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Sierra Leone, along with four other African Development Bank (AfDB) member countries, has committed to contributing at least $1 million to the replenishment of the African Development Fund (ADF), the concessional window of the Bank Group.
The agreement was signed during the African Development Bank Group’s 2023 Annual Meetings held in Sharm El-Sheikh, Egypt.
The five-member constituency consisting of The Gambia, Ghana, Liberia, Sierra Leone, and Sudan will start contributing to the ADF from the next replenishment cycle in 2025.
With a significant number of fragile states among its client countries, the African Development Fund plays a crucial role in poverty reduction, economic development, and social progress in least-developed African nations by providing concessional funding for various projects and programs.
The agreement, which was signed by the African Development Bank Governors or Temporary Governors of the five countries, emphasizes the importance of domestic revenue mobilization. Member countries have committed to allocating a minimum of $3 million annually to enhance internal revenue flows, thereby unlocking more funds for accelerated development. Another key priority outlined in the agreement is the expansion of local private sector-led economic growth through support for small businesses.
In addition to contributing to the African Development Fund, the signatory countries have also pledged to invest $1 million to improve their shareholdings within the Bank Group. Collectively, each member of the constituency will invest a minimum of $8 million annually from their national budgets to implement the agreement, which also covers climate mitigation efforts.
Rufus Darkortey, the Executive Director for the constituency, expressed his optimism about the agreement, stating that it would enable the five countries to implement policies that enhance economic resilience.
He emphasized that this partnership would accelerate development and growth in each respective country while complementing the support received from development partners.
Sierra Leone’s Deputy Finance Minister, Bockarie Kalokoh, welcomed the agreement, highlighting its importance in strengthening the private sector and demonstrating the country’s commitment to allocating part of the national budget to scale up these initiatives.
Liberia’s Deputy Minister for Economic Management, Augustus Flomo, reiterated his country’s dedication to the agreement and outlined plans to increase budget allocations to the specified sectors over time.
Muhammad Bashar Muhammad, Sudan’s Undersecretary of Economic Planning, expressed his commitment to the agreement despite the challenging situation in his country, emphasizing its alignment with Sudan’s development plans.
Dr. Mohammed Amin Adam, representing Ghana’s Finance Ministry, emphasized that the agreement aligned with Ghana’s goal of increasing domestic revenue from 15% in 2022 to 18.7% by 2026. He further stressed the significance of taking home-grown initiatives to support Africa’s development efforts while leveraging external resources.
The agreement signed by these five African Development Bank Governors signifies a collective effort to bolster economic resilience, stimulate domestic revenue mobilization, and foster sustainable development in Sierra Leone and other member countries. It represents a positive step towards self-sufficiency and increased collaboration among African nations to drive economic growth and address pressing challenges.
