German Government Commits Funding of AFN 5.1 Billion
government consultations on cooperation between the Islamic Republic of Afghanistan and the Federal Republic of Germany in 2019 ended successfully. The German Ministry for Economic Cooperation and Development (BMZ) committed to invest about AFN 5.1 billion (EUR 59 million), focussing on good governance, sustainable economic development as well as urban development and municipal infrastructure. An additional AFN 8.7 billion (EUR 100 million) shall be allocated to the Afghanistan Reconstruction Trust Fund (ARTF). Since 2001, the German government has invested about AFN 345 billion (EUR 4.06 billion) in Afghanistan.
In return for investments, Germany expects the Afghan government to meet its commitments to carry out reforms when it comes to fighting corruption, preventing violence against women, promoting women’s rights and equal opportunities, as well as transparency in the mining and extractives sector. Therefore, AFN 5.2 billion (EUR 60 million) of the envisaged total commitment of AFN 8.7 billion (EUR 100 million) allocated to ARTF will be subject to the implementation of jointly agreed reforms. Furthermore, AFN 3.5 billion (EUR 40 million) of bilateral cooperation to be invested in the energy sector are conditional on concluding operation and maintenance guidelines for existing and planned infrastructure projects – to ensure their sustainability.
The Afghan Ministry of Finance’s Deputy Minister for Policy, Ms. Naheed Sarabi, commented, ‘The Afghan Government aims to achieve higher economic growth, develop friendly relations with neighbouring countries, increase our revenues, create employment, reduce poverty, and end violent conflict, as outlined in the Growth Strategy and Afghanistan National Peace and Development Framework (ANPDF). Reaching these goals will enable us to achieve self-reliance as a nation. To get there, we are planning and investing in priority projects and programmes as defined in the National Priority Programmes (NPPs) that are long term, sustainable and that connect Afghanistan to the region and beyond. I also would like to express my gratitude on behalf of Afghanistan to your government and your people for the continuous support that development orientation we have received since the beginning of our partnership. Germany has played a key role in the reconstruction of Afghanistan and our cooperation has contributed to substantial achievements in the implementation of our joint development agenda.’
Germany remains committed to contribute to sustainable development, peace, and stability in Afghanistan. In his opening speech, the Head of the Afghanistan/Pakistan division of the German Federal Ministry for Economic Cooperation and Development (BMZ), Dr Henning Plate, emphasised, ‘Germany remains committed as a reliable long term partner for the development of Afghanistan and its people – as we always have in the past. Germany will continue to support development in Afghanistan with funding up to EUR 430 million a year until 2020.’
The Afghan-German Cooperation aims at improving living conditions and future prospects of Afghan citizens – so they may enjoy lives not overshadowed by poverty, displacement, violence or extremism. Today, Germany committed to continue its support in fighting corruption, promoting girls and women, strengthening Afghan civil society, reforming public administration and fostering the enabling environment for private sector engagement.
To ensure that development benefits all Afghan citizens, priorities include creating lasting income-generating opportunities and supporting economic growth as well as improving electricity and water supplies. These objectives are fully aligned with priority policies, such as the ANPDF and NPPs.
Further, the Afghan-German Cooperation will expand cooperation with reform partners on the Afghan side and increasingly make use of incentives to promote transparency, Afghan ownership and development orientation.
Germany’s development strategy is entitled: Strengthening Afghan Ownership, Position Paper on Development Cooperation with Afghanistan. The strategy and further project information can be accessed online: www.gc-afg.de