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AfDB Launches $5.1bn Plan to Cushion Africa Against Energy, Fertiliser Shocks

 

The African Development Bank (AfDB) Group  has approved a $5.1 billion emergency response framework to help African countries absorb the impact of rising energy and fertiliser prices linked to the ongoing crisis in the Middle East.

The Bank’s Board of Directors approved the Global Energy and Fertilizer Crisis Response Framework (GEFCRF) on September 1, 2026, giving the institution a one-year mechanism to provide targeted financial and policy support to member countries affected by the shocks.

The framework will mobilise an additional $4.1 billion in African Development Bank lending and up to $960 million from the African Development Fund, the Group’s concessional financing arm. The additional resources will take the Bank’s 2026 lending target to about $12.7 billion.

According to the Bank, the crisis is pushing up global prices for energy, food and fertilisers while disruptions to major trade routes are raising transportation costs and worsening supply-chain pressures across economies that rely heavily on imports.

“This framework is about listening and responding to the urgent needs of African countries,” said Abdul Kamara, Acting Vice President for Country and Regional Operations.

He said the initiative would help countries protect households and vulnerable populations, keep food, fertiliser and energy systems functioning and preserve development gains.

“A crisis response must do more than cushion the shock. It must make countries stronger. That is exactly what this framework aims to achieve,” Kamara added.

The framework will focus on four areas, including stabilising macroeconomic conditions through counter-cyclical financing and short-term buffers, protecting critical food, energy and fertiliser supplies, safeguarding essential public spending and vulnerable households, and supporting reforms aimed at building longer-term resilience.

For agriculture, the Bank said the response would also help address the impact of higher fertiliser costs on farmers and food production.

“The Bank’s new Global Energy and Fertilizer Crisis Response Framework gives us a way to respond to the pressures African farmers are facing as the conflict in the Middle East disrupts global trade,” said Martin Fregene, Officer in Charge Vice President for Agriculture, Human and Social Development.

Fregene said expensive or limited access to fertiliser could force farmers to reduce usage and ultimately hurt harvests.

“Access to finance is part of the solution, helping businesses keep fertilizer moving to farmers, while we work to build stronger fertilizer markets and more local supply in Africa,” he added.

The AfDB said the intervention is designed to provide immediate relief while supporting measures that reduce African countries’ dependence on volatile external energy, food and fertiliser markets.

The framework is demand-driven, with financing and policy support expected to be tailored to the vulnerability and specific needs of individual countries. It will expire one year after approval and will be reviewed before any extension.

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