Press Release
27 November 2007
Douglas Alexander announces doubling of UK support for African Development
Fund
 A big increase in UK backing for African economic growth and social
development was announced in Tanzania today by International Development
Secretary Douglas Alexander.
The UK is more than doubling its support and will contribute £417 million to
the African Development Fund (ADF) over the next three years. The fund – which
is part of the Africa Development Bank group – gives grants and long term,
interest-free loans to poor African countries to help them fight poverty and
increase economic growth.
The extra money will help the Fund work over the next three years with 40
African countries to build better infrastructure – including improved water and
sanitation and new energy projects. It will also mean that the Fund can help to
strengthen economic and regional links between African nations and put more
money into fragile states, like the Democratic Republic of Congo and Sierra
Leone that have recently come out of conflict.
Douglas Alexander announced the funding in Tanzania on the final day of a
visit to East Africa:
“This is the biggest contribution that the UK has made to the African
Development Fund. It demonstrates our commitment to help build African
institutions, our confidence in the reform process being undertaken by the
African Development Bank, and our belief that the Fund can effectively support
development in Africa’s poorest countries. I’m calling for all donors to
increase their support for the Africa Development Fund at the final
replenishment meeting in London in December.
At Gleneagles in 2005 we made a promise to double aid to Africa by 2010 and
to building African institutions, and today’s announcement shows our clear
commitment to honour this pledge. Countries like Tanzania, where I am today,
will benefit from the increase in funding, both for projects in Tanzania and
through closer regional integration.
The African Development Bank is a major source of development finance in
Africa and is crucial in helping us work towards meeting the Millennium
Development Goals. In recent years the Bank has made significant reforms to
become more effective.”
Donald Kaberuka, President of the African Development Bank, said;
“I greatly welcome this announcement and applaud the continuing leadership
shown by the UK in its support to Africa and in implementing the commitments
made by the G8 at Gleneagles and repeated at Heiligendamm. I value the
confidence shown in the Bank as an African institution. I know this is based on
an expectation of improved performance by the Bank. I am determined to deliver
and to be judged on our results.
“The Bank is changing into an organisation which is dynamic, flexible, and
able to respond better to the diverse needs of African countries. Our
contribution to poverty reduction is through growth, by helping to improve the
productive capacity in Africa, for example through investments in
infrastructure, in skills development, economic integration as well as stepping
up our engagement in fragile states. We call on other donors to follow the UK
example in showing its support to the African Development Bank.”
Related Links
Notes to Editors:
1. Douglas Alexander made today’s announcement during a 5 day visit to East
Africa. He has visited Uganda as part of the Commonwealth Heads of Government
Meeting and spent two days in Kenya looking at how the UK is supporting the
country’s fight against Malaria. He is currently in Tanzania where he will meet
the President and Finance Minister to discuss British backing for the country’s
efforts to reduce poverty and encourage economic growth.
2. The ADF is topped up every three years with the new period running from
January 2008 to 2010.
3. Over the last 3 years, ADF projects have had a real impact across Africa:
- Almost 6 million people now have improved access to health services and more
than 40,000 jobs have been created.
- In the energy sector, ADF projects were
able to leverage three times its own resources in co-financing. Overall, more
than 700,000 households across Africa were provided with new or improved access
to electricity.
- In Eritrea an ADF Livestock Development Project provided
infrastructure and capacity building that led to farmer’s incomes rising by
around 65%.
- The Second Electricity Project in Mozambique expanded the national
grid to rural and peri-urban areas. It provided electricity to nearly 5,000
rural families, connected village schools, health clinics and community centres
and contributed to a fivefold increase in the number of tourist lodges operating
in the area.
- The Uganda Health Sector Strategic Plan Project sought to
strengthen health services in rural areas with a specific focus on mental
disorders. The project rehabilitated and equipped 32 primary health centres and
6 mental health units, also providing clean water and latrines and trained
village health teams.
- ADF has supported projects to enhance environmental
sustainability, including in Niger where more than 36,000 hectares of land were
reforested and 373,660 hectares of natural forests were brought under
sustainable use. In addition, more than 101 rural markets and 120 nurseries were
established to improve incomes.
For more information contact DFID Press Office +44 207 023 0600.
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