Devex explores EuropeAid's funding priorities in Africa

The European Union is one of the most important development actors in Africa. By virtue of their geographical proximity, the two regions are closely connected economically and geopolitically. As part of its EuropeAid Funding Insights series, Devex has undertaken an exclusive analysis of EU planned funding activities in Africa over the course of more than a year, to reveal trends in where and how the money is being distributed. EU relations with African countries are governed by numerous cooperation agreements and funding modalities. The most comprehensive is the “Cotonou Agreement,” a partnership deal between the EU and countries in Africa, the Caribbean and the Pacific. Since its revision in 2010, the Cotonou Agreement has become the basis of many of the priorities in the African Multi-Annual Action Programs — that is, programs of planned projects agreed between EU delegations and stakeholders in partner countries. A more specific relationship has also been organized under the Africa-EU Partnership, a formal channel through which the EU and Africa, represented by the African Union, work together. From January 2016 through April 2017, Devex gathered and analyzed the funding commitments, development priorities and procurement modalities released by EuropeAid in its “Action Fiches” — public documents which detail the EU’s planned development activities. You can explore these activities individually or in aggregate through our interactive visualization and in the Devex Funding Activity Feed. For more information about how we compiled and analyzed the data click here, and for a background guide on EuropeAid and how it functions click here. Funding earmarked for activities in Africa during this timeframe amounts to 2.7 billion euros ($3 billion). This number is indicative, as the budget figures may change as EuropeAid and its partners move closer to procurement. It is also doesn’t include development work funded by other departments of the European Commision, such as the Directorate-General for Neighbourhood and Enlargement Negotiations. What does analysis of this 2.7 billion euros ($3 billion) of planned funding tell us? There are many different instruments EuropeAid uses to fund African development programs, and it’s important for implementers seeking that funding to understand the different purposes of those instruments. Here, we review some of the key funding instruments through which EuropeAid plans to fund these activities in Africa, and we analyze how each instrument’s funding in our data is distributed geographically, sectorally and by management agency. We found that more than half of the money for projects in Africa planned during 2016 and the first part of 2017 has been channeled through the EU Emergency Trust Fund for Africa, with migration as a key priority. The European Development Fund and Development Cooperation Instrument also emerge as key funding instruments for this period. In addition, we found that a majority of funds will be indirectly managed, typically by government agencies. The EU Emergency Trust Fund The EU Emergency Trust Fund for Africa, or EUTF, was signed into being by European and African institutions in November 2015 to address the causes and consequences of irregular migration within and from African nations. As of April 2017, the EU and its member countries have pledged over 2.6 billion euros ($2.9 billion) to the trust fund, of which approximately 1.6 billion euros ($1.8 billion) has already been approved for current and future EUTF programming, according to EuropeAid. These 1.6 billion euros ($1.8 billion) can be found in our data, channeled through one of the EUTF’s three geographically-focused “windows:” Sahel and Lake Chad, the Horn of Africa, and Northern Africa. These are regions which the EU has identified as constituting the major sources and routes of Europe-bound migration. New programming continues to be funded out of the EUTF, such as 59 million euros allocated to four new projects in the Horn of Africa window last month. According to our data, countries in the Sahel and Lake Chad window have to date been allocated the most funding, with 169 million euros ($189 million) of programming planned in Sudan, 162 million euros ($181 million) in Senegal, 153 million euros ($171 million) in Niger and 152 million euros ($170 million) in Mali. Ethiopia, with 120 million euros ($134 million) allocated, has also been a key recipient of funding. Migration was the most-funded sector within our EUTF data, but addressing a challenge as complex as irregular migration involves development activities across many sectors, from projects seeking to create agricultural and pastoral jobs in vulnerable, rural communities in Senegal, to activities improving agro-market linkage and resilience in Niger. As a result, sectors such as social development and food security figure prominently in our EUTF funding data, although they are classified separately to migration. For implementers working in these countries or specializing in these sectors, the first step to finding opportunities in EUTF funding is knowing who controls it. Of the 1.51 billion euros ($1.69 billion) in EUTF funding in our dataset, 40 percent — or 601 million euros ($672 million) — will be “directly managed,” meaning that EuropeAid itself will run the procurement process and select grant and tender winners. The other 60 percent — or 1.023 million euros ($1.14 