The African Development Fund (ADF) has mobilised $8.9 billion for Africa’s low-income countries, the highest replenishment by the fund in its 50-year history.
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% increase over ADF-15 of $7.4bn. It is a strong endorsement of the African Development Fund and its impact 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.
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 meetings of the new replenishment (ADF16).
An elated President of the African Development Bank Group, Akinwumi Adesina applauded the impressive funding package. “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,” said Adesina.
Advancing SDGs in Africa
Adesina said the impressive development impacts will advance the Sustainable Development Goals and the Agenda 2063 of the African Union. “They will allow the African Development Fund to build on its reputation as being ranked the second-best concessional financing institution in the world. We will deliver more, better, efficiently and in partnerships with bilateral and multilateral partners. We will foster a climate-smart, resilient, inclusive, and integrated Africa.”
“African low-income countries are the most vulnerable and least prepared to tackle climate change. The Climate Action Window and the commitment to provide 40% of the core financing of the ADF 16 replenishment towards climate finance will help to build climate resilience in Africa,” said Adesina.
ADF is the concessional window of the African Development Bank Group, providing grants and soft loans to the continent’s low-income countries.
