CommunicationPublished on 22 May 2024

Allocation of funds within the five credits

The message on the International Cooperation Strategy 2021-2024 provided the SDC, SECO and AFM with five credits totalling CHF 11.25 billion and an indicative allocation to themes, modalities or regions. The crises and conflicts of recent years have required numerous programme adjustments with significant financial implications. Nevertheless, after three years it is clear that the majority of the specifications have been met.

The five guarantee credits of the IC budget. Development cooperation, humanitarian aid, economic development and peace and human security.

«Humanitarian Aid» credit

81 per cent of the Humanitarian Aid guarantee credit is earmarked for emergency aid. 19 per cent for prevention and reconstruction.

15 per cent of the «Humanitarian Aid» guarantee credit was earmarked for regular and extraordinary contributions in favour of the ICRC headquarter. (see Table 2, Message on IC Strategy 2021-2024. p. 57)

Guarantee credit «Development cooperation»

Breakdown of guarantee credit for development cooperation. 10% Swiss NGOs, 11% global programmes, 40% bilateral cooperation, 39% multilateral organisations.

Phasing out process from Latin America and the Caribbean

For the first time, the SDC is withdrawing from an entire region. It had been active in Latin America and the Caribbean for over 60 years. The withdrawal was gradual. Commitments were reduced from year to year. The declared aim was to organise this process responsibly in order to secure the results in the long term. What has been achieved should continue after the end of SDC funding and the processes initiated should be continued by other actors (further information on the phasing out process).

The Covid-19 pandemic has hit Latin America and the Caribbean particularly hard. At the beginning of the strategy period, the focus was therefore unexpectedly on humanitarian aid and the adaptation of existing programmes to the context of the pandemic, which led to difficulties in the phase-out process. Project funding has been steadily reduced over the last three years and the overall process will be completed on schedule by the end of 2024.

Guarantee credit «Economic development cooperation»

55% of the Economic Development Cooperation guarantee credit goes to bilateral measures. 45% to global and regional measures.

7% of the «Economic development cooperation‘» guarantee credit was accounted for loans/shareholdings and 2 % for investment contributions to developing countries. (see Table 2, Dispatch on the International Cooperation Strategy 2021-2024, p.57)

Guarantee credit «Cooperation with Eastern Europe»

61 per cent of the guarantee credit for Development Cooperation East is implemented by the SDC.39 per cent by SECO.

Guarantee credit «Peace and human security»

66% of the guarantee credit for peace and human security goes to peacebuilding. 23% goes to human rights policy and 11% to humanitarian policy and foreign migration policy.
38% of the guarantee credit for peace and human security went to North Africa and the Middle East. 28% to Sub-Saharan Africa. 20% to the OSCE area. 14% to other countries.

Climate

Combating climate change and adapting to its consequences is a thematic priority of the International Cooperation Strategy 2021-2024. Compared to the previous strategy period, funding in this area should therefore be increased to CHF 400 million per year (around 15 per cent of IC funding) by 2024. This expenditure will be financed from the four commitment credits available to the SDC and SECO.

The table below illustrates that the funds deployed in the climate sector are constantly increasing and that the funding target has been achieved.

Documents

Contact

Swiss Agency for Development and Cooperation (SDC)
Eichenweg 5
3003 Bern