Africa's share of global output has fallen below the current 2%, so the AfDB believes that "a more active industrial policy is needed, but it requires a deep and detailed understanding of each country's constraints and opportunities". Abdul Mukhtar, director of AfDB's Business Development Department, recalled that while Africa has made encouraging progress in industrialisation during the 2010-2022 period, the COVID-19 pandemic and the war in Ukraine have hampered efforts and exposed inadequate production systems.
This crucial meeting results in a funding package for the next cycle of the Fund for the period 2023-2025. Representatives of the Fund's contributor countries and the senior management of the African Development Bank (AfDB), led by its President Akinwumi Adesina, participated in this meeting, which took place in Tangier in a difficult global context marked by slowing economic growth prospects. During these talks, the parties discussed policy and financial orientations and approaches to address them. They also supported the adoption of the ADF-16 report.
The two-day meeting took place in Morocco, in the northern city of Tangier. "This decision reiterates the Kingdom's willingness and commitment to African countries in accordance with His Majesty the King's enlightened vision for a united and prosperous Africa," said Nadia Fettah, in a speech read on her behalf by the Minister of Industry and Trade, Ryad Mezzour.
At its third meeting, the Fund was concerned to respond to admission issues. Discussions focused on climate finance and adaptation, sustainable debt management, post-pandemic recovery, as well as the political and financial support that the African Development Fund should provide to its beneficiary countries.
Given that the Fund includes 8 of the 10 poorest countries in the world, more than 37 African countries have helped them cope with the impact of the pandemic, among other problems.
The Fund has released $1.2 billion to support 25 countries. This funding has helped them support health services, expand social protection, safeguard livelihoods and provide training for health professionals. These countries also benefit from the African Emergency Food Production Facility, approved by the Board of Directors of the African Development Bank Group last May. Resources from the Facility help countries to procure fertiliser and seeds, increase food production by 30% and support policy reforms aimed at addressing structural problems in the agricultural sector.
The African Development Fund celebrates its golden jubilee this year. Over the past 50 years, it has invested more than $40 billion in over 2,700 projects on the continent, earning it global recognition. The African Development Fund was ranked second in the world for the quality of its official development assistance in 2021 by the Center for Global Development and the Brookings Institution. The African Development Fund is the concessional window of the African Development Bank Group which was established in 1972 and became operational in 1974.