This article was written with support for Auda Nepad
At a moment of pivotal and historic moment for Africa's development funding architecture, African Union leaders held a high-level strategic conference in Luanda, Angola, and advanced the roadmap for the establishment of the African Union Development Fund (AUDF). The conference was chaired by President Joan Manuel Goncalves Lurenzo, the African Union Chairman and President of the Republic of Angola, and brought together alliances of the AUC, Order Nepad and Africa's Multilateral Financial Institutions (AAMFI).
This strategic engagement illustrates a major step towards realizing AU assembly decision 818 (February 2022). This mandated the creation of a dedicated Africa-led funding mechanism to support the implementation of Agenda 2063. The fund aims to bridge the gap between Africa's development ambitions and lasting funding.
Strategic engagement is also a historic milestone, a political leadership of the African Union through the framework of partnerships, union chairs. The union development department through Order Pad. The main fundraiser of the continent through AAMFI.
In his keynote address, President Lourenzo welcomed participants and highlighted the scale of Africa's challenges and opportunities.
“Despite Africa's substantial demographic growth and abundant human, minerals, water, forests and other resources, we face the fundamental challenges of peace and security, and cite economic and social development for the benefit of the people, in favor of all.”
“That's why today's meeting is very strategic and sends a clear signal. Africa is ready to control its fate through Africa's solutions to Africa's challenges.”
In her speech, Oda Nepad CEO Naldos Bekele Thomas set the rationale behind the proposed fund and Order Nepad's strategic role in its development.
“Development funding is not just about numbers, it's about sovereignty. It's about shaping our own development agenda and raising it with our own resources. The AUDF is not intended to compete with existing equipment, but it aims to integrate and amplify them.
“We're not building competitors. We're building connectors. This fund must align its political vision with technical capabilities and capital deployment. That's the foundation for sustainable funding and the only path to achieving Agenda 2063 ambitions.”
AAMFI Chairman Samaila Zubairu highlighted the long-term commitment of financial institutions in Africa.
“This is not ad-hoc engagement. It is the foundation of a long-term institutionalized partnership for Africa's financial sovereignty. AAMFI is ready to mobilize African capital, mobilize structural investments and deliver results in close collaboration between Orderpad and the African Union.”
He also said that the AAMFI institution (representing more than $70 billion in aggregate assets) is ready to launch and support the “quickwin” strategic and transformative continental project as a practical step to prove the fund's potential and attract further investments.
The conference strengthened strong political commitments from African leaders and institutional stakeholders to advance the African Union Development Fund (AUDF) as a sovereign mechanism to fund continental priorities and reduce reliance on external models. The conference noted that the African Union Development Fund would not be a new institution, but rather a replica of existing equipment and interventions, but rather pool and utilize existing mechanisms, equipment and institutions led by AAMFI members. The meeting also committed to identifying a “quickwin.” This is a large continental infrastructure project that can be raised and implemented immediately under the African Union Development Fund Partnership. Angola's Sovereign Wealth Fund recognizes the need for the AU Development Fund to accelerate Africa's developmental goals.
Prior to the launch of the fund at the 36th ordinary session of the African Union Heads of State and Government Parliament, Auda Nepad, AAMFI and the African Union Commission will work to determine the arrangements necessary to make the fund operational.
