The African Development Bank has launched a donor-pledging conference to secure funding for the African Development Fund, which provides concessional loans and grants to low-income African countries, as it seeks to meet a $25 billion replenishment target amid reduced U.S. support. The move comes after the U.S. administration withheld a $197 million tranche pledged in the previous funding round, creating uncertainty over Washington’s future contributions and leaving a potential grant funding gap of $560 million if no U.S. pledge is made.
Although the United States is expected to be represented at the two-day meeting in London, it remains unclear whether it will commit funds. AfDB officials have warned that existing partners are unlikely to fully compensate for the absence of U.S. financing. Earlier statements from U.S. officials indicated a reassessment of the fund’s mission, while broader cuts to multilateral development institutions, including an $800 million reduction to the World Bank’s concessional arm, have intensified concerns.
The African Development Fund, replenished every three years, has been a cornerstone of development finance since 1972, disbursing $45 billion to 37 low-income African countries to support projects such as irrigation, transport and electricity. Unlike the AfDB’s main lending window, the fund offers long-term, low-cost financing with repayment periods exceeding 20 years, making it increasingly vital as African governments face high debt levels, declining aid and constrained access to global capital markets.
In the previous replenishment round, the United States contributed nearly 7% of the $8.9 billion raised, ranking among the top donors alongside Germany, France, Britain and Japan. While Washington’s pullback threatens the current funding target, several partners have stepped up, with Denmark increasing its contribution by 40% and Norway committing a near-6% rise.
African countries are also beginning to contribute directly. Kenya has pledged $20 million, and other potential contributors include Benin, Ghana and Sierra Leone. At the same time, the fund is developing plans to raise $5 billion in seed capital from markets each cycle and to attract support from philanthropic organisations, aiming to diversify its funding base and sustain concessional lending to the continent’s poorest nations.
