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German Government Provides a New Funding of EUR 182.6mn to Afghanistan

in Afghan Business

German Government Provides a New Funding of EUR 182.6mn to Afghanistan

At a virtual conference on Wednesday, the German government promised commitment to supporting Afghanistan and pledged to provide the Government of Afghanistan with a new amount of about EUR 182.6 million (about AFN 17.4 billion) for bilateral cooperation. 

The Deputy Minister of Policy, Ministry of Finance, Nazir Kabiri headed the Afghan delegation. Professor Claudia Warning, Director-General Middle East, Asia, Latin America, South-Eastern Europe and Eastern Europe, Federal Ministry for Economic Cooperation and Development (BMZ), headed the German delegation.

“We stand ready to work with the government and the many committed Afghans to contribute to a sustainable development of Afghanistan. We will only succeed in our joint efforts for a peaceful, socially just and economically strong Afghanistan if all actors are committed to a political solution to the ongoing conflict,” said DG Warning. 

The delegations agreed on the allocation of funding for development cooperation in 2021. 

Financial Cooperation projects will be allocated EUR 120 million (about AFN 11.4 billion) and Technical Cooperation projects EUR 47.6 million (about AFN 4.5 billion). An additional amount of EUR 15 million (about AFN 1.4 billion) is made available via the BMZ special initiative Tackling the Root Causes of Displacement – Reintegrating Refugees. The funds will be used to extend ongoing activities to improve access to basic services and legal assistance for refugees, returnees and IDPs.

BMZ is making further funding available directly to non-governmental organisations working with communities in Afghanistan. In addition, the German Federal Foreign Office provides substantial funding for stabilisation and humanitarian assistance. Germany is thus on track to fulfil its pledge at the Geneva Conference 2020 to provide a total amount of up to EUR 430 million (about AFN 41 billion) in civil assistance for Afghanistan in 2021.

“The friendship and good relations between Afghanistan and Germany have a long history of more than a century. The Government of Afghanistan acknowledges the assistance by the German Government and the German people for Afghanistan on its path to building a stable democracy and moving towards efficiency and self-reliance,” said Nazir Kabiri. 

Afghan-German development cooperation will take into account the newly developed eight National Priority Programmes (NPPs) and full effort would be made to align with the government priorities.  These NPPs are National Essential Infrastructure, National Human Capital, National Water and Resource Management, National Energy and Extractives, National Accountability and Digitalization, National Health, and National Financial Sector.

Afghanistan and Germany will jointly work to enhance governance, strengthen institutions and combat corruption. Germany expects that the human rights and fundamental freedoms of all Afghans be protected and strengthened, especially for women, children, all persons belonging to minorities and other groups at risk. This will ensure that all citizens can benefit from the economic, social, political and developmental achievements of the past 20 years and for the years to come.

These are also the principles that underlie both the mutually agreed Afghanistan Partnership Framework (APF) and the Afghanistan National Peace and Development Framework II (ANPDF-2). The German side encourages the Afghan side to take effective measures and make tangible progress in the implementation of ANPDF-2 and APF.

As in previous years, Germany has tied a part of its allocations to the Afghanistan Reconstruction Trust Fund (ARTF) to progress good governance. In addition to the funds committed today, Germany will make available up to EUR 70 million (AFN 6.6 billion) to be channelled via the ARTF. However, this share of funding is linked inter alia to improvements in the human rights situation, anti-corruption measures, sound public financial management and improvements in the civil service, including a strengthened role of women. The decision on the release of the funding (or parts of it) will be taken in November 2021.

The German side will expand its cooperation with reform partners in Afghanistan and will make greater use of incentives to promote transparency, ownership and a focus on development. The German side also emphasised the importance of the sustainable operation of all existing and new infrastructure facilities in order to ensure their functionality for the benefit of Afghan people.

Cooperation between Afghanistan and German began in 1957. Since then, the total volume of bilateral Technical and Financial Cooperation amounts to over EUR 4 billion (AFN 380 billion). The next negotiations on development cooperation between the Government of the Islamic Republic of Afghanistan and the Government of the Federal Republic of Germany are scheduled to take place in Berlin or Kabul in 2022. At the Geneva Conference on Afghanistan in November 2020, Germany promised continued support until 2024.


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