11 November 2010
Seoul, Korea
Canada is committed to reducing poverty and improving living conditions in Africa. In keeping with this goal it contributes to the African Development Fund (ADF) which promotes economic and social development in 38 least developed African countries. The Fund is administered by the African Development Bank, the premier development finance institution in Africa.
On November 11, Canada announced that it had fulfilled its G-20 commitment to replenish the African Development Fund by pledging $325.6 million over three years (2011-2013).
Canada’s commitment was formally pledged at the Twelfth Replenishment of the African Development Fund (ADF-12) on October 7, 2010. This pledge is in line with the G-20 commitment made in Pittsburgh in October 2009 and ratified in Toronto in June 2010 to ensure that the ADF is appropriately funded. Canada’s pledge of $325.6 million represents an increase of 8 per cent from its previous contribution.
The ADF provides grants and concessional resources — long-term loans at essentially zero interest — to invest in development projects and programs in low income African countries. Donors replenish its resources every three years.
The donor countries are Argentina, Austria, Belgium, Brazil, Canada, China, Denmark, Egypt, Finland, France, Germany, India, Italy, Japan, Korea, Kuwait, the Netherlands, Norway, Portugal, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, the United Kingdom and the United States of America.
At the ADF-12, donors endorsed a policy framework for a three-year period that focuses on infrastructure, governance, regional integration and support for fragile states. It places special emphasis on African private sector development, food security and agricultural productivity and the incorporation of climate change adaptation and mitigation into the Fund’s work. Also, donors expressed strong support for the continuation of ongoing institutional reforms to build the capacity of the African Development Bank as the leading African development institution.
