African Development Fund advances regional projects ahead of ADF-17 replenishment

The African Development Fund moved to raise its profile ahead of its 17th replenishment cycle, citing the Lobito Corridor and Kazungula Bridge as proof of impact, with the final pledging session set for December 2025. The Fund's blended concessional model, which leveraged $330 million in co-financing from 10% of Zambia's resources for the Lobito Corridor, illustrates how concessional finance de-risks regional infrastructure relevant to critical-minerals supply chains.

The African Development Bank Group's African Development Fund (ADF), Africa's largest concessional lender, is elevating its profile ahead of its 17th replenishment cycle. At a virtual briefing co-hosted with the African Center for Economic Transformation and the Global Strategic Communications Council on 29 July, partners explored the Fund's role in advancing economic transformation in fragile states. Valerie Dabady, ADF Manager for Resource Mobilization and Partnerships, stressed the Fund's catalytic model blending grants, concessional loans, and co-financing to target climate resilience and regional integration, with emerging strategies including market borrowing.

The Fund's work affects governments, infrastructure developers, and sectors tied to regional integration, including logistics, agriculture, mining, and critical minerals for the global energy transition. Zambia's Joseph Chanda cited the Lobito Corridor linking Angola, the DRC, and Zambia, where committing 10% of national resources leveraged over $330 million in regional co-financing including a $500 million ADF grant. The Kazungula Bridge, completed in 2021 with $68 million in ADF support, connects Zambia and Botswana, streamlining customs and cutting transit times along the North-South Corridor.

Donor countries and development partners should engage the ADF-17 replenishment process, with a virtual consultative meeting planned for September, an in-person session in Lusaka in October where Zambia presents national project outcomes, and the final pledging session in December 2025. Governments should study the Lobito Corridor and Kazungula Bridge as models for leveraging concessional finance to de-risk private participation. Kerezhi Sebany of the ONE Campaign urged proactive storytelling to build transparency, trust, and stronger partnerships around the Fund's track record.

Key figure — Co-financing leverage: 10% of Zambia's resources unlocked over $330 million for the Lobito Corridor