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Germany Pledges EUR 240mn in Aid to Afghanistan

in Afghan Business

Germany Pledges EUR 240mn in Aid to Afghanistan

The German Federal Ministry for Economic Cooperation and Development (BMZ) commits to invest an overall amount of about AFN 21.3 billion (EUR 240 million) for financial and technical cooperation in 2020.

Further funding is provided by BMZ directly to non-governmental organisations, and in addition the German Federal Foreign Office is supporting Afghanistan with up to AFN 16 billion (EUR 180 million) for stabilization projects as well as AFN 1.7 billion (EUR 19.4 million) for humanitarian assistance in 2020.

These contributions will fulfill Germany’s pledge at the 2016 Brussels conference, where it committed to providing up to EUR 430 million per year in overall civilian assistance.

“Improving the lives of Afghan men and women, boys and girls is our joint goal. Together, we are seeking to create jobs, fight hunger and poverty, strengthen Afghan institutions, and build and maintain infrastructure,” said State Secretary of BMZ Martin Jaeger.

This is the second commitment of funding between the German and Afghan governments this year. Already in June 2020, in order to support Afghanistan in its response to the COVID-19 pandemic, Germany committed an amount of AFN 5.77 billion (EUR 69.8 million) earlier than planned from the total amount of AFN 21.3 billion (EUR 240 million) for this year. This included AFN 3.3 billion (EUR 40 million) as a contribution to the Afghanistan Reconstruction Trust Fund (ARTF). Based on progress made by the Government of Afghanistan in relation to the Geneva Mutual Accountability Framework (GMAF) and considering the special circumstances this year in regards COVID-19 and peace negotiations, Germany is now allocating an additional amount of AFN 4.9 billion (EUR 55 million) to ARTF. This allows for an overall ARTF contribution of AFN 8.46 billion (EUR 95 million) in 2020.

Germany is the second-largest donor to Afghanistan and has made significant contributions to the reconstruction of Afghanistan since 2001.

“Bringing peace has remained a top priority of the Afghan people and the government. Thanks to the sacrifices of our people, our national security and defence forces and those of our international partners, the government has demonstrated its commitment to peace by taking unmatched confidence building measures,” said Afghanistan’s Acting Finance Minister Abdul Hadi Arghandiwal.

Since the last government negotiations in 2018, the focus areas of Afghan-German development cooperation have been refined to three new major topics. Priorities now include peaceful and inclusive societies, training and sustainable growth for decent jobs, responsibility for our planet in terms of climate and energy as well as cooperation outside of these priority areas. The activities of German development cooperation in these areas aim to improve the capacity of government institutions, fight corruption, improve access to law, engage the population in decision-making processes, improve resilience and social cohesion among the Afghan people, and create lasting income-generating opportunities. Furthermore, they aim to improve the supply of renewable energy and adapt to climate change through improved management of scarce water resources, reforestation and the sustainable use of natural resources.

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