Reduce the number of individual investments by 20 per cent by 2016-17 to focus efforts and reduce transaction costs
Status: Achieved
This target was achieved on 1 July 2016 when the number of individual investments had reduced by 23 per cent.
Focusing on fewer, larger aid investments improves the efficiency and effectiveness of Australia’s aid program. Consolidation reduces the administrative burden on DFAT staff, partner governments and key delivery partners. Analysis conducted by the ODE also suggests that higher value investments perform better than lower value investments.
Figure 9: Progress on consolidation of aid investments
Table 3 presents further evidence of consolidation in DFAT’s aid administration over the three years from July 2013 to July 2016:
• the average size of aid investments has increased by more than 26 per cent
• the number of aid agreements (contracts and grant agreements) has decreased by 33 per cent
• the average size of agreements has increased by 90 per cent.
Table 3: Consolidation at the investment and agreement level
Year
|
Investments
|
Average Investment Value
|
Agreements
|
Average Agreement Value
|
July 2013
|
1319
|
$20.3m
|
3975
|
$4.1m
|
July 2014
|
1142
|
$22.8m
|
3465
|
$5.6m
|
July 2015
|
1080
|
$24.4m
|
2891
|
$7.1m
|
July 2016
|
983
|
$25.6m
|
2661
|
$7.8m
|
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