The African Development Bank (AfDB) launched a donor-pledging conference on Monday to raise $25 billion for its African Development Fund (ADF), which provides low-income countries with concessional loans and grants.
Acording to Reuters, the effort comes amid uncertainty over U.S. support, following the Trump administration’s withholding of a $197 million tranche pledged in the previous replenishment round, raising doubts about Washington’s commitment.
“Existing partner countries are unlikely to fully close the $560 million grant funding gap that would remain without a United States pledge,” said Valerie Dabady, AfDB’s head of resource mobilisation and partnerships.
The White House did not respond to requests for comment. A U.S. Treasury spokesperson previously said in September it was “seeking to return the ADF to its core mission of promoting economic growth and poverty reduction in the poorest African countries,” without further details.
The administration has also cut funding to other multilateral institutions, including an $800 million reduction to the World Bank’s International Development Association in May.
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Replenished every three years, the ADF has provided $45 billion to 37 low-income African nations since 1972, financing projects such as roads, electricity, and irrigation.
Unlike the AfDB’s main lending arm, which charges higher interest and stricter conditions, the ADF offers concessional loans with repayment periods exceeding 20 years. Its importance has grown as heavy debt, shrinking aid, and tight global capital markets limit governments’ access to financing.
In the previous round, the U.S. contributed nearly 7% of the $8.9 billion replenishment, ranking among the top five donors alongside Germany, France, Britain, and Japan.
To offset potential shortfalls, other nations are stepping up: Denmark will raise its contribution by 40% to $171 million, Norway pledged a near-6% increase, and African member states, including Kenya, Benin, Ghana, and Sierra Leone, will begin contributing, with Kenya committing $20 million last year.
AfDB is also finalising plans to raise $5 billion in seed funding from capital markets and to tap philanthropic organisations.
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Image Credit: TRT Afrika
