provide assistance, primarily in the form of technical assistance, to existing programmes.

In the area of economic and trade development, South Africa is eager to strengthen the co-operation with the Malawi Investment Promotion Agency, through creation of a framework of co-operation, providing reliable investment information. Focus is particular on mining, textiles, agriculture and natural resources.

Malawi’s SADC responsibility is Forestry, Inland Fisheries and Wildlife. South Africa aims at strengthening the capacity of the Malawi Government to handle this portfolio.

Future Directions

The creation of a database providing information on South African know-how is the main objective for the future.

Level of Assistance

South Africa can provide bilateral assistance through three specific funds; the High Commission Fund; the Mission Training Fund; and the Technical Assistance Fund.

Assistance amounts to approximately USD 400,000 per annum.

Distribution of assistance in Malawi

Sectoral focus: Health, Human and Natural Resources

Geographical focus: Mainly Lilongwe

Contact Person and Address

H.E. the High Commissioner
High Commission of the Republic of South African
P.O. Box 30043
Lilongwe 3, Malawi

Tel: 783 722 Fax: 782 571

General Institutional Structure

Organisation of Development Assistance

The Secretary of State for International Development is the Minister responsible for all matters related to the British development assistance programme. The Department for International Development (DFID) implements the policies and programmes on behalf of the Secretary of State, under the stewardship of the Permanent Secretary. DFID has replaced ODA as the lead Ministry on Development issues in United Kingdom.

Management of the DFID programme to countries in Central Africa is delegated to DFID’s regional office in Harare, the British Development Division in Central Africa (BDDCA). BDDCA is responsible for the British aid programmes in Malawi, Mozambique, Zambia and Zimbabwe.

Global Policies and Priorities

British Aid Policy has been reviewed and in November 1997 the Government published a White Paper, which sets out British policy on International Development. The White Paper defines the goal of British development assistance as the elimination of poverty and the encouragement of economic growth which benefits the poor. This goal will be pursued by establishing partnerships with developing countries whose economic and social policies reflect commitment to creating sustainable livelihoods for poor people, promoting human development and preserving the environment. Progress towards these goals will be measured against the agreed DAC International Development Targets:

• A reduction by one half in the population of people living in extreme poverty by 2015.

• Universal primary education in all countries by 2015;
• Demonstrated progress towards gender equality and the empowerment of women by eliminating gender disparity in primary and secondary education by 2015;
• Reduction by two thirds in the mortality rates for infants and children under 5 and a reduction by three fourths in maternal mortality, all by 2015; and
• Access through the primary health care system to reproductive health services for all individuals of appropriate ages as soon as possible and no later than the year 2015.

The implementation of national strategies for sustainable development in all countries by 2005, so as to ensure that current trends in the loss of environmental resources are effectively reversed at both global and national levels by 2015.

Type of Assistance and Programming

All bilateral aid to the least developed countries, including Malawi, is in the form of grants. British aid does not work on a fixed programme cycle. The country funds are allocated and budgeted according to UK financial years (April-March). Annual aid talks with the Malawi Government review the current aid programme and future activities are agreed upon.

Most bilateral aid is tied to British goods and services, except where value for money considerations make such a condition impractical. In least developed countries, goods procured locally are exempt from this requirement. Tying rules do not apply to emergency aid goods and services.

Global Level of Assistance

The British Government, in its recently published White Paper, has reaffirmed its commitment to the UN target of spending 0.7% of GDP on development assistance. An increase in resources will begin in 1999/2000, moving towards the UN target from the current (1996) figure of 0.27% of GDP.  
 

Activities in Malawi

Programme Priorities in Malawi

Since 1993 the bilateral aid programme in Malawi has focused on five priority areas:

1. good government, with particular focus on three major democratic institutions; the police, the legal sector and the customs service (and since early 1997, the newly-formed Anti-Corruption Bureau);
2. economic reform, by supporting the IMF/World Bank structural adjustment programme through financial aid linked to the reimbursement of budgeted Government expenditure in key sectors such as education, and provision of support for public sector reform;
3. health sector through support to health sector reform, improving access to and quality of health services, particularly through reproductive health and contraceptive supply, the national safe motherhood initiative, and communicable disease control (tuberculosis and AIDS), and support to Central Medical Stores and Malawi College of Health Sciences;
4. education, again focusing on improved access and quality, in particular the primary sector, with an emphasis on improving the quality of teaching (training and supervision for teachers, head teachers and primary education advisers), and disseminating cost-effective and replicable methods of delivering quality education at the community level through the construction of 100 community schools across the country;

renewable natural resources where focus is on improving the food security of the smallholder farmer sector and assistance with land reform issues.

Future Directions

The White Paper on International Development provides a broad framework from which continued assistance to Malawi in the medium-term can be developed. In consultation and partnership with the Malawi Government, the Malawi Country Strategy Paper will be developed during 1998. Discussions remain at an early stage, but there will be an increased emphasis upon poverty elimination. Areas of support, building upon the current assistance programme, might include:

• improving access to and quality of reproductive health care services for women in Malawi, and to reduce infant and maternal mortality rates;
• improving educational opportunities for poor people, and particularly for women, at all levels; to help Malawians to acquire life-skills through activities such as adult literacy;
• improving access to safe water in Malawi, as part of DFID’s commitment to implement Agenda 21 principles on water management;
• improvement to basic infrastructure where appropriate and essential, such as rural feeder roads, sanitation, school and housing construction in remote areas;
• support for rural livelihoods, including the improvement of returns to smallholder farmers, and the establishment of safety nets for the rural poor, unable to secure sustainable livelihoods under current circumstances;
• continued support for public sector reform and improving the quality and efficiency of Government services. This might include support for public sector financial management as well as institutional and organisation development and capacity building;
• support for revenue generation, building upon the existing programme with Customs and Excise Department;
• continued financial aid linked to agreed policy and civil services performance measures; and

support to the legal and judicial sector and to help establish an effective Commission for Human Rights.

