President Ruto calls for Ksh.3.4 trillion funding to the African Development Fund

According to President Ruto, an increase in the replenishment of the African Development Fund would increase its capacity to continue providing concessional financing to the least developed African countries. 

He urged donors and development partners to increase their investments in the ADF, which he describes as the continent’s leading development financial institution.

"I take this opportunity to reiterate my call at the recently concluded IDA21 Summit held here in Nairobi: That we appeal for a substantial 17th replenishment of the African Development Fund by at least USD 25B to increase its capacity to continue providing concessional financing to the least developed African countries," said President Ruto.

He was speaking on Wednesday when he officially opened the 59th Annual Meetings of the African Development Bank Group at the KICC in Nairobi.

The current 16th replenishment to the African Development Fund, which is set to conclude next year, raised USD 8.9 billion in December 2022. The replenishment typically covers a period of three years. 

The African Development Fund primarily supports low-income African countries by providing grants and concessional loans for development projects aimed at reducing poverty and promoting sustainable economic growth.

The replenishment funds are used to finance projects and programs in areas such as infrastructure, governance, education, health, agriculture, and climate resilience. 

During the replenishment process, donor countries pledge financial contributions to the ADF. 

The replenishment negotiations involve discussions among the AfDB, donor countries, and recipient countries to agree on the amount of funding, the strategic priorities for the use of the funds.

In his address at the summit, President Ruto also made far-reaching proposals for reforming the African Union targeting key areas such as economic diplomacy, trade, peace, security, and infrastructure development. 

Among the proposals, Ruto called for empowering the African Union Commission for Economic Diplomacy to enhance the AU's ability to attract investments by showcasing Africa's assets effectively.

He also proposed using the AU as a vehicle to consolidate the African Continental Free Trade Area (AfCFTA).