AfDB Grant to Boost Industrial Growth and AfCFTA Implementation

The initiative is expected to benefit a broad network of stakeholders, including government ministries, development agencies, regional economic communities, universities and research institutions.

The African Development Fund, the concessional financing arm of the African Development Bank Group (AfDB), has approved a $3.48 million grant to help five African countries strengthen industrial development and improve the implementation of the African Continental Free Trade Area (AfCFTA) through better data, stronger institutions and evidence-based policymaking.

The funding will support Cameroon, Chad, Comoros, Madagascar and Togo, helping governments develop more inclusive and climate-sensitive industrial and trade policies while addressing long-standing challenges that have slowed economic transformation.

Grant targets stronger policy and trade reforms

Approved by the Fund's Board of Directors on 13 July, the project will finance impact assessments linked to the African Union's Accelerated Industrial Development for Africa (AIDA) framework and support wider implementation of the AfCFTA in the five transition economies.

Many countries continue to face difficulties because of limited institutional capacity, unreliable data and weak coordination between agencies responsible for trade and industrial development. These gaps often make it harder to design policies that respond to national priorities and changing economic conditions.

Memory Dube, the project team leader at the African Development Bank Group, said the initiative will provide governments with a standardised and practical methodology that reflects national realities while strengthening their ability to collect, analyse and use reliable data for policymaking.

Building local expertise and better data systems

A major part of the project will focus on strengthening technical skills within national institutions.

Government officials, trade analysts and other specialists will receive country-specific training supported by multilingual learning materials, practical exercises in data collection and validation, and direct technical assistance. The programme will also introduce shared approaches for developing, monitoring and evaluating industrial and trade policies across participating countries.

Special attention will be given to integrating indicators on gender equality, climate change and small and medium-sized enterprises (SMEs) into national monitoring and evaluation systems, helping governments measure the broader impact of their policies.

Wide range of beneficiaries

The initiative is expected to benefit a broad network of stakeholders, including government ministries, development agencies, regional economic communities, universities and research institutions.

Businesses led by women and young entrepreneurs are also expected to benefit as stronger industrial and trade policies create more opportunities for inclusive economic participation and regional market access.

By improving coordination between institutions and strengthening the use of reliable evidence, the project seeks to support more effective decision-making across the participating countries.

Supporting Africa's industrial transformation

The project will be implemented by the African Union Development Agency–New Partnership for Africa's Development (AUDA-NEPAD) in collaboration with national governments and regional partners.

It builds on previous work that developed and tested the AfCFTA/AIDA Impact Assessment Guide, expanding its application to more countries in transition. The initiative is expected to help governments better understand the economic effects of industrial and trade reforms while supporting the broader goals of the African Continental Free Trade Area and advancing sustainable industrial development across the continent.