Thursday, October 23, 2025 - 19:29:45
Broken clouds Columbus, United States | 11°C | Broken clouds

African Lenders Turn to Bonds as Donor Support Fades

7

Facing a retreat in Western donors, African public lenders are increasingly turning to capital markets to fund development projects. The African Development Bank’s (AfDB) concessional arm, the African Development Fund (ADF), plans to issue bonds for the first time starting in 2027, aiming to raise $5 billion every three years. The shift was accelerated when the US cut over $550 million in funding, forcing the ADF to scale back a $25bn capital-raising plan and seek alternative finance. While the AfDB’s AAA rating offers a buffer, questions remain about lending at concessional rates while borrowing at market costs. Other lenders such as Afreximbank and the Trade and Development Bank have already tapped markets despite unresolved creditor status. With aid dwindling and demand rising, African banks are pushing innovation in finance to stay central to the continent’s growth.

Financial Times

Share this article

Categories

Headlines

africa.com Header logo