The African Development Bank (ADB) has reached a major milestone in financing development in Africa. On 16 December in London, the institution announced that it had mobilised 11 billion dollars (around 9.3 billion euros) in contributions for the 17 è replenishment of the African Development Fund (ADF-17). One unprecedented amount for this three-year mechanism, intended to finance donations and concessional loans in favor of the most vulnerable African countries

A total of 43 partners participated in this mobilization, which shows an increase of 23% compared to previous reconstruction. This is the highest level ever reached since the creation of the Fund in 1972, in an international context marked by the tightening of official development assistance and by uncertainties associated with the partial withdrawal of some traditional donors, especially the United States.

The ADB states that the envelope includes expected contributions from the OPEC Fund for International Development and the Arab Bank for Economic Development in Africa (BADEA). Fact Notably, 23 African countries also contributed for a total of 182.7 million dollars, including 19 states participating for the first time in this dealership counter.

For Sidi Ould Tah, President of the ADB, this mobilization goes beyond the simple fiscal year. “It is not only a replenishment of resources. It's a turning point,” he declared, stressing that, despite a difficult global environment, the partners have made the choice of investment rather than withdrawal.

The ADF, a pillar of financing Conventional

The African Development Fund is the main concession instrument of the ADB Group. He supports, over three-year cycles, 37 low-income African countries or situation of fragility, in key sectors such as energy, agriculture, infrastructure, water, health or even education. Since its creation, the ADF has mobilized the equivalent of 45 billion dollars in concessional financing and guarantees.

Its role is all the more crucial because many African states face high debt, volatility financial markets and limited access to long-term financing and affordable.

The FAD-17 cycle also marks a strategic evolution. The partners have validated a new financial model authorizing controlled use of capital markets, as well as the deployment innovative tools, in particular hybrid capital. According to the ADB, each Dollar invested through the Fund already makes it possible to mobilize more than 2.5 dollars of co-financing and private capital, a ratio that is expected to increase.