The first meeting of the African Development Fund (ADF) 17th replenishment cycle (ADF-17) concluded after three days of substantive discussions on the Fund's strategic direction, financing framework, and efforts to mobilize additional resources for the period 2026-2028. ADF Deputies, representatives from development partner countries and ADF-eligible countries, and senior leadership from the African Development Bank Group had in-depth deliberations on how a well-resourced ADF-17 can sustain and enhance the Fund's effectiveness and long-term impact in supporting Africa's low-income countries.
Speaking at the meeting, African Development Bank Group President Dr. Akinwumi Adesina underscored the Fund's enduring role in driving development outcomes. "Working together over the past 50 years, we have developed an institution that has become the largest Africa-based financing platform for low-income countries. The impact of the Fund clearly shows that it is delivering impressive results, changing lives, transforming communities, and elevating economic growth trends of nations," he said.
That impact is evidenced by ADF operations between 2015 and 2023, which connected 3.2 million people to electricity, supported 71 million with improved agriculture, and rehabilitated more than 11,000 kilometres of roads to strengthen regional integration. The Fund also enabled 83.7 million people to access transport and helped 65.5 million gain access to improved water and sanitation. These results highlight the ADF's central role in advancing inclusive growth and delivering on Africa's most pressing development needs.
Strategic and Operational Priorities for ADF-17
The first day of discussions reaffirmed strong support for the Fund's two-pillar focus on sustainable, climate-resilient infrastructure and governance, capacity building, domestic resources mobilisation and sustainable public finance and debt management. In today's increasingly complex development context, participants emphasized that this selective approach remains critical to delivering tangible impact. There were also calls to further scale support for climate finance, biodiversity conservation, and private sector engagement, all seen as pivotal to accelerating economic transformation and strengthening resilience.
Domestic resource mobilization and financial transparency were also highlighted as essential to strengthening Africa's ability to finance its own development. Participants discussed the need to enhance tax systems, reduce illicit financial flows, and improve public financial management to help countries build fiscal resilience and reduce dependence on external aid.
Discussions also explored enhancing the role of the private sector in accelerating economic growth across ADF countries. Participants considered several approaches to supporting investment opportunities, expanding access to local currency financing, and mobilizing blended finance solutions to attract greater private capital. With interventions at both public sector, to build an appropriate environment with key infrastructure and adequate regulatory frameworks, and the private sector levels, with the preparation of non-sovereign operations and de-risking instruments, the African Development Fund is the right platform to catalyze more investments the private sector in African low-income countries.
Regional integration, a recognized comparative advantage of the ADF, was another key theme, with discussions focusing on how infrastructure and trade-related investments can help countries harness the benefits of the African Continental Free Trade Area.
Strengthening ADF-17's Financing Framework
The final day of the meeting turned to ADF-17's financing structure, with deliberations on innovative financing mechanisms, including the Market Borrowing Option--a proposed approach that would allow the Fund to raise additional resources from capital markets--and the transition from grants to Very Highly Concessional Loans, which would offer eligible countries softer financing terms while preserving grant capacity for those most in need. The approach to grant compensation was also discussed. Participants exchanged views on how best to ensure financial sustainability while maintaining strong concessional support for the most vulnerable countries.
Closing the meeting, Dr. Adesina reaffirmed the Bank's commitment to making ADF-17 a high-impact and sustainable replenishment cycle, emphasizing the need for leverage, effectiveness, efficiency, value for money, and investment. "The ADF-17 replenishment is our recharging station for us to get to our desired destination: better and more resilient environments where hopes will thrive. So, let us be pragmatically ambitious! And let us meet our ambition with multiple innovative instruments, including the ADF Market Borrowing Option," he said.
With Africa projected to account for a quarter of the world's population by 2050, ADF-17 presents a timely opportunity to scale up investments that build resilient economies and create decent jobs for the continent's growing youth population. Dedicated exclusively to Africa's low-income countries, ADF benefits from a decentralized structure, experienced leadership, and a strong local presence. This approach enables the Fund to tailor support to country contexts, particularly in fragile environments.
Looking ahead, the next replenishment meeting, scheduled for 31 May to 1 June 2025, on the sidelines of the African Development Bank Group Annual Meetings in Abidjan, will provide an opportunity to further refine financing options, assess trade-offs, and explore pathways for greater private sector engagement.
With these discussions serving as a foundation, the ADF-17 replenishment process is advancing toward a structured, innovative, and impactful outcome for Africa's most vulnerable countries.
The meeting of the African Development Fund (ADF) 17th replenishment cycle was held from 11 to 13 March 2025.
