African Development Fund to Gain $7.3 Billion Boost

African Development Fund to Gain $7.3 Billion Boost

Between 2014 and 2016, 27 countries have agreed and announced that they will continue to support Africa’s economic development through a collective $7.3 billion contribution to the African Development Fund (ADF).

Business Ghana reported that four of the 27 countries (Angola, South Africa, Libya and Egypt) are African nations — all contributors would like to see funds appropriated to areas within the continent that desperately need infrastructural, energy, agricultural and education boosts, among others.

“We are hopeful that even more African countries will be able to contribute to the Fund, particularly as ADF beneficiary countries transition to become middle-income economies. The continent is taking ownership of its own development,” Benoit Chervalier, African Development Bank head of resource mobilization and allocation stated.

The African Development Fund — an integral financial pool that supports the work of the African Development Bank — is in it’s thirteenth replenishment phase, according to Business Ghana. The fund is regenerated in two-year cycles, a span of time in which often projects such as the Djibouti-Ethiopia power interconnection project, the Lake Turkana Wind Farm and the East African geothermic Menengai project in Kenya are planned and funded.

“I warmly welcome these pledges, which have been made at a time of tough budget choices. They represent a powerful signal of support for Africa, and for the Bank’s vision for inclusive and sustainable growth,” Donald Kaberuka, African Development Bank president said in the report.

“They further strengthen our capacity to deliver on our ambitious agenda around infrastructure, economic integration, private-sector development, with greater emphasis on accelerating gender equality and addressing the challenges of fragility in Africa,” Kaberuka continued noting that the continuation of such programs define the continent’s competitive mobility.

In an attempt to further attract private investors who will support private sector development, fund contributors have approved the implementation of the Partial Credit Guarantee and the Private Sector Credit Enhancement Facility, Business Ghana reported.

These funds will target low-income areas in Africa as well as “transformational development projects,” according to the report. Reducing poverty and improving the quality of life for African citizens is the overall goal of the African Development Fund.