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The government introduces restrictions on Sida's payments in 2022

The government has decided to put a restriction on Sida's payments to development cooperation in 2022 by SEK 5.6 billion to be able to use these funds for refugee reception in Sweden.

Starting in April, Sida has been implementing the decision by reviewing all agreements with development partners, with the ambition of limiting the negative long-term consequences as far as possible. This includes safe-guarding support to smaller organisations, that are at risk of collapsing without Sida's support.

The government decision states that humanitarian assistance will not be affected. Sida is now developing a plan for how to implement the reductions in different countries and thematic areas. Some payments will be cancelled altogether, while others can be pushed forward to 2023.

Affects recovery after the pandemic

The restriction on Sida's payments will have an impact on people living in poverty and oppression. It affects all areas of our work, including Sida's collaborations on climate adaptation, gender equality, sustainable development and support to recovery from the global pandemic that has hit the poorest countries very hard.

These are countries that also face a sharp rise in food and energy prices due to the war in Ukraine. Many countries in Africa import a large proportion of certain foods from Ukraine and Russia in particular. The price of wheat has for example doubled since the war began.

– The budget restriction will have serious consequences for people living in poverty in various parts of the world. Even before the war broke out, the year 2022 was predicted to be an economically tough year in many parts of the world. The recovery after the pandemic had not had time to start properly in many low-income countries and the consequences of the war mean that another crisis is added on top of the pandemic, climate change and conflicts, says Carin Jämtin, Sida’s Director-General.

Published: April 19, 2022