The African Renaissance and International Co-operation Fund Act (Act No 51 of 2000) was promulgated on 22 January 2001. The Act provides for the establishment of the African Renaissance and International Co-operation Fund for the purpose of enhancing international co-operation with and on the African Continent and to confirm the Republic of South Africa's commitment to Africa.
The establishment of the African Renaissance and International Cooperation Fund will enable the South African government to identify and fund, in a proactive way:
• Co-operation between South Africa and other countries, particularly African countries;
• The promotion of democracy, good governance;
• The prevention and resolution of conflict;
• Socio-economic development and integration;
• Humanitarian assistance, and;
• Human resource development.
Apart from the transfer of the unexpended money currently in the Economic Co-operation Promotion Loan Fund, the new Fund will also appropriate funds from Parliament. Furthermore, it will comprise money received from the repayment of any loan made from the new Fund; interest received on any loan made from the new Fund, including interest derived from any investment of money standing to the credit of the new Fund; and/or money accruing to the new Fund from any other source, such as donor funds.
The introduction of the African Renaissance and International Co-operation Fund Act is historic for three reasons:
• For the first time the concept of "African Renaissance", is encapsulated in legislation in South Africa, and, for that matter, by a legislature on the African Continent;
• Secondly, the Act introduces, for the first time, a framework and basis for the South African government to identify and fund, in a proactive way, projects and programmes aimed at the six regulatory framework principles mentioned above, by the granting of loans or rendering of other financial assistance within the African Renaissance framework.
• Thirdly, the Act introduces, also for the first time as far as the South African government is concerned, a mechanism through which donor (third party) funds could be channeled to recipients and/or joint tripartite projects.
The African Renaissance and International Co-operation Fund will be multilaterally oriented, and will provide for proactive involvement in projects and programmes involving organisations and parties other than the governments of countries (although not excluding the governments of countries).
The new Fund is under the control of the Director-General: Foreign Affairs. An Advisory Committee will be established to make recommendations to the Ministers of Foreign Affairs and Finance on the disbursement of funds, as spelt out in the Act. The Committee will comprise the Director-General: Foreign Affairs, three members to be nominated by the Minister of Foreign Affairs and two members to be nominated by the Minister of Finance.
Funds which are provided for the promotion of democracy and good governance and/or the prevention and resolution of conflict shall be made available upon the recommendation of the Advisory Committee and approval by the Minister of Foreign Affairs after consultation with Minister of Finance.
Loans or other financial assistance, excluding the promotion of democracy and good governance and/or the prevention or resolution of conflict, shall be granted or rendered in accordance with an agreement entered into between the parties and a project proposal, upon the recommendation of the Advisory Committee, for approval by the Minister of Foreign Affairs after consultation with the Minister of Finance.
BUDGET:
During the year ended 31st March 2009, an amount of R476 million was invested by the Fund.
