The TSF envelope

the-transition-support-facility-history

History

In the early 2000s, the Bank was one of the first multilateral organizations to institutionalize the fragility agenda, highlighting the Bank’s longstanding engagement in addressing fragility and building resilience.

In twenty years, strategic, policy and programmatic shifts were undergone in line with increased understanding of the drivers of fragility.

In recognition of the various drivers of fragility, the Bank established a specific financing mechanism geared to assist regional member countries in fragile settings or in transition: The Transition Support Facility (TSF).

TSF in the ADF Resource allocation

The Transition Support Facility was established in 2008 (initially under the name Fragile States Facility) as an operationally autonomous entity within the African Development Bank (AfDB) Group. The TSF is a set aside of the African Development Fund (ADF) which is the AfDB concessional window dedicated to African low-income countries. The TSF was established, inter alia, to complement the Performance-Based Allocation (PBA) of ADF resources that tend to be low relative to needs and legitimate demands from states affected by fragile and conflict-affected situations.

Being a set aside envelope of the ADF, the TSF is replenished every three year along with the ADF replenishment cycle.

Recipients

In 2021, 20 out of 37 countries were eligible to the TSF:

Burundi

Madagascar

Chad

Mali

Central African Republic

Mozambique

Comoros

Niger

Congo DRC

Sierra Leone

Eritrea

Somalia

Gambia

South Sudan

Guinea

Sudan

Guinea Bissau

Togo

Liberia

Zimbabwe

Since then, it has mobilized a total of UA 3.7 billion additional development finance for a set of low-income countries where fragile situations remain a challenge to a sustainable and inclusive development.

Objectives and architecture

It is a fast, simple and flexible disbursement mechanism designed to help countries consolidate peace, build resilient institutions, stabilize their economies and lay the foundations for inclusive growth. It provides support through three pillars: 

  • Pillar I provides supplemental resources for national, regional and private sector operations to support countries in their state-building efforts; 
  • Pillar II targets arrears-clearance to enable eligible countries normalize relations with the international community and access debt relief; and 
  • Pillar III provides support to critical capacity building interventions and technical assistance that cannot be adequately addressed through traditional projects and instruments

While historically the bulk of TSF resources have come from the African Development Fund (ADF), the Facility is increasingly attracting additional resources and voluntary contributions from donors or third parties that can make direct contributions to each pillar of the TSF at any time or earmark resources for a specific country, sector and type of activity or project.

As a special purpose entity within the Bank Group, the TSF is designed to complement and leverage the Bank’s other instruments and sources of support, such as for Regional Operations or Private Sector Operations. As a legally distinct entity, it has the potential for additional flexibility in the modalities of its support and is the Bank’s preferred vehicle for resource mobilization in fragile situations.

ADF Allocations to Transition States over the last Five ADF Cycles

The level of resources channeled to transition states have significantly increased over the last five ADF cycles.

The share of country allocations (PBA and TSF Pillar I) towards fragile situations country moved from 16% to 57% between ADF-11 and ADF-15. The increasing support to transition states was driven by two key factors:

  • The number of countries eligible to the TSF moved from 9/41 to 20/37 between ADF-11 and ADF-15. 
  • The size of the envelope available for country allocations. 

 

ADF Cycle

ADF Size

Total Country Allocations

Fragile Situations (Nbr of countries)

PBAs

TSF Pillar I (Country Allocations)

Total Country Allocations (PBA and TSF Pillar I)

Transition States

Non-Transition States

Transition States

% of country allocations towards Transition States

Non-Transition States

% of country allocations towards Non-Transition States

ADF-11

5761

4249

9/41

446

3549

254

700

16%

3549

84%

ADF-12

5806

4142

12/41

495

3242

405

900

22%

3242

78%

ADF-13

4825

3571

17/40

801

2187

582

1384

39%

2187

61%

ADF-14

4217

2830

20/39

815

1384

631

1446

51%

1384

49%

ADF-15

5410

3502

20/37

1188

1515

799

1988

57%

1515

43%