What the major bilateral and multilateral donors funded in 2022

We faced a number of crises this year — from the Russian invasion of Ukraine, historic droughts and floods in Asia and Africa, soaring energy costs, to an unprecedented food crisis. The outlook for next year is not great either, with a looming global recession that seems unavoidable. At the forefront of all of these are the donors and implementers. But despite the growing need for development assistance, we have seen some key donors going the opposite way — with the United Kingdom cutting aid by 30%, and Germany cutting its 2023 development budget by €190 million ($202.6 million.) In this article, Devex looked into official reports, press releases, and news articles — including those published on our website and others, primarily Donor Tracker and the United Nations Office for the Coordination of Humanitarian Affairs Financial Tracking Service, or FTS, data — to identify what the major bilateral and multilateral donors funded and prioritized in 2022. The FTS data gets updated daily, so figures and percentages used in this article may differ slightly from the website. Bilateral donors France French aid has been increasing in the last seven years. France’s development budget in 2022 is set at $16.7 billion — 0.56% of its gross national income, or GNI, and slightly higher than its original goal of 0.55%. Its official development aid, or ODA, is expected to increase further in the coming years, reaching the 0.7% mark by 2025. France is among the leading donors in climate, and several significant contributions in this area were made this year. In February, the French Development Agency, along with the European Investment Bank and KfW Entwicklungsbank, committed €4 billion under the Clean Oceans Initiatives. During the 27th United Nations Climate Change Conference, or COP 27, France reiterated its commitment to spend $6 billion annually on climate change. France also made a significant contribution to humanitarian aid, amounting to $328.4 million in 2022 so far, based on FTS data. Of this, $51.9 million went to Syria, $34.3 million to Ukraine, and $15.1 million to Burkina Faso. Germany In 2019, Germany’s ODA accounted for 0.7% of its GNI, hitting the U.N.’s target ratio. This increased further to 0.73% in 2020, then 0.74% in 2021. The country ranked next to the United States in 2021 by ODA volume, with $30.1 billion. COVID-19 spending boosted the increase in 2020 and 2021, and while the deprioritization of pandemic-related aid was expected to decrease Germany’s 2022 ODA, the ongoing refugee crisis will now likely inflate the final figure. However, the outlook for 2023 is concerning, with the federal government announcing a budget cut on aid. This year, Germany made several large commitments to climate change: €2 billion for forest conservation; €1 billion — along with other donors — to support the African Union’s climate change mitigation measures; €170 million seed funding for the Global Shield Initiative launched during COP 27; and €40 million for the AfDB’s Climate Action Window. On global health and food security, it recently allocated €530 million to the World Food Programme to support food security measures in 27 high-risk countries. It also pledged €100 million to the Coalition for Epidemic Preparedness Innovations and €72 million to the Global Polio Eradication Initiative. So far, Germany’s humanitarian aid in 2022 amounted to $2.4 billion. Ukraine got $277.9 million, followed by Yemen, with $235.8 million, and Afghanistan, with $184.4 million. Japan This year, Japan has set a number of records. In January, the country pledged a $3.4 billion contribution to the International Development Association for poverty reduction — its biggest contribution to date. A few months later, in August, the country unveiled its plan to spend $30 billion throughout Africa over the next three years — a $10 billion increase from its previous commitment in 2019. Health has been among its priorities, and Japan made several significant commitments outside the COVID-19 response. This includes a $1.8 billion pledge toward the establishment of a vaccine research and development institution for public health emergencies — which increased to $2 billion a few months later — and $300 million to Coalition for Epidemic Preparedness Innovations for current and future pandemics. For humanitarian aid, the country committed $1.7 billion in 2022 so far, with $146.6 million to Ukraine, $120.2 million to Afghanistan, and $46.8 million to Syria. Although the biggest Asian bilateral donor commits to increasing its aid spending in 2023, its 2022 ODA recorded an 8.9% cut. United Kingdom It’s been another bad year for U.K. aid — from the delayed publication of the government’s international development strategy, two changes in leadership and foreign secretary, an initial zero pledge during Global Fund replenishment event, aid freeze on nonessential ODA, to a £1.7 billion ($2.1 billion) cut on the Foreign, Commonwealth & Development Office’s budget for the 2022 fiscal year. The U.K. recently published its Autumn Statement, which shows an additional £2.5 billion that will help cover the costs of hosting refugees until 2024. But unlike most major donors, it has decided to count all refugee costs as ODA, which further strains its budget for overseas programs. The report also suggests that U.K.’s aid will likely remain at the 0.5% ODA-to-GNI range until 2028. The U.K. has recorded a number of setbacks this year, highlighting its further decline as a leader in international development aid: • Failure to make a pledge during the Nutrition for Growth Summit in December 2021. Then in February of the following year, it announced a £1.5 billion commitment — way lower than the £2.6 billion to £5 billion it spent between 2013 and 2020. • In April, it was criticized for the slow disbursement of humanitarian assistance to Ukraine, with only £60 million spent out of the £220 million initial commitment. Based on the December FTS data, the U.K. has already disbursed £151.7 million out of its £185.9 million commitment to UNOCHA’s appeals. It also announced in June the rechanneling of £1 billion unspent climate ODA to military assistance to Ukraine. • After initially failing to make a pledge, the U.K. committed £1 billion to the Global Fund. This is £400 million less than in 2019. • A £1.4 billion commitment during the 20th replenishment of World Bank’s IDA was a 54% cut from 2019. • A £160 million commitment to CEPI between 2022 and 2026 was 37% less than the commitment made between 2017 and 2021. United States The U.S. was the largest source of ODA in 2021, and with a $56.1 billion foreign affairs budget included in the F.Y. 2022 proposal, it’s likely it will retain its ranking. It is also the biggest source of humanitarian aid in 2022, committing a total of $14.5 billion, or 45.2% of the total funding tracked