By Judith Ugwumadu | 14 July 2014

The European Union is set to launch its first-ever multi-donor development trust fund to support crisis-hit Central African Republic, making an initial contribution of €64m.

Announcing the trust fund today, the European Commission said it would create a coordinated international instrument for ‘linking relief, rehabilitation and development’, aimed at filling the gap between short-term relief and long-term development aid.

The instrument is expected to contribute to the reconstruction of the country for its 4.6 million people, in particular restoring national and local administrations, restabilising economic activity and essential public services such as, electricity, transport, health and education.  

The former French colony has endured decades of instability and is one of the least developed countries in the world. In March last year, a government coup triggered widespread ethno-religious violence and humanitarian crisis affecting the whole population. More than 2.5 million Central Africans are in need of humanitarian aid, while over 388,000 people have fled to neighbouring countries. 

EU development commissioner Andris Piebalgs, who will co-sign the agreement that sets up the fund with the French, German and Dutch governments, said: ‘The Central African Republic is experiencing an alarming humanitarian, political and security crisis that needs a realistic and pragmatic approach in helping the people of the country as effectively as possible.

‘We must think and act outside the box, collectively, in order to link emergency management, rehabilitation and development solutions.’

Kristalina Georgieva, the European Union commissioner for international cooperation, added: ‘Linking relief, rehabilitation and development is essential if we want to make a long-term difference in a fragile situation like the CAR crisis.’

The commission said that the activities of the trust fund would also help neighbouring countries to overcome the consequences of the crisis in CAR.

Initial contributions to the EU trust fund include:

€39m from the European Development Fund, and €2m from the EU   Humanitarian Aid budget, both managed by the European Commission. 

€5m in 2014, and an additional €5m for 2015 from France.

€5m in 2014, and an additional €5m for 2015 from Germany.

€3m from the Netherlands.

The European Commission said a donor conference was planned for later this year to mobilise additional funding.