African Development Fund (ADF) - AfDB

Donor: 
Any donor
International Finance Institutions
Geographical focus: 
Global
Africa
Thematic focus: 
Tourism in general
Energy in Tourism
Infrastructure in Tourism
Social inclusion and Poverty reduction in Tourism
Intro text: 
The African Development Fund (ADF) is the concessional window of the African Development Bank (AfDB) Group. The ADF has the challenge of having nearly half its client countries as fragile states, and facing a situation where even stable economies can become fragile due to a single internal or external shock.

Official website

http://www.afdb.org/en/about-us/african-development-fund-adf/about-the-adf/

Geographic focus

The 40 ADF-eligible countries include those that are increasing their economic capacities and heading toward becoming the new emerging markets—as well as those that remain fragile and need special assistance for basic levels of service delivery.

Who can apply?

  • Any member, any geographical or administrative subdivision or agency thereof;
  • Any institution or undertaking in the territory of any member; and
  • Any regional or sub-regional agency or institution concerned with development in the territories of members.

Objectives and activities

Objective: the ADF is the concessional window of the African Development Bank (AfDB) Group, which contributes to poverty reduction and economic and social development in low-income African countries. Millions of Africans stand to benefit from improved energy supply, transport networks, water and sanitation, education and agricultural productivity. The ADF has the challenge of having nearly half its client countries as fragile states, and facing a situation where even stable economies can become fragile due to a single internal or external shock.

Activities: The African Development Fund emerged as the solution to two major constraints which became apparent after the African Development Bank had commenced operations in 1974:

  • the limited amount of resources which the Bank could provide and;
  • the nature as well as the terms of the loans, which were not fully appropriate for the poorest of its member countries, especially for projects with long-term durations or non-financial returns.

Examples of types of tourism-related activities eligible for funding:

  • Zimbabwe: Youth and Tourism Enhancement Project;
  • Nairobi: Thika Road Improvement Project; and
  • Zambia: Trans-Africa Highway/North-South Corridor.

Type and level of funding

The Fund has cumulatively invested UA 29.4 billion (USD 45 billion) over its 40 years of operationalization on the African continent. The Fund’s resources consist of contributions from internal Bank resources and periodic replenishments by donor countries, usually on a three-year basis.

ADF lending targets during the 2015–2017 periods will be set at UA 1.6 billion each year1. Financial assistance is provided in the form of loans and grants.

1The Bank uses a unit of account (the “Unit of Account” or “UA”) equivalent to the IMF’s Special Drawing Right (SDR) as its reporting currency.