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.

The Performance Based Allocation (PBA)

PBA are calculated on a yearly basis to ensures a strong alignment between performance and resource allocation.
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The Transition Support Facility

In the early 2000s, the Bank was one of the first multilateral organizations to institutionalize the fragility agenda, highlighting...
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The Project Preparation Facility: PPF

The PPF was established in 2000 with an initial amount of UA 19.2 million drawn from the ADF-8 replenishment.
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Regional Operation

The regional operations (RO) envelope increased from 21% to 25%. Resilience and fragility considerations coupled with soft components related to policy
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Risk Mitigation Instruments

Partial Risk Guarantee (PRG)
Partial Credit Guarantee (PCG)
Private Sector credit enhancement Facility (PSF)
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The Performance Based Allocation (PBA)

PBA are calculated on a yearly basis to ensures a strong alignment between performance and resource allocation.
Learn more

The Regional Envelope

A fundamental element of the AfDB Group’s core activities and one of the ADF’s comparative advantages.
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The Transition Support Facility

In the early 2000s, the Bank was one of the first multilateral organizations to institutionalize the fragility agenda, highlighting...
Learn more

The Project Preparation Facility: PPF

The PPF was established in 2000 with an initial amount of UA 19.2 million drawn from the ADF-8 replenishment.
Learn more