HELSINKI — Finland will contribute €45 million to the African Development Fund (AfDF) to support sustainable economic growth and industrialisation in Africa’s poorest countries, the Ministry for Foreign Affairs said Wednesday.
The pledge forms part of the 17th replenishment of the African Development Fund (AfDF-17) for the 2026–2028 cycle, agreed by donor countries in London on Dec. 15. The overall funding target for AfDF-17 is $11 billion, with the fund set to begin borrowing from financial markets to expand its lending capacity.
Finland’s contribution marks a decrease from the previous replenishment cycle, reflecting budget savings in its development cooperation programme, the ministry said.
The African Development Fund aims to reduce poverty by promoting economic and social development, particularly in countries that are not yet creditworthy for loans from the African Development Bank. It finances climate-resilient infrastructure, institutional capacity-building and reforms to strengthen domestic revenue systems, while promoting gender equality, youth employment and private sector development.
“Finland welcomes the African Development Bank Group’s increasing focus on private sector cooperation in the least developed African countries to boost sustainable economic growth and industrialisation,” Minister for Foreign Trade and Development Ville Tavio said. “The AfDF must be used to improve the business environment in the poorest countries and to reduce investment risks. The aim must be sustainable economic growth led by the private sector.”
The AfDF brings together a broad group of donors, with a record 23 African countries participating as contributors in the new cycle. About a quarter of the fund’s activities are designed to promote regional economic integration and reduce trade barriers.
Between 2023 and 2025, nearly half of AfDF support was allocated to projects strengthening the private sector, a share expected to increase further. From 2015 to 2024, AfDF-backed projects helped more than three million people gain access to electricity, a figure projected to rise to 10 million by 2030. Food security has improved for more than 92 million people, according to the ministry.
Under the new replenishment cycle, AfDF programmes aim to provide financing to 36,000 companies, improve transport connections for 37.4 million people and expand access to clean water for 9.1 million people.
In addition to its core contribution, Finland will provide €13.34 million between 2026 and 2028 to support debt sustainability and debt relief in AfDF recipient countries under the Multilateral Debt Relief Initiative (MDRI). Finland committed to the initiative in 2005.
The MDRI supports heavily indebted poor countries by canceling eligible debts once reform and poverty-reduction benchmarks are met. It involves the World Bank’s International Development Association, the International Monetary Fund and the African Development Fund.