                                                                        USD million

Distribution of Assistance in Malawi

Sectoral focus:

Note: Support to Development Administration covers Good Government. In addition to the sectors included in the breakdown, ODA provides emergency assistance both in terms of relief and rehabilitation. Separately, and subject to conditionality, ODA also provides BOP assistance.

Geographical focus: No specific geographical focus

Contact Person and Address

H.E. the High Commissioner
British High Commission
P.O. Box 30042
Lilongwe 3, Malawi

Tel: 782 400  Fax: 782 652

General Institutional Structure

Organisation of Development Assistance

American ODA is administrated by the U.S. Agency for International Development (USAID). The State Department provides diplomatic and operational support. The programme is an integral part of the foreign policy. USAID is headed by an Administrator with the rank of Deputy Secretary of State who takes policy direction from and works closely with the Secretary of State.

There are four regional bureaux in USAID (Africa, Asia and the near East, Latin America and the Caribbean, CEEC and NIS). The regional bureaux report to the Administrator and the field missions report to the regional bureaux.

Global Policies and Priorities

A 1993 examination of long-term national assistance to developing countries, concluded that promotion of sustainable development in addition to humanitarian assistance should be a key element of its foreign policy. Simplified, aid can be divided into two categories; one supports US political and military objectives overseas and the other is intended to promote economic and social development.

To promote sustainable development USAID focuses on four strategic areas: (i) economic growth; (ii) environment; (iii) democracy; and (iv) health and population.

Cross cutting global themes include women in development and support for the private sector (the enabling environment, human resources development, privatisation and micro enterprises).

Geographical the USA supported close to 120 countries up until 1993. However as part of the overall cut in US ODA a number of missions and country programmes have been terminated. Future assistance will concentrate on three categories: countries that are committed to sustainable development policies; countries in transition, and emerging democracies or humanitarian assistance countries. It is expected that by the year 2000 USAID will be active in no more than 75 countries.

Type of Assistance and Programming

US aid is provided mainly as grants. Funding is made available through projects or as Non-Project Assistance (NPA) geared to bring about policy reforms.

The fiscal year is from October to September and the aid budget is approved by the US Congress. Budgeting is on an annual basis for the individual recipient countries with indicative budgets for the following two years.

The degree of tying of aid depends on the region. In Sub-Saharan Africa neither technical assistance nor financial aid is tied, which is an exception compared to other regions where the rules are less lenient. However, US procurement is always encouraged at the planning level and in total about 65% of bilateral aid reverts to the USA through procurement of capital equipment, goods and services.

In 1993 the bilateral multilateral ratio was 72/28. Since then it has increased in favour of bilateral aid and in 1996 it was 85/15.

Private Voluntary Organisations (PVOs) and non-US NGOs have become increasingly important partners in carrying out USAID’s programmes for humanitarian and sustainable development. Due to massive cuts in the ODA budget and the budget of USAID, the share of ODA channelled through American PVOs and indigenous NGOs is expected to increase to nearly 40% of foreign aid. In addition aid will be franchised to the private sector.

Global Level of Assistance

American ODA has experienced severe cuts during the past years. In 1995, net ODA fell by USD 2.6 billion in real terms to USD 7.3 billion or by 28%. The US has been relegated to the fourth position within the DAC group, after Japan, France and Germany after having been the world's largest donor for decades. The ODA/GDP ratio fell to 0.10% in 1995.

While contributions to multilateral agencies and in particular the UN agencies has plummeted, relief aid, enjoying wider public support than development assistance, will be maintained. It is poverty oriented aid that has suffered the most drastic reductions in history.

In FY 1996, ODA (excluding food aid) was cut by USD 800 million or 23%. For 1997 the approved aid budget is USD 12.2 billion. Aid to Sub-Saharan Africa is expected to remain at about 23% of bilateral allocations.  

Activities in Malawi

Programme Priorities in Malawi

US assistance to Malawi is currently based on the Country Strategic Plan 1995-2000. The plan operates with five strategic objectives; (i) to increase agricultural incomes on a per capita basis; (ii) to increase sustainable use, conservation and management of renewable natural resources; (iii) to increase adoption of measures that reduce fertility and risk of HIV transmission, including improved child health practices; (iv) to increase access to and quality and efficiency of basic education, especially for girls; (v) to strengthen and broaden the institutional base for democratic participation.

As regards the first objective, USAID is funding programmes in agriculture, forestry and transport. To promote the second objective, a natural resource programme with emphasis on management of natural resources and environmental support is funded. The third objective is supported through activities in health and social development. In the educational sector USAID focuses on basic education, and finally activities related to the fifth objective are concentrating on strengthening of democratic institutions.

Future Directions

The present strategy plan covers the period 1995-2000

Level of Assistance

In addition emergency food assistance totalling USD 29 million was provided between 1994-96.

Distribution of Assistance in Malawi

Sectoral focus:

Note: Support to Development Administration includes strengthening of democratic institutions.

Geographical focus: No specific geographical focus

Contact Person and Address

The Director
USAID
P.O. Box 30045
Lilongwe 3, Malawi

Tel: 782 455 Fax: 783 181