AfDB Group Approves Record US$11.05B in Financing ...

AfDB Group Approves Record US$11.05B in Financing for 290 Projects Across 45 Countries

Oscar J Jeke- Zim Now Reporter

The African Development Bank (AfDB) Group achieved a historic milestone in 2024, approving a record US$11.05 billion (UA 8.47 billion) in financing for 290 projects across 45 countries.

The investments reflect the Bank’s commitment to fostering economic growth and resilience across the African continent, even amid global headwinds.

The record approvals—which surpassed the UA 8.03 billion achieved in 2023—demonstrate the AfDB’s robust support for both sovereign and non-sovereign operations. Sovereign operations received UA 3.92 billion, while private sector operations secured UA 1.65 billion.

An additional UA 1.08 billion was allocated through the Transition Support Facility and other special funds. The African Development Fund contributed UA 1.82 billion to support low-income and transition countries.

This significant financial injection comes as African economies demonstrated remarkable resilience in 2024, growing at an average rate of 3.2%. Notably, 18 countries achieved growth rates exceeding 5%, with Africa boasting three of the world’s top 10 fastest-growing economies.

This growth occurred despite challenges such as currency depreciation, high interest rates, rising debt service costs, climate change impacts, and geopolitical risks.

By the end of 2024, the AfDB’s active portfolio had expanded to 1,369 projects valued at UA 49.14 billion, up from UA 44.71 billion in 2023. The Bank also mobilized UA 2.29 billion in co-financing—exceeding its target of UA 1.9 billion—with UA 1.69 billion from partnerships and UA 597.1 million from syndication.

The Board of Governors approved an increase of UA 88.1 billion in the Bank’s general callable capital, raising its authorized capital from UA 152 billion to UA 240 billion. The AfDB also made history with its landmark issuance of US$750 million in hybrid capital, which was oversubscribed by US$6 billion—marking the first such issuance by a multilateral development bank.

The AfDB and the World Bank launched "Mission 300" with the ambitious goal of connecting 300 million people to electricity by 2030. G7 countries committed $150 million to the Alliance for Green Infrastructure in Africa, an AfDB initiative.

The International Monetary Fund approved the use of Special Drawing Rights as hybrid capital for multilateral development banks, based on a framework developed by the AfDB and the Inter-American Development Bank. This innovation is expected to leverage SDRs by 4–8 times, providing substantial development financing at no cost to taxpayers in SDR-rich countries.

The Bank’s "High 5s" operational priorities—Light Up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa—improved the lives of more than 65 million people.

This includes 29 million people achieving food security, 14.5 million receiving improved healthcare, 3.6 million gaining access to improved transport, and over 21 million accessing ICT services.

The Africa Investment Forum attracted more than US$29.2 billion in investment interest in 2024, bringing the total since 2018 to over US$225 billion.

The AfDB also marked its 60th anniversary in 2024 by unveiling its Ten-Year Strategy (2024–2033), outlining a vision for a prosperous, inclusive, resilient, and integrated Africa—driven by its youthful workforce, growing markets, clean energy potential, and abundant natural resources.