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Business Writer

FIVE African countries – Gambia, Ghana, Liberia, Sierra Leone, and Sudan have committed to contribute US$1 million each to the African Development Fund (ADF)’s next replenishment cycle.

The five African Development Bank governors signed an agreement in Egypt, committing to contribute at least $1 million to the replenishment of the ADF, the concessional window of the bank group.

Under the self-initiated agreement, the five-member constituency will contribute to the ADF from its next replenishment cycle in 2025.

With nearly half its client countries as fragile states, the ADF contributes to poverty reduction and economic and social development in least-developed African countries by providing concessional funding for projects and programs.

The signing took place on the sidelines of the African Development Bank Group’s 2023 Annual Meetings in the Egyptian resort city of Sharm El-Sheikh.

The agreement was signed by the African Development Bank governors or temporary governors for the five countries, namely: Seedy Keita, Finance Minister of The Gambia, Dr Mohammed Amin Adam, Minister of State at the Finance Ministry (signing on behalf of Finance Minister Ken Ofori-Atta); Augustus Flomo, Deputy Minister for Economic Management of Liberia (signing on behalf of Finance Minister Samuel Tweah); Bockarie Kalokoh, Deputy Finance Minister of Sierra Leone (signing on behalf of Finance Minister Sheku Bangura); and Muhammad Bashar Muhammad, Sudan’s Undersecretary of Economic Planning (signing on behalf of Finance Minister Gibril Ibrahim).

The agreement highlights domestic revenue mobilization as a priority, and requires member countries to allocate at least $3 million yearly to prop up internal revenue flows, which in turn, will unlock more funds for accelerated development.

Another priority area is expanding local private sector-led economic growth through support for small businesses.

The member countries have also committed to investing $1 million to improve their shareholdings at the bank group. Altogether, each constituency member will invest at least US$8 million annually from their national budget to implement the agreement, which also covers climate mitigation.

The AfDB is Africa’s premier development finance institution that comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.