The African Development Bank (AfDB), on Monday, December 15, opened a donor-pledging conference in London for the replenishment of the African Development Fund (ADF), as it works to secure a $25 billion target against the backdrop of reduced United States support.
Earlier this year, the Trump administration withheld a $197 million tranche pledged during the previous replenishment cycle, creating uncertainty around Washington’s future contribution and leaving a potential $560 million grant funding gap if no US commitment materialises. While the AfDB confirmed that a US representative would attend the two-day talks, it remains unclear whether funding will follow.
The ADF, replenished every three years, provides grants and concessional loans to Africa’s lowest-income countries, financing critical infrastructure such as irrigation schemes, roads and electricity projects. Since its establishment in 1972, it has disbursed about $45 billion to 37 countries. Unlike the AfDB’s main lending arm, ADF support carries longer repayment periods exceeding 20 years and softer terms, making it increasingly vital as debt burdens rise, aid shrinks and global capital markets tighten.
US officials have previously said they are seeking to refocus the fund on economic growth and poverty reduction, but the Trump administration has already cut support to other multilateral lenders, including an $800 million reduction to the World Bank’s International Development Association in May. The US contributed nearly 7% of the ADF’s last replenishment of $8.9 billion at the end of 2022.
In response, the AfDB is broadening its funding strategy. African member states are set to contribute seed capital, with Kenya’s President William Ruto committing $20 million last year and potential contributions expected from countries such as Benin, Ghana and Sierra Leone.
The fund is also finalising plans to raise $5 billion per cycle from capital markets and to attract philanthropic finance, signalling a strategic pivot to safeguard its development mandate amid shifting global aid priorities.