Economics » International Economic Organisations » The African Development Bank and Others

African Development Fund (ADF)

The ADF was established in 1972 as an affiliate of the African Development Bank (ADB) to provide development finance on easier repayment and interest terms than the ADB. The loans of the ADF are granted at no interest, a service charge of 0.7 per cent, a 10-year moratorium and repayment period spanning another 40 years. Thus, the ADF can be described as the ‘soft loan window’ of the ADB group.

However, the ADF facility is specifically meant for poorer countries with per capita GNP of less than $510. About 34 African countries have qualified under that category in the past 20 years. The primary objective of the ADF is to promote the economic development and integration of its members.

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