The Future
HOW A REFRESHED AFRICAN DEVELOPMENT FUND WILL DELIVER MORE AND BETTER
Leveraging African Development Fund equity will create a unique opportunity for the African Development Fund to increase resources and complements the existing framework of sustained contributions by development partners .
A bigger African Development Fund will contribute to its longterm financing sustainability . It will offer a sustainable response to the increasing needs of eligible countries by providing significantly more resources at low interest rates .
The African Development Fund is seeking to leverage its builtup equity of $ 25.2 billion to raise at least $ 33.6 billion in the medium and long-term . Doing so will be consistent with the practice of other multilateral development banks . Until now , the African Development Fund has mainly relied on subscriptions from international development partners and internally generated resources . But accessing capital markets will greatly increase its contribution towards achieving the African Union Agenda 2063 , the UN Sustainable Development Goals , and the African Development Bank ’ s High 5 Priorities .
To achieve this , the African Development Fund charter will need to be amended to allow the Fund to lend on nonconcessional terms .
Following the necessary statutory and legal processes and an anticipated Triple A rating , a transformed African Development Fund will see a new borrowing program on an annual basis . The Fund , working through its Project Preparation Facility , is already generating a solid pipeline of ready-to-go investment projects that will absorb the funds raised on the capital markets and put these resources to productive use . A refreshed African Development Fund will offer Africa ’ s most vulnerable countries the additional resources they need to tackle several challenges , including the Covid-19 pandemic .
8 50 Years I African Development Fund