African Development Fund (ADF) Achieves Strong Results in 2024 Despite Challenging Context
The African Development Fund (ADF), currently in its 16th replenishment cycle (2023-2025), has continued to deliver strong results in 2024, despite a difficult and complex context. The recent report on the performance and results of ADF-16, prepared by the African Development Bank (AfDB), highlights progress made under its two strategic pillars: sustainable infrastructure, climate resilience, and governance, capacity building, and sustainable development.
Key Achievements
The report outlines the development results achieved by ADF projects completed in 2024, as well as the projects approved under the 16th replenishment cycle (ADF-16), with a focus on expected outcomes. The results are presented in the broader context of development in the 37 ADF countries and on the continent as a whole. The report also highlights the progress made by the African Development Bank in implementing its institutional commitments.
Solid Results
Despite the observed evolution on the continent, economic growth and development remain fragile in the face of multiple shocks facing Africa. The Gross Domestic Product (GDP) of ADF countries grew by an average of 4.7% in 2024, compared to 3.3% in 2023, and growth is expected to reach 5.5% in 2025 and 2026. However, in the face of an uncertain global context marked by geopolitical fragmentation, persistent regional conflicts, a slowdown in international trade, and a rise in protectionism, "low-income countries under the ADF should continue to show resilience."
Operations supported by the ADF and completed in 2024 generated solid development results. The Bank played a crucial role in promoting development in ADF beneficiary countries, facilitating access to electricity for over 500,000 people, supporting 24,403 agro-food enterprises, building and rehabilitating 614 kilometers of roads, enabling over 1.2 million people to access better health services, and expanding access to essential information and communication technology services for over 1.3 million people.
Resilience of Africa
According to Sidi Ould Tah, President of the African Development Bank Group, Africa faced increased macroeconomic and geopolitical instability, escalating conflicts, and climate shocks in 2024. "Despite these challenges, ADF countries recorded growth of 4.7%, compared to 3.3% in 2023, with projections of 5.5% in 2025 and 2026."
The report also notes that "agricultural productivity is lagging behind, with yields below global averages and vulnerable to climate shocks. Food insecurity is also worsening. However, the manufacturing sector has shown remarkable resilience, with an increase in value added."
Looking to the Future
The strategic framework of ADF-17 proposes an action plan to strengthen resilience and accelerate transformation. It presents a comprehensive program to accelerate progress on key deficits, such as access to energy, agricultural productivity, and job creation.
The ambition of the ADF is to increase transformative investments in these areas, helping to bridge Africa's infrastructure and skills gaps, while stimulating innovation in climate adaptation, digital solutions, and financial mobilization.
"It is imperative to ensure a significant replenishment of ADF-17 resources if the Fund is to provide the necessary concessional financing to help countries unlock private capital, strengthen domestic resource mobilization, and achieve the Sustainable Development Goals and the African Union's Agenda 2063."
In the coming year, "financing will be Africa's most pressing challenge. High debt and limited access to international financial markets will exacerbate a potentially painful transition to abandoning international aid, compromising the progress made."
