ADF gets $8.9bn commitment in 16th replenishment

The African Development Fund (ADF) has received a historic commitment package of $8.9 billion for its 2023 to 2025 financing cycle, marking the largest replenishment in the history of the Fund. The commitment, which was announced by Hassattou Diop N’sele, Vice President for Finance and Chief Financial Officer of the African Development Bank, includes $429 million allocated to a newly established Climate Action Window aimed at bolstering Africa's response to climate adaptation. N’sele highlighted the significance of the replenishment cycle, emphasizing the generous support from partners that would benefit the poorest countries on the continent. In an exclusive interview with CNBC Africa, N’sele discussed the pivotal role of the ADF as the soft loan lending arm of the African Development Bank Group, providing highly concessional loans and grants to impoverished countries in Africa. She expressed gratitude for the commitment from both non-African and African countries, citing the crucial moment for the inclusion of the Climate Action Window in the new funding cycle. Addressing the pressing challenges facing Africa, N’sele underscored the importance of climate adaptation, noting that while Africa emits the least greenhouse gases, it bears the brunt of climate impacts. The dedicated Climate Action Window within the ADF aims to prioritize climate adaptation and mitigation efforts through the allocation of $400 million from the replenishment package. N’sele also highlighted the participation of first-time contributors to the Fund, including Morocco, Algeria, Togo, and Angola, signaling a growing support base from African nations. With the ADF celebrating 50 years since its inception and having financed over 2008 projects totaling over $40 billion, N’sele expressed optimism about the impact the new replenishment cycle would have on accelerating Africa's development. Discussing the fund's focus areas, N’sele mentioned allocations for agriculture and infrastructure projects that aim to improve livelihoods and enhance connectivity for communities. She stressed the ADF's commitment to aligning its operations with the African Union Agenda 2063 and the Sustainable Development Goals (SDGs) to drive tangible results for the continent. N’sele also shed light on the ongoing conversations around exploring new business models for the fund, emphasizing the need to tap into capital markets and leverage partnerships to maximize resources effectively. The ADF aims to innovate and adopt a proactive approach to tackle the continent's challenges amid unpredictable global shocks. Looking ahead, N’sele discussed the significance of the $8.9 billion funding in addressing Africa's infrastructure and climate challenges, emphasizing the ADF's role in mobilizing additional investments and unlocking funding opportunities for African countries. The establishment of the Climate Action Window is poised to increase access to climate finance and promote sustainable development across the continent. Regarding gender equality, N’sele reiterated the ADF's commitment to empowering women and girls, recognizing gender equality as vital for inclusive and sustainable development. The Fund has a gender strategy in place to address gender disparities in its projects and prioritize initiatives that support women's empowerment. As the ADF embarks on its 16th replenishment cycle, the substantial commitment from partners signals a renewed focus on advancing Africa's development agenda and tackling pressing challenges to build a more resilient and sustainable future for the continent.