Business
ADF Invests $45bn Across 40 Countries
The African Development Bank (AfDB), says the African Development Fund (ADF) has invested 45 billion dollars in 2,750 operations across 40 African countries.
The Bank in a brochure titled ‘50 Voices, 50 Stories: Celebrating the impact of the African Development Fund over five decades, said this on its website on Tuesday.
AfDB said that since the creation of the fund in 1972, it had been an important source of concessionary resources and technical support to low-income African countries.
The Bank said the fund had in the pastIfive years, helped to connect 15.5 million people to electricity, supported 74 million Africans with improved agriculture and food security.
AfDB said the fund had also built or rehabilitated 8,700 kilometres of roads, enabled 50 million people to gain access to transport and 42 million people to access better water and sanitation.
“Fifty years ago, the ADF was founded on one fundamental principle.
“It is to promote economic and social development in the lives of people in low-income and fragile African countries.
“Today, the fund remains a staunch partner of these countries, touching the lives of millions of people across the continent.
“A people-first approach remains at the core of the fund’s priorities.
“As it celebrates its 50th anniversary this year, the AfDB Group is launching 50 Voices, 50 Stories: a series which highlights the fund’s life-changing impact in 37 beneficiary countries,’’ the Bank said.
AfDB said that the fund supported its benefitting countries through the 2008 and 2009 global financial crisis and the 2014 Ebola outbreak in West Africa.
It said the fund’s support came to the countries during frequent and intense droughts, floods and other natural disasters.
It noted that during the COVID-19 pandemic, the fund demonstrated its ability to respond rapidly, reprioritising its operations and targeted programmes to mitigate impacts of the pandemic through the COVID-19 Response Facility.
The Bank said the fund was investing in building up a deep understanding of the drivers of conflict and fragility across Africa to address the root causes of poverty and conflicts.
AfDB in the brochure assured benefitting countries that the fund would continue to play a fundamental role in their lives.
“As the beneficiary countries continue to bear the brunt of the most devastating impacts of COVID-19, rising debt, climate change, and more recently the prospect of a food crisis triggered by the conflict in Ukraine, the fund will continue to play a fundamental role in the lives of people in these countries”.
The ADF is the concessional window of the AfDB Group, established in 1972 but became operational in 1974.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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