AfDB and Luxembourg Strengthen Partnership Ahead of ADF-17 Replenishment

The discussions underscored Luxembourg’s continued confidence in the Bank’s ability to deliver inclusive and climate-resilient growth, especially in fragile and low-income economies that depend on ADF resources.

The African Development Bank (AfDB) Group and the Government of Luxembourg have reaffirmed their commitment to deepening cooperation in support of Africa’s sustainable development, as preparations advance for the seventeenth replenishment of the African Development Fund (ADF-17)—the Bank’s concessional window for its lowest-income and most vulnerable member countries.

A Strategic Partnership for Inclusive Growth

The renewed commitment followed a bilateral meeting between AfDB President Dr. Sidi Ould Tah and Luxembourg’s Minister of Finance, Gilles Roth, on the sidelines of the 2025 World Bank and IMF Annual Meetings in Washington, D.C. The meeting, the first between the two leaders since Dr. Ould Tah assumed office in September, focused on strengthening long-standing collaboration between Luxembourg and the AfDB Group to accelerate economic transformation across Africa.

The discussions underscored Luxembourg’s continued confidence in the Bank’s ability to deliver inclusive and climate-resilient growth, especially in fragile and low-income economies that depend on ADF resources.

“Africa’s development needs remain considerable, particularly in areas such as education, energy, technology, infrastructure, and the fight against climate change,” said Minister Roth. “Luxembourg’s financial centre, with its expertise in sustainable finance and impact investing, is well positioned to channel private capital toward these priorities.”

Luxembourg’s Record of Development Cooperation

Luxembourg has earned global recognition as one of the world’s leading contributors of official development assistance (ODA), consistently allocating 1% of its gross national income (GNI) to development—well above the 0.7% target set by the United Nations and the OECD Development Assistance Committee.

Under the ADF-16 cycle, Luxembourg contributed €12.7 million, marking a 10% increase over its previous commitment. This funding supported key initiatives in climate action, governance, gender equality, and private sector development, demonstrating Luxembourg’s faith in the Fund’s impact and accountability.

Advancing ADF-17: Mobilizing Resources for Africa’s Future

The ADF-17 replenishment cycle, scheduled for December 2025, aims to mobilize additional concessional resources for transformative projects that enhance resilience, create jobs, and accelerate the continent’s transition to a green and inclusive economy.

“Luxembourg has been a steadfast partner to the African Development Bank Group,” said Dr. Ould Tah. “Its leadership in sustainable finance and its commitment to effective multilateralism continue to make a real difference across the continent. As we move toward the ADF-17 pledging session, Luxembourg’s partnership will be key to mobilizing resources that drive resilience, inclusion, and shared prosperity.”

The AfDB President stressed that the ADF’s next cycle will focus on empowering women and youth, climate-smart infrastructure, digital transformation, and sustainable agriculture, aligning with the Bank’s High 5 priorities and the African Union’s Agenda 2063.

Beyond Concessional Financing: A Broader Partnership

Luxembourg’s engagement with the African Development Bank extends beyond traditional concessional finance. The country is also a founding contributor to several AfDB-managed facilities that promote financial innovation and market development across Africa, including:

• The Capital Markets Development Trust Fund, which helps African nations strengthen their regulatory frameworks and deepen local capital markets.

• The Africa Digital Financial Inclusion Facility (ADFI), aimed at expanding access to digital finance and supporting fintech solutions that reach underserved populations, especially women and rural entrepreneurs.

Through these instruments, Luxembourg plays a vital role in fostering private sector growth, financial inclusion, and sustainable investment ecosystems across the continent.

The ADF’s Legacy and Impact

Established in 1972, the African Development Fund has become one of the most effective vehicles for supporting Africa’s low-income countries. To date, the Fund has financed nearly 3,000 projects worth more than $45 billion, improving lives and livelihoods in 37 African countries, almost half of which are fragile or conflict-affected.

Its impact spans key sectors — including:

• Energy: Expanding access to clean and affordable power.

• Agriculture and Food Security: Boosting productivity and resilience among smallholder farmers.

• Infrastructure: Building roads, bridges, and digital connectivity.

• Education and Health: Enhancing access to quality services for millions of people.

Luxembourg’s Role in Mobilizing Climate Finance

Luxembourg’s commitment to climate finance and green innovation positions it as a key ally in helping Africa achieve its sustainable development and decarbonization goals. The country’s expertise in green bond frameworks, impact investing, and blended finance models can help bridge the continent’s $100 billion annual climate finance gap.

“We will continue working alongside the African Development Bank to strengthen Africa’s investment environment and build a more equitable, resilient, and sustainable future,” said Minister Roth.

Toward a Stronger Partnership for Shared Prosperity

As Africa grapples with the intersecting challenges of climate change, debt vulnerability, and post-pandemic recovery, the AfDB and Luxembourg’s partnership offers a model for effective multilateral cooperation. By aligning development finance with sustainability goals, the two institutions are working to transform Africa’s natural, human, and financial capital into engines of growth and stability.

Dr. Ould Tah emphasized that the ADF-17 cycle will focus on expanding the Fund’s catalytic role — leveraging partnerships to mobilize additional private investment while continuing to deliver concessional resources to the continent’s most vulnerable communities.

“The African Development Fund remains one of the most impactful instruments for inclusive development,” Ould Tah said. “Through continued support from partners like Luxembourg, we can ensure that Africa’s development is not just a promise, but measurable progress for generations to come.”