Benin becomes seventh country to contribute to African Development Fund

Benin has pledged $2m to the next replenishment of the African Development Fund, the concessional window of the African Development Bank Group.

The country’s Minister of Economy and Finance, Romuald Wadagni, made the announcement in Cotonou, at the opening session of the Mid-Term Review of the 16^th Replenishment of the Fund.

Benin joins six other African countries that contribute to ADF, which is estimated to have benefited 74 million people in Africa through improvements in agriculture alone. Benin joins existing contributors Algeria, Angola, the Democratic Republic of Congo, Egypt, Morocco and South Africa.

The current three-year financing cycle, which received a record $8.9bn from donors, ends in 2025.  Because it provides grants and low-interest loans, the ADF needs to be “replenished” by donors every three years.

Announcing his country’s pledge, Minister Wadagni said the African Development Fund was a trusted partner for low-income countries and recommended that each “recipient country demonstrates rigour and transparency.”

He said one of Benin’s objectives was “to ensure that we can use the ADF instrument in the form of guarantees and raise money in order to benefit from its leverage effect.”

The African Development Fund is providing Benin with $108.2m towards general budget support for economic governance and private sector development program focused on improving the overall business climate, supporting the agro-industrial sector and strengthening the development of special economic zones, like Glo Gjigbe, that ADF delegates visited as part of the Mid Term Review program.

Adesina encourages more donors

Dr Akinwumi Adesina, head of the Bank, says that he hopes that more countries will follow Benin’s example and contribute to the Fund.

“Our ambition is encouraging more African countries to become state participants in the ADF,” said Adesina.

He cited Kenya’s pledge of $20m to ADF, announced last May by President William Ruto during the Annual Meetings of the African Development Bank Group in Nairobi.

Across the continent, Adesina said the ADF is achieving results.

“15 million people have been provided with access to electricity. 74 million people have benefited from improvements in agriculture for food security. 45 million people have benefited from improved transport. And over 8,700 kilometers of roads have been built or rehabilitated,” said Adesina.