A global coalition of donors pledged to support the structural transformation of African economies and the African Development Bank’s High Five priorities by agreeing on US $7.06 billion over the next three years to support development projects and programs in the 38 lower income African countries supported by the African Development Fund (ADF).
“We are appreciative of the support of the donors of the African Development Fund, especially in the difficult global economic environment.” said the President of the African Development Bank Group, Dr. Akinwumi Adesina. “I also appreciate the strong support of our donors for the vision, direction and ongoing reforms of the Bank Group to deliver greater developmental impacts for Africa. The African Development Fund will continue to play a significant role to build resilience for the economies of low income countries in Africa, especially those experiencing conditions of fragility or vulnerability” added Adesina.
The African Development Fund will shift more resources to support the private sector in the region, even as it helps countries dealing with fragility to address their most pressing developmental challenges. The increased resources devoted to these countries reflect their strong need for concessional funding. Recognizing the private sector’s key role in the transformation of African economies, the Fund will allocate over US $ 280 million to the Private Sector Credit Enhancement Facility. This Facility will leverage approximately US $ 840 million of private sector financing, of which at least 50% will be in higher risk countries. The Fund will continue to promote financial instruments that crowd in resources from the private sector, such as financial guarantee products.
The ADF is the concessional window of the African Development Bank Group, which contributes to poverty reduction and economic and social development in low-income African countries. The funding will support the five key priorities of the African Development Bank Group: Light up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the quality of life for the people of Africa. In addition, it will address four critical cross-cutting areas: fragility, governance, climate change and gender.