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.

Allocation of the Swiss international cooperation budget to the five guarantee credits. © FDFA

"Humanitarian Aid" credit

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


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)

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p. 90):

  • Emergency relief: 80%
  • Prevention and reconstruction: 20%

Guarantee credit "Development cooperation"

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

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p.90)

Development cooperation:

  • FDFA bilateral development cooperation: 40%
  • Global programmes and initiatives: 12%
  • Core contributions to Swiss NGOs: 7%
  • General contributions to multilateral organisations: 41%

Further information on "Core contributions to Swiss NGOs"

Allocation of the core contributions to Swiss NGOs by credit

87 per cent of the core contributions to Swiss NGOs were granted from the "Development cooperation" credit. The rest is attributable to the "Humanitarian Aid" and "Development Cooperation East" commitment credits.

For more information on the contractual obligations of the IC working with Swiss NGOs, see the Federal Council report in fulfilment of the postulate 20.4389 Schneider-Schneiter of 2 Decmeber 2020

 

Geographical allocation "FDFA Bilateral Development Cooperation"

59% of SDC bilateral development cooperation went to sub-Saharan Africa, 25% to Asia, 11% to North Africa and the Middle East and 5% to Latin America.
Geographical breakdown of FDFA’s bilateral development cooperation. © FDFA

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p.90):

FDFA Bilateral Development Cooperation:

  • of which for sub-Saharan Africa: approx. 60%
  • of which for North Africa and the Middle East: approx. 11%
  • of which for South and South-East Asia: approx. 28%
  • of which for Latin America: approx. 1%

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.

Allocation of "General contributions to multilateral organisations"

32% of multilateral contributions go to UN organisations and global funds and networks. 67% go to international financial institutions.
Allocation of multilateral contributions to the guarantee credits. © FDFA

This does not include contributions to humanitarian multilateral partner organisations (including, for example, the World Food Programme or the ICRC), which are financed from the ‘Humanitarian Aid’ engagement credit.

80% of contributions to international financial institutions were used to replenish the funds from the World Bank's International Development Association (IDA).
(see Table 2, Switzerland's International Cooperation Strategy 2021-24, p.57)

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p.90)

General contributions to multilateral organisations:

  • of which for international financial institutions: 66%
  • of which for UN organisations, global funds and networks: 34%

Guarantee credit "Economic development cooperation"

55% of the Economic Development Cooperation guarantee credit goes to bilateral measures. 45% to global and regional measures.
Guarantee credit "Economic development cooperation". © FDFA

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)

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p. 90):

Economic development cooperation:

  • Bilateral measures: 60%
  • Global/regional measures: 40%

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.
Breakdown of the "Cooperation with Eastern Europe" guarantee credit. © FDFA

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p.90):

Cooperation with Eastern Europe:

  • Development cooperation, Eastern Europe (SDC): 66%
  • Economic development cooperation, Eastern Europe: 34%

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.
Thematic breakdown of the "Peace and human security" guarantee credit. © FDFA

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p.90):

Thematic allocation "Peace and human security":

  • Measures to promote peace: 60%
  • Human rights policy: 25%
  • Humanitarian policy and Switzerland’s foreign policy on migration: 15%
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.
Geographical breakdown of the "Peace and human security" guarantee credit. © FDFA

Indicative allocation for the entire strategy period

(see Annex 6, Switzerland's International Cooperation Strategy 2021-24, p.90):

Geographic Breakdown "Peace and human security":

  • Sub-Saharan Africa: 25%
  • North Africa and Middle East: 45%
  • OSCE area: 15%
  • Other countries: 15%

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.

Reporting year
Reporting year
Reporting year
2021 2022 2023
Climate expenditure 450 m. CHF 469 m. CHF 519 m. CHF (11.04.2024)
Share of climate expenditure in total IC funds 19% 18% 19%
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