The African Development Bank Group (AfDB) has raised a record $11 billion for the African Development Fund (ADF), which provides low-cost loans to low-income countries to support development projects. This is the largest amount in the Fund’s history, achieved despite cuts in global aid budgets and financial pressures worldwide. The funds, raised from 43 partners for the 17th replenishment (ADF-17), marks a 23 per cent increase over the previous cycle. ALSO READ: New AfDB chief outlines four-point vision for African development In a first, 23 African countries directly contributed to the ADF, providing resources for their own financing, the group said in a statement following the London pledging session. Together, they pledged $182.7 million, including 19 countries making their first-ever contributions, AfDB said. “This is not just a replenishment; it is a turning point. In one of the most difficult global environments for development finance, our partners chose ambition over retrenchment, and investment over inertia,” said Sidi Ould Tah, President of the African Development Bank Group. Ould Tah noted that this demonstrates Africa is no longer just a recipient of concessional finance; it is now a co-investor in its own future. The Fund will use its resources to attract private investment, share risks, and support larger projects. It will also use new tools, like the Market Borrowing Option and hybrid capital, AfDB said. Additionally, the funding will support 37 low-income and fragile African countries, focusing on expanding access to energy, strengthening food systems and food security, investing in people through education and health, promoting regional trade and integration, and building resilient infrastructure. ALSO READ: AfDB to invest over Rwf430bn in Rwanda’s agriculture Special support will continue for countries facing fragility and vulnerability, including through the Transition Support Facility, ensuring that the most vulnerable nations get the help they need. Currently, every dollar invested through the Fund brings in more than $2.50 in additional funding, and this is expected to grow under the new model. “This allows concessional finance to do what it must do best, absorb risk, unlock private investment, and accelerate development at scale,” Ould Tah said.
