By Business Insider Reporter
The African Development Bank (AfDB) has raised a record US$11 billion for the African Development Fund (ADF), the largest replenishment in the Fund’s 53-year history.
The achievement is strategically significant for Africa’s low-income economies, including Tanzania, one of the Fund’s largest and longest-standing beneficiaries.
The ADF, AfDB’s concessional financing window, provides low-interest loans and grants to 37 low-income African countries, focusing on energy access, food security, climate-resilient infrastructure, and regional trade integration.
This new funding marks a 23 percent increase over the previous replenishment, signaling strong confidence in Africa’s development prospects, the AfDB’s leadership, and a development model centred on investment, risk-sharing, and scale.
“This is a turning point,” AfDB President Sidi Ould Tah said following the replenishment. “In one of the most difficult global environments for development finance, our partners chose ambition over retrenchment, and investment over inertia.”
Africa steps forward as a co-investor
The latest funding round stands out not only for its size, but also for the depth of African participation. For the first time in the Fund’s history, 23 African countries have made unprecedented contributions to their own concessional financing window.
A total of US$182.7 million was pledged by African countries, with 19 countries contributing for the first time, alongside long-standing regional contributors. This represents a five-fold increase compared to the previous replenishment.
“This is not symbolic,” Dr Tah said. “This is transformational. Africa is no longer only a beneficiary of concessional finance. Africa is a co-investor in its own future.”
The achievement is particularly notable given recent headwinds in global aid flows. Earlier this year, the United States – previously among the top five contributors to the ADF – withheld nearly US$200 million it had pledged in a previous replenishment cycle.
Beneficiaries of ADF financing
Tanzania stands to benefit significantly from the AfDB’s record replenishment, having been a major recipient of the Bank’s concessional financing for decades.
As of mid-2024, AfDB approvals for the country totaled around US$3.48 billion, supporting key sectors such as transport, power, water, agriculture, and social-economic development.
Recently, the Bank committed an additional US$2.5 billion for priority infrastructure, with over 70 percent earmarked for transport projects including roads, railways, and airports, reinforcing Tanzania’s long-term growth agenda.
Powering growth: Energy and agriculture at the core
Energy has been a cornerstone of AfDB support to Tanzania. Through concessional loans and blended finance, the Bank has backed renewable energy projects, including hydropower investments that expand generation capacity and improve grid stability – critical for industrialisation, SME growth, and household electricity access.
In agriculture, ADF financing has supported rural roads, irrigation, fertilizer access, and value-chain development, boosting productivity, food security, and smallholder incomes. These interventions align with Tanzania’s priorities on agricultural transformation and climate resilience.
AfDB Resident Representative in Tanzania, Dr. Patricia Laverley, emphasizes the Bank’s role as a development partner, not just a financier:
“The African Development Bank’s financing in Tanzania is designed to unlock economic transformation – investing in infrastructure, energy, agriculture, and private-sector development that directly supports jobs, productivity, and inclusive growth.”
Why the US$11 billion matters now
The record US$11 billion ADF replenishment significantly strengthens the AfDB’s capacity to support countries like Tanzania at a time when access to international capital markets has become more expensive and volatile. Concessional financing remains vital for maintaining investment momentum while safeguarding debt sustainability.
For Tanzania, the replenishment enhances prospects for continued funding of priority infrastructure, energy, and agricultural programmes, as well as regional integration projects aligned with the African Continental Free Trade Area (AfCFTA).
As global development finance becomes increasingly constrained, the AfDB’s achievement sends a clear signal: Africa’s development agenda remains investable, credible, and backed by collective commitment. For Tanzania, it reinforces a trusted partnership that continues to shape the country’s growth trajectory and long-term economic transformation.
