The African Development Fund (ADF) is preparing for its 17th Replenishment meeting, which will take place in London on 15th and 16th December 2025. This meeting will conclude a year of consultations and determine the funding for the 2026-28 replenishment cycle. Officials from the African Development Bank (AfDB), the ADF, and key donors will gather to discuss the fund’s future.
The event is co-hosted by the African Development Bank, the United Kingdom, and Ghana. African negotiators hope donors will take a long-term, global perspective and match the commitments made during the 16th Replenishment. The ADF continues to be vital for supporting Africa’s 37 poorest countries with affordable financing for development projects.
A Growing Need for Funding in a Challenging Environment
Since 1972, the ADF has disbursed over $45 billion in concessional financing. This has funded grants, loans, and technical assistance, improving infrastructure and services. However, ADF countries now face growing debt and limited fiscal space. According to the Center for Global Development, the situation has worsened due to tariff issues and the impact of the Ukraine-Russia conflict on global supply chains.
Climate change has severely affected sub-Saharan Africa, damaging crops and causing food shortages. As a result, the need for funding has become more urgent as the global economic landscape continues to shift.
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The 16th Replenishment and Its Impact
The ADF 16 Replenishment was the largest yet, raising $8.9 billion, including $429 million for a new climate window. However, the global economic situation has changed significantly since then. Major donors like Germany, France, the UK, and the US provided nearly half of the pledges in the 16th cycle. But now, their contributions to the 17th Replenishment may decrease due to shifting domestic priorities.
Despite these challenges, the ADF 16 investments made a significant impact. These included providing clean water to 2.9 million people, electricity to over 500,000, and improving health services for 1.2 million. The ADF also helped 500,000 farmers with climate-resilient technologies and improved transport for 3.5 million people by constructing or rehabilitating roads.
Challenges in Securing Funding for ADF 17
During the previous replenishment cycle, AfDB President Akinwumi Adesina set an ambitious target of $25 billion for ADF 17. However, due to economic constraints and changing political priorities, many experts believe this target is now out of reach. If the fund can match ADF 16 pledges, it will still be seen as a success, especially with the ADF 17 project pipeline needing about $11 billion.
Donor commitments are expected to decrease. Additionally, US-Africa relations have worsened, particularly under the Trump administration, which raises concerns about US support for the ADF.
Innovative Approaches to Funding and Global Support
Despite these challenges, Dr. Sidi Ould Tah, AfDB’s President, has called for innovative funding approaches. He stressed that the ADF replenishment should be seen as an investment in Africa’s development rather than just aid. Dr. Tah has also proposed changes to the fund’s charter to allow for market-based borrowing, which would enable the ADF to access capital markets directly. The Market Borrowing Option requires approval from 75% of shareholders and could raise up to $5 billion every three years.
Dr. Tah has also presented a framework where each donor dollar could unlock $2.50 in additional capital, mobilizing private funding and co-financing. This approach reflects a shift in development financing and aims to reduce reliance on traditional donor sources.
Adapting to the New Realities
The global environment has changed dramatically since the last replenishment cycle. The AfDB’s proposals offer an opportunity to raise funds for Africa’s development while reducing the burden on traditional donors. As the world faces increasing challenges, including illegal migration, the need for growth-driven solutions is more urgent than ever.
The ADF’s work in improving infrastructure and services helps address the root causes of migration, such as lack of economic opportunity. By investing in Africa’s future, the ADF contributes to shared global prosperity.
