The African Legal Support Facility (ALSF) has received £2.6 million from Norway and the UK to boost debt management capacity and other activities in low-income countries over the next two years.

The Norwegian government, through its Agency for Development Cooperation, provided 20 million Norwegian kroner (around £1.6 million) to support the 2021 and 2022 work programs of the ALSF. On the other hand, the Foreign, Commonwealth & Development Office of the United Kingdom is providing a £1 million grant to the ALSF, which will go to supporting debt management capacity in low-income African countries. The funding forms part of a cooperation agreement signed by the two parties.

The UK grant is in line with the G20 Debt Service Suspension Initiative, supported by the IMF and the World Bank, and comes as African countries continue to implement urgent measures to manage the spread of the COVID-19 pandemic and its socio-economic impacts, including the strain on their debt portfolios.

The Director of the ALSF, Stephen Karangizi said the grants were timely and would enable his agency to respond effectively to African countries’ requests for legal and technical support.

“The consistent commitment of the Norwegian and UK governments to the ALSF’s mission is commendable and demonstrates their status as dependable development partners, especially in a challenging period for African countries. These grants will promote sustainable investments and transactions to improve the lives of the people of Africa”.

The ALSF previously received a £7 million grant from the United Kingdom, while Norway has since 2013 cumulatively allocated 75 million Norwegian kroner (around £6.3 million) to support the ALSF’s annual programs.

In a related development, the Netherlands Ministry for Trade and Development Cooperation is also extending a €6 million grant to the African Legal Support Facility (ALSF) to support the ALSF’s work that provides legal and technical services to low-income countries to give them more clout in commercial dealings. The funding is expected to be disbursed over a three-year period.

The Director of the ALSF, Stephen Karangizi thanked the Netherlands, a shareholder of the African Development Bank, for its strong support over the years.

“The assistance will help the ALSF to better respond to the impacts of COVID-19 and help countries to recover much faster to enhance sustainable, inclusive development in Africa”.

Since 2013, the Netherlands has cumulatively provided €15.5 million to the ALSF to ensure that African countries achieve maximum economic value for their resources. The funds provided by the Netherlands enabled the ALSF to successfully assist many African governments to strengthen their legal expertise and negotiating capacities, particularly in the areas of natural resources and extractives.

Created by the African Development Bank in 2010, the ALSF supports governments in negotiating major commercial transactions, providing legal and technical assistance in public-private partnership projects across the oil and gas, mining and energy sectors, and covering sovereign debt issues and creditor litigation. The Facility has supported African governments to negotiate 53 key commercial contracts valued at $97.8 billion.