African Development Fund mobilizes $8.9 billion for Africa’s low-income countries, highest in its 50-year history | African Development Bank

After a year of intense negotiations and a difficult global economic outlook, the African Development Fund (ADF) development partners have agreed to allocate a total package of $8.9 billion to the 2023 to 2025 funding cycle. It is the largest addition to the Fund’s history. ADF is the African Development Bank Group’s concessional counter, which provides grants and soft loans to the continent’s low-income countries.

The $8.9 billion replenishment package includes $8.5 billion in ADF core funding and $429 million for the newly created Climate Action Window.

ADF-16 core funding represents a 14.24% increase over ADF-15’s $7.4 billion. It is a strong endorsement of the African Development Fund and its impact in addressing the continent’s many development needs, including recovery from the Covid-19 pandemic, the effects of climate change, vulnerability, debt and economic vulnerabilities.

Algeria and Morocco contributed to the fund for the first time. They join Angola, Egypt and South Africa on the list of contributing African countries. The Kingdom of Morocco hosted the fourth and final meeting of the New Complement (ADF16).

ADF delegates applaud the announcement of the ADF-16 Replenishment Pack.

An elated president of the African Development Bank Group, Akinwumi Adesina, applauded the impressive financing package. He said: “I am impressed by the tremendous commitment and effort of ADF donor countries in ramping up support for Africa’s low-income countries, especially at this time of major economic, climate and fiscal challenges. This is the power of global partnerships and effective multilateralism in support of Africa.”

This addition comes as the African Development Fund celebrates its 50th anniversary^e anniversary since its inception in 1972. The Fund has made a significant impact and in the past five years alone has helped connect 15.5 million people to electricity, 74 million people have access to improved agriculture and 42 million people have access to to water and sanitation. In addition, 50 million people have gained access to improved transport. The Fund’s resources also contribute to the construction and rehabilitation of 8,700 kilometers of roads.

ADF-16 supports two strategic frameworks and operational priorities: development of sustainable, climate-resilient and high-quality infrastructure; and governance, capacity building and sustainable debt management in recipient countries. It will also focus on empowering women and girls as a precondition for achieving inclusive and sustainable development.

The addition of ADF-16 will have even more impact over the next three years. It will help connect 20 million people to electricity, 24 million people will benefit from improvements in agriculture, access to water and sanitation for 32 million people, and improved access to transportation for 15 million people.

Adesina went on to say, “These are impressive developmental impacts. These expected effects of the ADF will advance the African Union’s Sustainable Development Goals and Agenda 2063. They will enable the African Development Fund to build on its reputation as the second best concessional finance institution in the world. We will deliver more, better, more efficiently and in cooperation with bilateral and multilateral partners. We will promote a climate-smart, resilient, inclusive and integrated Africa.”

“African low-income countries are the most vulnerable and least prepared to tackle climate change,” Adesina said. “The climate action window and the commitment to provide 40% of core funding from the ADF 16 Climate Finance Replenishment will help build climate resilience in Africa,” he added.