AfDB sets aside up to $5.1bn to cushion African economies from energy shocks

The African Development Bank Group has approved a response framework of up to $5.1 billion to help African countries manage the impact of rising energy and fertiliser prices and disruption to global supply chains.

Approved on 1 September, the Global Energy and Fertiliser Crisis Response Framework (GEFCRF) is intended to provide short-term support to countries affected by the current crisis while reducing their exposure to future shocks.

The framework will be financed through an additional $4.1 billion in African Development Bank lending and up to $960 million from the African Development Fund, the Bank Group’s concessional lending arm. The additional resources will increase the Bank’s 2026 lending target to approximately $12.7 billion.

The response will remain in place for one year from the date of approval, after which it will be reviewed. Funding will be demand-driven, with the level and type of support determined by individual countries’ vulnerability and requirements.

The Bank said the ongoing crisis in the Middle East is increasing global prices for energy, food, fertiliser and other commodities on which many African economies remain heavily dependent. Disruption to trade routes and maritime corridors is adding pressure through higher transport costs, delayed deliveries and more fragile supply chains.

Energy security is one of the framework's four pillars. Emergency and trade finance will help protect critical food, energy and fertiliser supplies, while other measures will provide short-term macroeconomic support and protect priority public spending.

The longer-term component aims to reduce dependence on volatile external energy, food and fertiliser markets. The Bank intends to support reforms that encourage more diversified supply chains, regional solutions and greater capacity to respond to future crises.

“This framework is about listening and responding to the urgent needs of African countries, helping them protect households and vulnerable populations, keep food, fertiliser and energy systems functioning, and preserve hard-won development gains while building greater resilience for the future,” said Abdul Kamara, Acting Vice President for Country and Regional Operations. “A crisis response must do more than cushion the shock. It must make countries stronger. That is exactly what this framework aims to achieve.”

For African energy systems, the immediate financing response sits alongside a longer-term question: how far countries can reduce their exposure to imported energy and global supply disruptions before the next external shock arrives.

Source: African Development Bank Group

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