LAGOS, Dec 17 – The African Development Bank said on Tuesday it had raised $11 billion for the African Development Fund, its low cost lending window for poor and fragile states, following a two day donor pledging conference in London.
The amount exceeds the $8.9 billion raised in the previous replenishment round in 2022 but remains significantly below the bank’s initial $25 billion target for the fund, which is replenished every three years.
The announcement came against the backdrop of weakening engagement from the United States, traditionally one of the fund’s largest donors. The AfDB did not disclose whether Washington made a pledge, and the US government has not commented.
In May, the Trump administration withdrew a $197 million funding tranche for the African Development Fund, raising concerns over the future of US participation.
“In one of the most difficult global environments for development finance, our partners chose ambition over retrenchment and investment over inertia,” AfDB President Sidi Ould Tah said in a statement.
The AfDB said 43 partners contributed to the replenishment, including 19 African countries such as Kenya, Zambia and Ivory Coast, which made first time contributions. African member states pledged a combined $182.7 million.
Among non African partners, the Arab Bank for Economic Development in Africa pledged $800 million, while the OPEC Fund for International Development committed $2 billion, the lender said.
Since its creation in 1972, the African Development Fund has disbursed about $45 billion to 37 low income African countries, financing projects in areas such as irrigation, transport infrastructure and electricity.
Unlike the AfDB’s main lending window, which provides loans at higher interest rates and stricter terms, the fund offers grants and concessional loans with repayment periods exceeding 20 years.
Its importance has grown as many African governments grapple with high debt burdens, shrinking foreign aid flows and tighter global capital markets that restrict access to affordable financing.
The donor conference was co hosted by Britain and Ghana, the AfDB said.
In response to the US pullback, the bank has been seeking new contributors, reviewing its charter to allow it to raise up to $5 billion in seed funding from capital markets each replenishment cycle, and expanding engagement with philanthropic organisations.
