African Development Fund Spotlighted for Transformative Role in Low-Income African Countries

The African Development Fund (ADF), the concessional financing arm of the African Development Bank Group, was in the spotlight during a special African Transformation Briefing co-hosted by the African Center for Economic Transformation (ACET) and the Global Strategic Communications Council on July 29, 2025. The virtual session gathered development partners, journalists, and policymakers to explore the Fund’s critical role in advancing economic transformation in 37 low-income African countries, nearly half of which are classified as fragile states.

Catalyzing transformation through concessional finance

Valerie Dabady, Manager of Resource Mobilization and Partnerships at the African Development Bank, outlined the ADF’s impact since its inception, channeling over $45 billion into infrastructure, climate resilience, and regional integration. She emphasized innovations such as market borrowing and expanded donor engagement as key to scaling the Fund’s reach.

“With 37 member countries and over $45 billion in investments since inception, the African Development Fund is a cornerstone of Africa’s development financing architecture,” Dabady said.

Zambia’s experience: Leveraging ADF resources for regional growth

Joseph Chanda, Assistant Director for Economic Management and Planning at Zambia’s Ministry of Finance, shared how ADF financing has accelerated the country’s infrastructure and trade initiatives.

One example is Zambia’s investment in the Lobito Corridor, a strategic rail and road project linking Angola, the Democratic Republic of Congo, and Zambia. By dedicating just 10% of national resources to the corridor, Zambia leveraged over $330 million in co-financing, with the ADF committing $500 million to de-risk and drive the project forward.

Another success story is the Kazungula Bridge Project, co-financed by the ADF with $68 million. Completed in 2021, the bridge and its One-Stop Border Posts have streamlined customs, reduced transit times, and strengthened intra-African trade routes between Southern and Central Africa.

A pivotal moment for the Fund

Participants discussed donor engagement, access to capital markets, and future financing structures. Dabady confirmed efforts to attract non-traditional partners and secure market access approvals.

Kerezhi Sebany, Africa Director for Economic Opportunities at the ONE Campaign, urged broader awareness: “We must shine a light on the African Development Fund. When people know what the Fund delivers, it fosters transparency, trust, and partnership.”

The ADF is in its 17th replenishment cycle (ADF-17), with key meetings scheduled for September and October 2025, and the final pledging session set for December 2025.

Watch the full briefing here: https://apo-opa.co/4mxztaR