New contributors and market access inch onto ADF’s agenda

The African Development Fund, the concessional lending arm of the African Development Bank, is gearing up for what officials hope will be its largest replenishment yet. Momentum is building on two fronts: tapping capital markets, and fresh discussions about welcoming nonsovereign contributors for the first time.

The fundraising push comes at a difficult moment for development finance, with major donors cutting back on official aid even as demand for concessional finance grows. The previous replenishment round, ADF-16, brought in a record $8.9 billion, and surpassing that in today’s climate will require new approaches.

ADF is funded by contributions from donor countries. Going to capital markets — or issuing bonds to raise money from investors, as the International Development Association, the World Bank’s concessional arm, already does — would allow it to raise up to $5 billion per a three-year replenishment cycle.