The paper reports on a workshop on commodity aid and counterpart funds in Africa, held at IDS, Sussex, in January 1991. Counterpart funds are local currency obtained from the sale of commodities or foreign exchange received as aid and over whose use the donor retains some control.
They are of growing importance in Africa, accounting for over 20 per cent of government expenditure in some cases. The workshop resulted in new guidelines on the economic consequences of counterpart funds and on management procedures. It also produced guidelines on the monetisation of project food aid.