By Mark Smulian | 24 June 2013
The African Development Bank has approved a multi-donor trust fund to support value for money, sustainability and accountability programmes on the continent in the face of rising public concern about how money is spent.
A US$5.7m fund has been created with the support of the government of Norway and the Global Alliance for Vaccines and Immunisation (GAVI). It will be administered by the ADB and several other donors have expressed interest in pooling resources into the fund.
The fund has been launched because African governments spend on average half their public budgets on social services, but large inefficiencies in the use of resources in education and health have both damaged people and prospects for inclusive economic growth.
With foreign aid in decline, achieving greater value for each dollar invested is critical, the ADB said.
It added that, as seen in the ‘Arab Spring’, African citizens want greater transparency and accountability in both delivery of social services and management of public resources.
Projects funded will be aimed at: building the skills of African leaders on the value for money programme; enhancing evidence-based planning and budgeting; developing mechanisms to improve efficiency, effectiveness, transparency and accountability; and promoting equitable and sustainable financing of social services.
The fund’s launch came as United Nations secretary-general Ban Ki-moon marked United Nations Public Service Day by encouraging countries to focus on good governance and efficient public administration.
‘Addressing today’s inter-linked challenges requires sound, forward-looking public policies and transparent, accountable governance structures that embody solidarity with the poorest and most vulnerable,’ he said.
