Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

This is a money donation. We also have a new food aid programme in the Africa agrifood fund, which I am pleased to note the Department designed. The new scheme will be very valuable for Irish companies and the development aid programme. Under the programme, the Department and the Department of Foreign Affairs co-sponsor a fund that will assist Irish food companies which agree to establish permanent operations in developing countries. It is a pilot scheme focused initially on Kenya and Tanzania. We are trying to persuade Irish companies which would not normally consider investing in Africa because of political uncertainty and the possibility of social unrest to view Africa in a new way. We will grant-aid investment and provide political support in the countries that are supporting the programme. This means that companies establishing operations in countries that we believe will be the growing economies will have a significantly increased chance of success, although it is not guaranteed.

The rate of economic growth in Tanzania currently stands at approximately 15%. It and other countries in Africa buy many high-end food products from Ireland and will do so in future. For this reason, we want to become familiar with and understand these markets as well as have a presence in them through Irish companies.

This is a strategic way of spending public money and is good from a development aid perspective because the know-how and skill sets in Irish companies can deliver significant benefits to local communities. It is a win-win scenario with only a relatively small amount of money involved - €1 million each from my Departments and the Department of Foreign Affairs. The programme is initially confined to two African countries but there have already been significant demands from other African countries to extend the scheme. It has also generated significant interest from Irish food companies.