The African Development Bank (AfDB) held a high-stakes donor conference in London on Monday, aiming to secure $25 billion for the African Development Fund (ADF), the agency’s concessional window supporting low-income African economies.
The push comes at a critical time, with the United States, long one of the top five contributors to the ADF, withholding nearly $200 million previously pledged, raising concerns about whether the Bank will be able to meet its ambitious replenishment goals.
Valerie Dabadi, AfDB’s head of resource mobilization and partnerships, said the fund faces a $560 million shortfall if Washington does not participate. The World Bank confirmed that a U.S. representative would attend the talks, but it remains unclear whether the U.S. will provide new financing.
The Trump administration reduced contributions to multilateral development agencies through 2025, including an $800 million cut to the World Bank’s IDA window.
Expanding the role of ADF for debt-burdened countries
Founded in 1972, ADF has provided $45 billion to 37 low-income African countries, financing power access, major roads, irrigation systems, and other infrastructure critical to growth.
Unlike the AfDB’s standard lending arm, which has high interest rates and short repayment terms, ADF provides grants and low-interest loans with maturities of over 20 years, providing a lifeline for countries facing challenges such as:
The debt crisis is growing;
reduction in development aid;
Our ability to borrow commercially is limited.
The U.S. accounted for 7% of the ADF’s last resupply round in 2022.
European and African countries step into a vacuum
Amid uncertainty about U.S. support, other partners have also significantly increased their commitments.
Denmark: 40% increase to 1.1 billion Danish crowns ($171 million)
Norway: approximately 6% increase
African Member States: Start contributing for the first time
Kenya has pledged $20 million, with additional support expected from Benin, Ghana and Sierra Leone.
ADF also plans to raise $5 billion from the capital markets each cycle and strengthen its collaboration with philanthropic organizations to diversify its funding.
A pivotal moment for the future of Africa’s development
The ADF replenishment round comes amid tightening global financial conditions, reduced aid flows and heightened international uncertainty.
However, demand for concessional financing continues to soar as African governments face the following challenges:
climate shock,
lack of energy infrastructure;
food system vulnerabilities;
Unsustainable debt servicing.
Whether the AfDB achieves its $25 billion target will shape the continent’s development trajectory over the next three years.
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