The African Development Fund (ADF) and its development partners have committed to mobilise $8.9 billion to its fund for 2023 to 2025 financing cycle to help Africa’s low-income countries.
This, it was gathered, is after a year of intense negotiations and a difficult global economic outlook.
Development Diaries understands that this is the largest replenishment in the history of the fund.
ADF is the concessional window of the African Development Bank (AfDB) which provides grants and soft loans to the continent’s low-income countries.
It is impactful in tackling the continent’s multiple development needs, including recovery from the Covid-19 pandemic, the effects of climate change, fragility, debt, and economic vulnerabilities.
The $8.9 billion replenishment package includes $8.5 billion in core ADF funding and $429 million for the newly created Climate Action Window.
ADF-16 core funding represents a 14.24 percent increase over ADF-15 of $7.4 billion; with Algeria and Morocco recently joining Angola, Egypt, and South Africa as contributing African countries.
‘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’, AfDB President Akinwumi Adesina, said.
‘This is the power of global partnerships and effective multilateralism in support of Africa’.
According to the bank, ADF-16 will support two strategic frameworks and operational priorities, including developing sustainable, climate-resilient and quality infrastructure; and governance, capacity building and sustainable debt management in recipient countries.
It will also focus on empowering women and girls as a condition for achieving inclusive and sustainable development.
Photo source: NRC