Countries and organisations comprising the Strategic Partnership with Africa (SPA) last week agreed that levels of external development assistance to African countries need to be urgently increased, following a period of flatness in aid inflows, the World Bank said on Friday.

The SPA last week held its annual plenary meeting in Johannesburg, chaired by the World Bank, focusing on issues critical to reducing poverty and accelerating progress towards achieving the Millennium Development Goals.

Speaking at a media briefing on Friday, World Bank regional vice-president for Africa Gobind Nankani told journalists that, while the Commission for Africa had asked for a doubling of aid to the continent, the World Bank recognised that an immediate 60% increase in external development assistance would be absorbed by Africa's better-performing countries.

In 2002, external development assistance to the world's poorest continent amounted to €16-billion and remained largely flat, at €15-billion, in 2003 - these figures exclude debt relief. External development assistance figures for 2004 are not yet available.

Nankani pointed out that the challenges and opportunities first raised by the SPA are now high on the agenda of the international community.

“There is broad recognition of the need for 'shared growth', as well as dependable financial flows at higher levels and better quality. Unfortunately, the rhetoric seems to be ahead of actions. It's shocking that aid flows received by African countries are flat,” he commented.

Nankani also revealed that the World Bank supports the UK's plan for debt relief for the poorest countries in Africa.

The two-day SPA meeting also noted the importance of reaching a new global trade accord, with a phase-out of agricultural subsidies to level the playing field for Africa's exporters and create better market access, initially through less restrictive rules of origin. It is understood that agricultural subsidies total $1-billion a day within the European Union, Nankani observed.

He explained that the meeting called for the reduction of escalating tariffs for Africa's processed exports - the tariff on roasted coffee, for instance, is nine times the tariff on raw coffee beans. The meeting also called on rich nations to do their part to ensure the Doha Round of Word Trade Organisation trade negations lives up to the promise of being a 'development round' of talks.

Meanwhile, the SPA also agreed that private sector development is a driver for growth and job creation. The meeting noted that an important approach is the expansion of public–private partnerships and innovative financing approaches that can enable higher growth levels.

Nankani emphasised that investment in infrastructure and human capacity and development are key to private sector development, since weaknesses in these areas add to the cost of doing business.

He stated that the SPA agreed that there was strong evidence of positive progress in African performance, but Africa will require a substantial increase in the levels and predictability of development assistance if it is to fund the infrastructure requirements, social services and capacity needs necessary to reduce poverty significantly.