AfDB allocated over $5B in 2021. Here’s where it's going

In 2021, the African Development Bank added 91 new projects into its quarterly operational summaries — a series of reports that contain all the programs that enter the bank’s pipeline. Data in the QOS is not final. New projects are expected to be submitted for board approval six months after publication in the QOS, so information such as description and loan amount are still subject to change until a project agreement is signed. Devex dug into the QOS reports published throughout 2021 to see where the bank is putting its money and what its priority regions and sectors are. We also identified top projects. Overall, AfDB allocated $5.04 billion to new projects in 2021. This is up $872.7 million, or 21%, from the previous year. The increase corresponds with a rise in countries borrowing for new projects. The bank listed programs in 23 countries in 2020, but this rose to 33 countries in 2021. Of the 33 countries the bank has on its books, Cameroon received the largest funding allocation. It also recorded the highest jump, from $178.8 million in 2020 to $912.2 million in 2021 — a 410.3% increase. Geographical focus Almost two-thirds of the total funding for new projects, worth $3.2 billion, went to West Africa. This is up 67.3% from the previous year. On the other hand, North Africa and the Middle East saw the biggest increase in funding among regions, from $126.2 million in 2020 to $676.6 million in 2021 — a 436.1% increase. The third region with the biggest funding is southern Africa, with $640.3 million; then eastern Africa, with $260.6 million; and Central Africa, with $143 million. A further $119.8 million was allocated for 10 multicountry projects. As mentioned above, Cameroon received the biggest allocation, worth $912.2 million, or 18.1% of the total funding. Nigeria, which ranked first in 2020, is next with $746.4 million. Other priority countries include Côte d'Ivoire, with $447.8 million; South Africa, with $309.2 million; and Gabon, with $288.6 million. Together, these five countries accounted for 53.7% of the total funding in 2021. Sectoral priorities Agriculture and rural development was the sector that received the most funding, with $940.8 million, or 18.7% of the total funding. Activities in this sector include strengthening food systems, improving agricultural technologies, and increasing agricultural production. Social development received $777.9 million, or 15.4% of the total funding. Projects include a wide range of activities related to economy, governance, human development, resilience, and disaster risk reduction. Multisector projects rose from $449.4 million in 2020 to $1.3 billion in 2021. They accounted for 24.9% of the total allocation in 2021. This sector includes any project with cross-cutting goals, including COVID-19 response and recovery and improvement of industries and businesses. The remaining $2.1 billion, or 41%, went to all the other sectors including finance, transport, health, urban development, communication, water and sanitation, energy, inclusive development, industry, and institutional support. Top projects Here are the biggest new projects that entered AfDB’s pipeline in 2021: • $728.7 million to improve skills and competitiveness and promote entrepreneurship in the construction, energy, and transport sectors in Cameroon. • $447.8 million to strengthen the sewage network in six districts in Côte d'Ivoire. • $299.9 million to support COVID-19 response in South Africa. • $245.1 million for digital technologies to improve food system outcomes in Libya. • $204.6 million to boost agro-processing capacity in Nigeria. • $183.4 million for the development of access roads to industrial zones in Cameroon. • $144.4 million to improve and lower the cost of internet connection in Gabon. • $136.1 million to support economic recovery in Botswana. • $132.6 million to reduce trade finance gap in Nigeria. • $127.4 million to increase subregional trade and develop rural areas in Niger. Try out Devex Pro Funding today with a free five-day trial, and explore funding opportunities from over 850 sources in addition to our analysis and news content.