Improving Governance in Africa
What is the relationship between AfDB and ADF?
The African Development Bank and the African Development Fund are two entities within the AfDB
Group that are separate both legally and financially. They have distinct assets and liabilities.
The African Development Bank is the rated entity that raises funds from the capital markets to on-
lend to the most credit worthy countries of Africa and to viable sector projects.
The African Development Fund (ADF) is the soft loan lending arm of the AfDB group and is primarily
funded through contributions from donors. In effect it provides highly concessional loans and grants
to the poorest countries of Africa.
The AfDB has an equity participation in the Fund, and makes annual contribution from its net income
to ADF. There is no recourse to the AfDB for obligations in respect of any of the ADF liabilities and
vice-versa. There can be no transfer of exposure between these two institutions, as they are separate.
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