African Development Fund

Description

The African Development Fund (AfDF), part of the African Development Bank Group (AfDB), contributes to poverty reduction in its member countries by spurring sustainable economic development and social progress. The AfDF comprises 32 contributing countries, including the United States, and benefits 38 developing countries, nearly half of which are fragile states.

Use of Funds

The AfDF provides concessional funding for projects and programs. AfDF-eligible countries include those on their way to becoming new emerging markets and those that remain fragile and need assistance for basic service delivery. Funds go toward the third installment to the AfDF’s 15th Replenishment (AfDF-15), totaling $7.5 billion from all sources, and runs from F.Y. 2020 through F.Y. 2023.

Justification

• In 2020, AfDF regional member countries saw the following results:
  • 260,000 people (131,000 women) obtained new electricity connections, including 101 M.W. of renewable power capacity with 1.6 million tons of carbon dioxide emissions reduced.
  • 16.4 million people (8 million women) benefited from improvements in agricultural productivity.
  • 9.2 million people gained access to better transport services.
  • 8.3 million people have new or improved access to water and sanitation, of whom 4.2 million are women.
  • 170,000 have better access to education, half of them women.
• • In 2020, the share of climate finance was 34% of all approvals, including 63% for adaptation and 37% for mitigation.
• Every $1 in U.S. contributions to the last replenishment—AfDF-14—leveraged more than $11 in contributions from other donors and internally generated resources. In the last three years, the Fund has increased financial support to the continent’s least developed countries 17-fold.