The UAE announced its contribution of $200 million to support low-income nations through the Poverty Reduction and Growth Trust (PRGT). This aligns with its effort to achieve UN Sustainable Development Goal 1 (SDG 1) to eradicate poverty.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, announced the initiative during the recently concluded International Monetary and Financial Committee (IMFC) Meeting in Morocco.
Moreover, Al Hussaini said, “The UAE is committed to realizing the UN SDGs by all means possible”. In addition, he said that the initiative “falls within the UAE’s strategy and vision for cooperation and coordination with regional and international development organizations and institutions”.
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Committed to Africa
The IMFC Annual Meetings held in Africa were a rare opportunity to address issues related to development. Meanwhile, the UAE took the opportunity to restate its commitment to Africa, foreign aid, reducing poverty, and promoting peace and prosperity.
The UAE has been providing foreign aid to boost economic growth in developing nations. Compared to its GDP, the UAE tops the list of donors when it comes to official development assistance.
“The history of UAE’s foreign aid began with its foundation. It is now a vital financial, commercial, and logistical hub for the Middle East, Africa, and South Asia, thus linking its economy to those nations’ economies” added al Hussaini.
The PRGT was established to confront the obstacles challenging low-income nations. It stands as a pivotal vehicle within the IMF. It offers concessional financing to low-income countries facing inflation, food insecurity, escalating debt risks, and steep borrowing costs. The IMF has acted by increasing interest-free lending through the PRGT to aid the most underprivileged and fragile member states. A total of 69 nations are eligible to access funding from the PRGT.
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