Increased Africa aid to enhance financial transparency

Norway’s minister of international development, Heikki Holmås, and president of the African development bank group, Donald Kaberuka, signed the agreement in Oslo last month.

The agreement outlined a 30 million NOK (approximately AU $5 million) increase in Africa support.

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Norway’s parliament building in Oslo during wintertime
Source: The Norwegian perspective

“Norway is seeking to help turn Africa’s ‘resource curse’ into a ‘resource blessing’ by supporting the negotiation of better contract terms,” minister of international development Heikki Holmås said in a government press release.

Many African developing countries are rich on natural resources, but the population still live in poverty.

“Norway will support African countries in the negotiation of fair agreements with international companies that are exploiting their natural resources,” Holmås said.

Africa

Source: zatrokz

To ensure that the aid is spend on addressing legal issues between multinational companies and authorities in African countries the work was delegated to African legal support facility (ALSF).

“This work also enhances financial transparency surrounding contracts which is crucial to be able to uncover and stop illicit financial flows. Every year ten times as much money disappears out of developing countries through illicit financial flows as is received in the form of aid and development support,” Holmås said.

The contribution will be used in the African development bank group’s strategy for 2013-2022. The two main objectives of this strategy is inclusive African growth and transition to sustainable growth. In this strategy there will be particular emphasis on supporting fragile states, agriculture and food security, and gender.

Several countries in Africa are currently requesting the support of the African legal support facility, so far the ALSF is working on projects with 20 African countries.

“The aim is for the countries to strengthen their own revenues and economies, and in the long term for them to be able to manage without aid,” Holmås said.

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