Mapping international funding flows to support forest and environmental sectors in Central Africa

Abstract

Financing of the forestry and environmental sectors in Central Africa (CA) was selected by representatives of Central African Forest Commission (COMIFAC) member countries as the focus for a policy analysis paper. The Strengthening and Institutionalization of the Central African Forest Observatory (RIOFAC) project, funded by the European Union, also prioritises this subject. RIOFAC is designed to support the Central Africa Forest Observatory (OFAC) in its efforts to reinforce national capacity to collect, analyse and disseminate relevant information for decision making on forest and forest-reacted sectors. Forests and environment financing is a central issue in global discussions on to how to combat climate change. Numerous funding initiatives have been established to support forest and environmental sectors. For example, 34 projects were internationally funded in the period 2000–2007 (OECD, 2019); 16 of these projects were funded by bilateral sources and 18 by multilateral sources. The objective of this study was to map out international funding flows, which will support the forest and environmental sectors in CA. This will serve as background for the policy analysis paper. Specific objectives include: (a) analysis of financing flows directed to CA over the last decade in support of nature conservation, sustainable forest management and climate change; (b) presentation of themes or areas covered by the current financing flows and identification of possible imbalances and gaps; (c) provision of a comparative analysis between financing flows to CA and those directed to Tropical America (Amazon Basin) and Tropical Asia (Southeast Asia); and (d) identification of needs and opportunities for financing the forest and environmental sectors of CA. The study used desk research, flow analysis, and identification of needs and opportunities for official development assistance (ODA) to CA. The desk research identified data sources, which include Organization of Economic Cooperation and Development (OECD) statistics and annual reports of the International Tropical Timber Organization (ITTO). The flow analysis focused on donors, recipients, areas covered by the flows, imbalances and gaps in flows. It compared flows to CA with those of other tropical zones (Amazon Basin and Southeast Asia). The OECD commitment data were used instead of disbursement data, because the latter may not be complete and updated for all donors. Analysis of funding flows The bilateral and multilateral flows to forests and the environment totaled approximately USD 2 billion over 2008–2017. EODA accounted for more than three-quarters of the total FEODA. Over the study period, the evolution of bilateral and multilateral flows was unsteady, fluctuating widely. Since 2015, both flows have steadily decreased. The top five total FEODA donors, in descending order, were Germany, EU, GEF, United States and World Bank. The top five bilateral FEODA donors, in descending order, were Germany, United States, France, Japan and Sweden. Finland and Denmark were completely absent in CA during the study period. The top five multilateral FEODA donors, in descending order, were EU, GEF, World Bank, CIF and AfDB. GCF and Adaptation Fund were completely absent in CA during the study period. Germany is top 1 donor of total FEODA (bilateral FEODA and multilateral FEODA).