Business & Economy - Companies - National - News - December 8, 2022

AfDB, partners mobilize$8.9 bn for Africa’s low-income countries

MEDIATRACNET

The African Development Bank (AfDB) and development partners of its affiliate, the African Development Fund (ADF) have agreed to commit about $8.9 billion to its 2023 to 2025 financing cycle to support Africa’s low-income economies.

The ADF, which is the concessional lending window of the AfDB, would draw from the fund to provide grants and soft loans to help the benefiting countries recover from the impact of the global economic crisis.
The $8.9 billion replenishment package, which is the largest replenishment package in the history of the Fund, includes $8.5 billion in core ADF funding and $429 million for the newly created Climate Action Window.

The AfDB said in a statement on Tuesday that the ADF-16 core funding represents a 14.24 percent increase over $7.4 billion provided under its ADF-15 intervention.
“It is a strong endorsement of the African Development Fund and its impact in tackling the continent’s multiple development needs, including recovery from the COVID-19 pandemic, the effects of climate change, fragility, debt, and economic vulnerabilities,” the AfDB said.

The Bank said Algeria and Morocco, which was contributing to the Fund for the first time, joined Angola, Egypt, and South Africa on the list of contributing African countries, while the Kingdom of Morocco hosted the fourth and final meetings of the new replenishment (ADF16).

The AfDB President, Akinwumi Adesina applauded the funding package, describing it as impressive. “I am impressed by the huge commitment and efforts of the ADF donor countries in stepping up support for Africa’s low-income countries, especially at this time of great economic, climate, and fiscal challenges. This is the power of global partnerships and effective multilateralism in support of Africa,” Adesina said.

The AfDB said the latest replenishment was coming as the African Development Fund was celebrating its 50th year anniversary since its establishment in 1972. Acknowledging the impact of the Fund through its significant achievements, the AfDB said in the past five years alone, it helped to connect 15.5 million people to electricity, gave 74 million people access to improved agriculture, and 42 million people access to water and sanitation.

In addition, the Bank said about 50 million people gained access to improved Transport through the ADF services, adding that its resources were also helping to build and rehabilitate 8,700 kilometers of roads.
“ADF-16 will support two strategic framework and operational priorities in the areas of developing sustainable, climate-resilient, and quality infrastructure; and governance, capacity building, and sustainable debt management in recipient countries,” the statement said.

Besides, it would also focus on empowering women and girls as a condition for achieving inclusive and sustainable development, while delivering more impacts over the next three years by connecting 20 million people to electricity, 24 million beneficiaries from improvements in agriculture, access to water and sanitation for 32 million people, and improved access to transport for 15 million people.

“These are impressive development impacts. These expected impacts of the ADF will advance the Sustainable Development Goals and the Agenda 2063 of the African Union,” AfDB President, Adesina said.
“They will allow the African Development Fund to build on its reputation as being ranked the second-best concessional financing institution in the world. We will deliver more, better, efficiently, and in partnerships with bilateral and multilateral partners. We will foster a climate-smart, resilient, inclusive, and integrated Africa,” he added.

“African low-income countries are the most vulnerable and least prepared to tackle climate change. The Climate Action Window and the commitment to provide 40% of the core financing of the ADF 16 replenishment towards climate finance will help to build climate resilience in Africa,” he said.

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