million) — will be “indirectly managed.” For these funds, EuropeAid will entrust procurement to other organizations, referred to as management agencies. The most relied-upon management agencies for indirectly managed EUTF funds are the Deutsche Gesellschaft für Internationale Zusammenarbeit, the Agence Française de Développement, and the International Organization for Migration. These agencies will manage 166, 137, and 117 million euros ($185, $153, and $130 million) worth of funding, respectively. The European Development Fund The European Development Fund, or EDF, is the primary instrument through which the EU funds economic, social and human development activities in 79 African, Caribbean and Pacific countries. It is currently in its 11th iteration, covering the years 2014 to 2020, with 30.5 billion euros ($34.1 billion) of funding committed for that period. Unlike other instruments, the EDF is not funded by the EU General Budget but by direct and voluntary contributions made by EU member states. Our dataset includes 817 million euros ($913 million) of funding allocated to EDF planned programming in Africa. Unlike the EUTF, this funding reaches all sub-regions of the continent, has different sectoral priorities and is almost entirely indirectly managed. Africa-bound EDF funding in our data is geographically and sectorally diverse. However, in many cases, all the funding for a single sector goes to programs in a single country. For example, all health-related funding will go to a 145 million euro ($162 million) health project in the Democratic Republic of Congo, to be implemented by the DRC government and UNICEF. Similarly, Uganda monopolizes all EDF funding for rural development, economic development, transportation and social development. Institutional development is the one sector with geographically-diverse funding, spreading 128.6 million euros ($143.8 million) across five Southern African countries. A key difference between EDF and EUTF funding in our data is the management modality. Whereas 60 percent of EUTF funds were indirectly managed, 89 percent of EDF funds are so. National governments comprise the largest group of management agencies for our EDF data: 49 percent of indirectly managed funds, or 404 million euros ($451), will be handed to African governments. To win funding managed by local governments, implementers will need to understand and follow local legal frameworks, and will likely need to find in-country partners to work with. The Development Cooperation Instrument The Development Cooperation’s, or DCI, budget — 19.6 billion euros ($21.9 billion) for the 2014 to 2020 period — is allocated to both geographical and thematic programs. However, within Africa, all 143 million euros ($160 million) worth of planned activities are channeled through two of DCI’s thematic programs: The Global Public Goods and Challenges Program and the Pan African Program. The European Commission will manage procurement for 65 percent, or 93 million euros ($104), of these funds. The GPGC is the DCI program focused on climate, the environment, energy, migration, food security and human development. Examples of GPGC programs include 5.2 million euros ($5.8 million) for the sustainable development of the Senegal River Basin and 20.5 million euros ($22.9 million) for “evergreen agriculture” in the Sahel region. The PanAf program, created in 2014, supports implementation of the Africa-EU Partnership with trans-regional programs, and frequently complements the programs of other instruments, such as the EDF. In 2016, the PanAf Annual Action Program included just two projects: 29 million euros ($32 million) for a livestock production project, which will be managed by the African Union Inter-African Bureau for Animal Resources (AU-IBAR); and 10 million euros ($11 million) for an African Academic Mobility Scheme to enhance cooperation between African and European higher education institutions. Other instruments Here, we’ve analyzed the major instruments contributing to EuropeAid’s work in Africa, together accounting for 2.651 billion euros ($2.97 billion) worth of planned projects between January 2016 and April 2017. This leaves us a little short of our dataset’s total EuropeAid funding for Africa of 2.7 billion euros ($3.02 billion). The remainder comes from smaller but nonetheless important contributions to other instruments, including the EU Bêkou Trust Fund for the Central African Republic, the Instrument Contributing to Peace and Stability, and the Instrument for Nuclear Safety Cooperation. To analyze the data yourself, check out our interactive visualization of EuropeAid funding for Africa, our guide to EuropeAid jargon, its organization and project cycle, and our many types of EuropeAid funding data. You’ll find early information from the European Commission and details of each EuropeAid planned activity in the Devex Funding Activity Feed; planned funding in our Programs data; funding opportunities in our Tenders and Grants data; and awards and shortlists in our Contract Awards data. Raquel Alcega, Devex’s development data team lead, also contributed reporting to this article. Coming soon: watch out for our interactive guides to EuropeAid funding priorities in Asia and in Latin America, Eastern Europe and other regions. Check out more practical business and development advice online, and subscribe to Money Matters to receive the latest contract award and shortlist announcements, and procurement and fundraising news.