Resource allocation framework
ADF resources are channeled primarily through the Performance Based Allocation (PBA) framework, and indirectly through the Regional Operations (RO) and Transition Support Facility (TSF) envelopes. While a strong emphasis is on performance, the Fund in addressing the root causes of vulnerability continue to support and enhance engagement in regional operations and countries in fragile situations.
Resources set aside for the Project Preparation Facility (PPF) and the Private Sector Enhancement Facility (PSF) contribute to help develop a strong pipeline of bankable transformational projects and overcome the constraints imposed by the African Development Bank’s limited risk capital headroom for low-income countries and countries in fragile situations.
The Fund work closely with other development partners, especially in the context of the G20 Compact with Africa and other platforms, to deliver the full pipeline of ADF-15 operations.
The Partial Risk Guarantee (PRG) covers political risk while the Partial Credit Guarantee (PCG), covers payment risk.