Making reforms deliver results: EU provides €125 million funding for Afghanistan

The European Commission today announced €125 million funding for Afghanistan to support the government's reform agenda towards sustainable economic development and state building.

European Commissioner for International Cooperation and Development, Neven Mimica said: 'Afghanistan is at a critical juncture for the success of its state-building process. Our programme is linked to the achievement of jointly-identified reform priorities. It will contribute to improving service delivery to citizens, better management of public finances, strengthened accountability and respect for human rights - in particular the rights of women and children.'

The Minister of Finance of the Islamic Republic of Afghanistan, Eklil Hakimi added: 'The National Unity Government is committed to deliver on its ambitious reform agenda to expedite economic growth, strengthen good governance and create jobs so that especially the youth of our country can see a viable future for themselves. The EU's incentive programme is an important building block for our efforts towards increased self-reliance through mutual accountability with our international partners.'

The Director in the Directorate General for International Cooperation and Development, Pierre Amilhat of the European Commission and the Minister of Finance of the Islamic Republic of Afghanistan, Eklil Hakimi, have signed a Financing Agreement for a €125 million programme to safeguard and increase the Afghan Government's capacity for public service delivery linked to specific development reforms. This support is in line with EU's current bilateral development programme for Afghanistan for the period 2014 - 2020 and the commitments given by the international community at the 2012 Tokyo Conference to provide the Afghan Government with more flexible funding linked with progress on specific achievements as enshrined in the 'Self-Reliance through Mutual Accountability Framework (SMAF)'.

At today's Foreign Affairs Council meeting, Minister Hakimi presented the draft Afghanistan National Development Policy Framework (ANDF), which is set to guide the Afghan Government over the coming years. Commissioner Mimica welcomed the Government's openness to engage in a frank dialogue with its international partners to lead up to the finalisation of a credible, realistic and at the same time ambitious development strategy ahead of the Brussels Conference on Afghanistan scheduled for 5 October 2016.

Background

What is the Self-Reliance through Mutual Accountability Framework?

At the 2012 Tokyo Conference on Afghanistan, donors committed to provide the Afghan Government with more flexible, on-budget funding in conjunction with progress on specific economic development achievements. The initial 'Tokyo Mutual Accountability Framework (TMAF)' enshrined these commitments and specified a set of reform targets for the Afghan Government, allowing donors to incentivise measurable achievements in a coordinated manner.

In September 2015, the TMAF was replaced by the 'Self-Reliance through Mutual Accountability Framework (SMAF)', with new commitments for specific reform deliverables including on anti-corruption, governance, rule of law and human rights as well as fiscal sustainability and public finance management. Progress against those jointly formulated targets is regularly assessed. The EU and other donors channel their incentive funding contributions upon achievement of reform targets through the World Bank's Afghanistan Reconstruction Trust Fund (ARTF).

EU support to Afghanistan

Since 2002, the EU has been one of the major donors providing official development and humanitarian assistance to Afghanistan. Between 2002 and 2014, the EU has provided more than €3.3 billion in assistance to Afghanistan. The EU's development programme for the time period 2014-2020 focuses on vital sectors for growth and social stability, such as rural development and agriculture, health, rule of law and strengthening democracy and accountability.

Brussels Conference on Afghanistan

On 5 October, the European Union and the Government of Afghanistan will co-host the Brussels Conference on Afghanistan. This conference will gather up to 70 countries and 30 international organizations and agencies. It will provide a platform for the Government of Afghanistan to set out its vision and track record on reform. For the international community, it will be the opportunity to signal sustained political and financial support to Afghan peace, state-building and development.

For more information

EU development cooperation with Afghanistan

Commissioner Neven Mimica

Brussels Conference on Afghanistan

Contact details

Alexandre POLACK ([phone])

Sharon ZARB (+ 32 2 29 92256)