What You Need to Know
The African Development Fund has successfully raised $11 billion from 43 international partners, marking its largest resource replenishment since its inception in 1972. This initiative, which includes contributions from 23 African nations, aims to support vulnerable and low-income countries across Africa in areas such as energy, food security, and infrastructure development.
Africa. The African Development Fund, the concessional financing arm of the African Development Bank Group, announced it has raised $11 billion from 43 international partners in its largest resource replenishment since its establishment in 1972, despite global financial pressures and declining aid budgets.
For the first time, 23 African countries contributed $182.7 million, five times the amount from the previous round, which the President of the African Development Bank, Akinwumi Adesina, described as a qualitative shift that positions Africa as a partner in financing its future.
The new round adopted an innovative financial model that involves borrowing from markets and utilizing instruments such as hybrid capital, with concessional financing used to absorb risks and attract private investments. Each dollar invested allows for more than $2.5 in co-financing.
International partners also announced additional commitments, including $800 million from the Arab Bank for Economic Development in Africa and $2 billion from the OPEC Fund for International Development, enhancing the Fund’s capacity to implement transformative projects.
The resources will be directed to 37 fragile and low-income African countries to support energy, food security, human capital, regional integration, and infrastructure, while continuing support through the transition mechanism.
The announcement was made during a joint session hosted by the United Kingdom and Ghana in London, where officials confirmed that the success of the round reflects international confidence in the Fund’s direction and Africa’s ability to achieve widespread results.
Established in 1972, the African Development Fund serves as the concessional arm of the African Development Bank, focusing on providing financial assistance to the continent’s poorest nations.
Over the years, it has played a crucial role in funding development projects aimed at improving economic conditions and fostering sustainable growth in Africa. The recent funding round reflects a growing recognition of the need for innovative financing solutions to address the continent’s challenges, particularly in light of global financial pressures.
