ADF Secures $11bn Boost, Marking Shift to Investment-Driven Development

This record-setting mobilisation—the largest in the Fund’s 50-year history—comes despite a period of global fiscal tightening, shrinking aid budgets, and rising economic uncertainties.

The African Development Fund (ADF), the concessional financing arm of the African Development Bank (AfDB) Group, has achieved a historic milestone by securing $11 billion from 43 development partners for its 17th replenishment cycle (ADF-17). This record-setting mobilisation—the largest in the Fund’s 50-year history—comes despite a period of global fiscal tightening, shrinking aid budgets, and rising economic uncertainties.

The accomplishment represents a 23% increase over the previous replenishment, signalling renewed confidence in Africa's development trajectory, the AfDB’s strategic leadership, and a transformed financing approach that prioritises investment, risk-sharing, and scalable impact.

AfDB President Dr. Sidi Ould Tah hailed the replenishment as a defining moment, stating:“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.”

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Africa Emerges as a Co-Investor in Its Own Development

For the first time in ADF history, African countries have collectively stepped forward as direct contributors to the concessional financing pool.

• 23 African nations pledged $182.7 million, a five-fold increase from ADF-16.

• 19 countries contributed for the first time.

• Contributions reflect a growing commitment to self-determination and financial responsibility.

Dr. Ould Tah underscored the significance of this shift:“Africa is no longer only a beneficiary of concessional finance. Africa is a co-investor in its own future.”

This change strengthens domestic ownership, enhances accountability, and signals a structurally different financial era for the continent.

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A New Era: Concessional Finance as a Platform for Investment

ADF-17 introduces a transformative financial model aimed at leveraging limited concessional resources to unlock larger volumes of capital. Key innovations include:

1. Market Borrowing Option

For the first time, the Fund will operationalise market borrowing, allowing it to expand its lending capacity beyond traditional donor contributions.

2. Deployment of Innovative Instruments

Tools such as hybrid capital will enable the Fund to absorb risk more effectively, particularly for investments in fragile states and high-impact sectors.

3. Catalysing Private Capital

Each dollar contributed to the Fund currently attracts over $2.50 in co-financing and private investment. Under ADF-17’s enhanced model, this ratio is expected to rise significantly.

As Dr. Ould Tah explained:“Concessional finance must do what it does best—absorb risk, unlock private investment, and accelerate development at scale.”

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Breakthrough Co-Financing Partnerships

ADF-17 will anchor major new partnerships designed to scale funding and deepen collaboration across regions:

• Up to $800 million from the Arab Bank for Economic Development in Africa (BADEA)

• Up to $2 billion from the OPEC Fund for International Development

These commitments signal a new era of risk-sharing, multi-partner development, and reinforce Africa’s strengthening ties with Gulf and Middle Eastern institutions.

This collaboration boosts the ADF’s capacity to deliver projects in the most fragile and underserved environments—particularly where market failures persist.

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Strategic Focus: Delivering High-Impact Results Across 37 Countries

ADF-17 resources will support 37 low-income and fragile African countries, focusing on development priorities aligned with the AfDB President’s Four Cardinal Points Agenda:

• Expanding Access to Energy

Accelerating progress toward universal energy access through renewable energy, transmission infrastructure, and mini-grids.

• Strengthening Food Systems

Investing in agricultural value chains, food storage, climate-resilient crops, and regional food security programs.

• Investing in Human Capital

Scaling up education, healthcare, youth employment programs, digital access, and skills development.

• Deepening Regional Integration

Strengthening transportation corridors, trade facilitation, and cross-border economic initiatives.

• Building Resilient Infrastructure

Enhancing climate resilience, disaster preparedness, and sustainable urban development.

Support will continue through the Transition Support Facility, which prioritises states experiencing conflict, instability, or climate vulnerability.

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Strong International and African Confidence in AfDB’s Direction

The London pledging conference—co-hosted by the United Kingdom and Ghana—concluded a year of negotiations amid heightened global geopolitical tensions, inflationary pressures, and competing aid demands.

UK Minister for International Development, Baroness Jenny Chapman, emphasised:“We are proud to co-host this replenishment. The African Development Bank is a critical partner in driving sustainable and inclusive growth—for Africa and for the UK.”

Ghana’s Deputy Finance Minister, Thomas Nyarko Amprem, added:“The ADF is a strategic instrument to reduce vulnerability on the continent. ADF-17’s success confirms strong international confidence.”

Dr. Ould Tah concluded the negotiations with a decisive message:“This replenishment is not just aid—it is a strategic investment. It delivers measurable returns in growth, stability, trade, and global resilience.”