After a year of intense negotiations and a difficult global economic outlook, development partners of the African Development Fund (ADF) have agreed to commit a total package of $8.9 billion to its 2023 to 2025 financing cycle. It is the largest replenishment in the history of the Fund. ADF is the concessional window of the African Development Bank Group, providing grants and soft loans to the continent’s low-income countries.
The $8.9 billion replenishment package includes $8.5 billion in core ADF funding and $429 million for the newly created Climate Action Window.
The core budget for ADF-16 is up $7.4 billion, or 14.24%, from ADF-15. It is a resounding endorsement of the African Development Fund’s effectiveness in addressing the numerous development needs of the continent, such as recovery from the Covid-19 pandemic, the effects of climate change, fragility, debt, and economic vulnerabilities.
It also saw two nations Algeria and morocco give to the fund for the first time. They join the ranks of Angola, Egypt, and South Africa on the list of contributing African countries. It was the kingdom of Morroco that hosted the final meetings of the new replenishment.
Akinwumi Adesina, President of the African Development Bank Group said “I am impressed by the huge commitment and efforts of the ADF donor countries in stepping up support for Africa’s low-income countries, especially at this time of great economic, climate and fiscal challenges. This is the power of global partnerships and effective multilateralism in support of Africa.”
This replenishment coincides with the 50th anniversary of the African Development Fund’s founding in 1972. The Fund is generating considerable impact and in the past five years alone, it has helped to link 15.5 million people to power, has provided 74 million people to access improved agriculture, and has 42 million people access to water and sanitation. In addition, 50 million people have gained access to improved transport. Additionally, 8,700 kilometres of roads are being built and repaired with the aid of the Fund’s finances.