by UNOCHA. In May, the U.S. House of Representatives passed the $40 billion Ukraine emergency funding bill, which includes an allocation for humanitarian response and the food crisis. In June, the U.S. Agency for International Development announced $331 million in assistance to address food and humanitarian needs in Latin America and the Caribbean. However, later that month, congressional members raised concerns that none of the allocated $5 billion food assistance included in the $40 billion budget has been spent. As of November, $13 billion had been allocated in direct assistance to Ukraine. Localization remains a key target for USAID, with several programs launched this year to help achieve its ambitious 25% goal. This includes the launching of the Local Capacity Strengthening Policy, which should help increase engagement with local organizations; a regional localization initiative in sub-Saharan Africa; and the Centroamérica Local — a $300 million project to address the irregular migration to the U.S. from El Salvador, Guatemala, and Honduras. Multilateral donors African Development Bank One of the leading providers in Africa, AfDB’s most recent work program and budget document for 2022 to 2024 highlights its focus on agriculture, energy, improving the quality of life, industrialization, and integration in the region. AfDB approved a number of country-level and regional projects, some of which are co-financed by other multilateral institutions. Among its biggest projects are: • $25 billion financing for climate change in the next five years. • $15.6 billion for the construction of the Lagos-Abidjan highway corridor to promote connectivity in West Africa. • $3.3 billion for the construction of the Isaka-Kigali Railway in Tanzania and Rwanda. • $3 billion investment to support Africa’s vaccine manufacturing capacity. • $1.5 billion for the African Emergency Food Production Facility, which will help 20 million African smallholder farmers affected by the global food crisis. Asian Development Bank With operations in 40 countries, ADB remains one of the biggest lending institutions in Asia — funding projects in climate, education, gender, governance, and health, among others. In 2021, its total commitment amounted to $22.8 billion. So far this year, the bank has started the implementation of about 130 projects and approved another 127 projects. Among its biggest are: • Up to $18 billion in policy-based lending between 2022 and 2024, to help countries in addressing development financing gaps. • A $9.4 billion loan to Bangladesh in the next three years for its post-pandemic recovery. • $5 billion financing for disaster resilience in Central Asia. • $4.3 billion for the South Commuter Railway Project in the Philippines. • Up to $2.5 billion in flood relief support to Pakistan. European Union The EU’s aid budget is estimated to be worth more than €15 billion annually, channeled through a number of agencies, which includes the Directorate-General for International Partnerships — its leading department for international development. In December 2021, the EU laid out its plan to spend over €26 billion on international cooperation between 2021 and 2027. Averting a global food crisis is among its priorities in 2022. In June, a proposal was made to redirect a €600 million fund from the European Development Fund to humanitarian food aid in Africa, the Caribbean, and the Pacific. This brought the EU’s total humanitarian food assistance in 2022 to €950 million — a third of the EU’s total humanitarian budget. So far, the EU’s total humanitarian commitment in 2022 is worth $2.5 billion, with Ukraine, Turkey, and Yemen the primary beneficiaries. Other significant development funding includes: • €1.3 billion until 2027 for economic diversification in Nigeria. • €715 million in contributions to the Global Fund. • €300 million macro-financial assistance to support economic recovery in Tunisia. • €125 million for energy and agricultural initiatives in Malawi. Inter-American Development Bank In 2021, IDB set a record level of financing of $23.4 billion, the second time it breached the $20 billion mark since 2020. However, its latest Program and Budget Execution Report, published in June, shows that its programming slightly dipped in the first half of the 2022 fiscal year. New approvals amounted to $3.2 billion, $500 million less than in 2021, while disbursement was at $3.6 billion, $600 million less than the previous year. Currently, the Latin American bank has 628 active projects, worth $57.9 billion. Data from the Devex funding search shows that IDB prioritized social and economic development and the environment in 2022. Among its biggest funding offers are: • $50 billion, to be made available until 2026, to support climate action goals in Latin America and the Caribbean. Included as partners are the Development Bank of Latin America, the Caribbean Development Bank, and the Central American Bank for Economic Integration. IDB and its private-sector arm, IDB Invest, provided over $26 billion in climate financing between 2016 and 2021. • $1.2 billion to support agricultural production chains in Brazil. • $1.1 billion to support decarbonization in the energy sector in Argentina. • $1 billion for productivity and sustainable development in Chile. • $810 million for water resources and water security in Argentina. World Bank Since its establishment, the World Bank has funded over 12,000 projects in 189 countries, making it one of the biggest donors in the development sphere. Based on its data portal, the bank has 522 active projects in the fiscal year 2022. Based on its annual report, the World Bank committed $104.4 billion in loans, grants, equity investments, and guarantees in the fiscal year 2022 — up 5.6% from the previous year. Disbursement also increased by 10.6% — from $60.6 billion to $67 billion. In Africa alone, the bank committed $38.5 billion. Here are some of the bank’s highlights in 2022: • Up to $170 billion financing, from April 2022 to June 2023, to help countries curb the effects of multiple crises — from COVID-19, the global food crisis, to the war in Ukraine. • As of November, the bank has mobilized $17.8 billion in emergency funding to Ukraine, including commitments from other donors. Of this, $11.4 million has already been disbursed. • A total of $26.2 billion in climate financing in 2022. Of this, $12.9 billion went to adaptation — its highest to date. • In May, the bank announced $30 billion of finance — including $12 billion in new projects — to help address the global food crisis. A number of projects have been approved since then: $2.3 billion to increase food systems resilience in Eastern and Southern Africa; $500 million to strengthen food security in Egypt; and $315 million for the second phase of the West Africa Regional Food Systems Resilience Program. 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