African Development Fund (ADF)

The African Development Fund (ADF) is the concessional window of the African Development Bank (AfDB) Group. Established in 1972, the ADF became operational in 1974. It is administrated by the African Development Bank and comprises State Participants (donor countries) and recipient countries. Its main objective is to reduce poverty in Regional Member Countries (RMCs) by providing loans and grants.

The ADF contributes to the promotion of economic and social development in 40 least developed African countries by providing concessional funding for projects and programs, as well as technical assistance for studies and capacity-building activities.

The Agreement establishing the African Development Fund designates the Board of Governors as the Fund’s highest policy-making organ. The Board of Governors meets at least once a year. The ADF Board of Directors includes seven Executive Directors from non-RMCs - the Executive Directors are nominated by their constituencies - and seven Executive Directors representing the AfDB. The Board oversees the Fund’s general operations. The Fund’s resources are replenished every three years by 27 donor countries. In the replenishment discussions, the donor countries are represented by their ADF Deputies.

No interest is charged on ADF loans; however, the loans carry a service charge of 0.75 percent per annum on outstanding balances, and a commitment fee of 0.50 percent per annum on undisbursed commitments. Project loans have a 50-year repayment period, including a 10-year grace period. Lines of credit have a 20-year repayment period with a five-year grace period.

The ADF successfully concluded in October 2010 its 12th Resource Replenishment (ADF-12) for the Fund’s activities in 2011-2013. For this period, ADF Deputies agreed on a record level of UA 6.1 billion. The Fund’s core strategic priorities for ADF-12 remain infrastructure, governance, fragile states and regional integration. Cross-cutting issues are private sector development, climate change adaptation and mitigation, gender equality, and food security and agricultural productivity.

*1 UA=1 US$1.535