African Development Bank Seeks $25 Billion for Low-Cost Lending as U.S. Support Wanes

Côte d'Ivoire, 15 December 2025 - The African Development Bank (AfDB) has launched an ambitious fundraising campaign to secure $25 billion in low-cost lending and concessional support for Africa’s poorest countries, warning that traditional donor support, particularly from the United States, is declining at a time when the continent’s infrastructure and development needs are skyrocketing.

The fresh drive for donor pledges comes as the AfDB prepares to replenish its African Development Fund (ADF), the concessional lending arm that provides grants and low-interest loans for projects in low-income African nations.

Since its inception in 1972, the ADF has delivered about $45 billion in financing for critical infrastructure such as roads, irrigation systems, electricity grids, water and sanitation, and social services.

AfDB’s fundraising push, held at a donor-pledging conference, seeks to generate up to $25 billion for the next funding cycle, significantly higher than the roughly $8.9 billion mobilised in the last round. But officials admit that meeting the target will be challenging, especially as some traditional donors reassess their support.

Waning U.S. Support and New Funding Dynamics

The United States, historically one of the AfDB’s largest contributors, has reduced its pledges. In the last funding cycle, Washington accounted for nearly 7 percent of total contributions, about $197 million of the $8.9 billion raised.

But the latest budgetary environment in Washington has seen cuts to multilateral aid, creating a looming $560 million funding gap in the bank’s replenishment plan.

African Development Bank officials have acknowledged the gap publicly and are urging both African member states and international partners to step up.

Several countries have already pledged increased support: Denmark has raised its contribution by 40 percent to about $171 million, and other European and African nations including Kenya, Benin, Ghana and Sierra Leone have increased their commitments.

The AfDB also plans to tap capital markets to raise additional funds, with a target of $5 billion, and to engage philanthropic organisations and institutional investors in blended financing initiatives..