Sierra Leone, amongst five other African nations, has pledge $3 million towards the replenishment of the African Development Fund (ADF).

In seeking greater ownership and control over development financing, these five countries, The Gambia, Ghana, Liberia, Sierra Leone, and Sudan have committed a total of $16 million to the ADF, the concessional lending arm of the African Development Bank Group.

This marks a staggering 220% increase from the previous funding cycle’s total of $5 million. The announcement was made during a key constituency meeting at the African Development Bank’s (AfDB) Annual Meetings in Abidjan, Côte d’Ivoire, and is seen as a significant step towards the continent’s self-reliance in development financing.

Historically, African nations have often been viewed as passive recipients of international development aid. However, this latest pledge indicates a paradigm shift, a move towards greater responsibility and participation in shaping their development trajectories.

The commitment from these five nations, particularly Sierra Leone, underscores an initiative led by Finance Minister Sheku Bangura (chair of constituency’s governors) which aims to enhance fiscal resilience and accountability within Africa.

During the meeting, Bangura emphasized the transformation journey undertaken over the past three years. Reflecting on the challenges faced, he stated, “Together, we turned challenges into stepping stones, building resilience, amplifying our voice, and unlocking greater financing flows for our countries.”

The distribution of contributions among the nations are: Ghana increased its commitment to $5 million, while Sudan, Liberia, and Sierra Leone each pledged $3 million, with The Gambia contributing $2 million. This collaborative effort has raised the number of contributing African nations from eight to 13, representing a remarkable 62.5 percent increase in continental participation. This strategic allocation aims to maximize the impact of the funds on each nation’s developmental agenda while collectively empowering the ADF to play a more significant role in financing African projects.

With the increased financial commitments, a concurrent emphasis on domestic resource mobilization emerges as a critical theme. The ADF’s leadership exhibited a tangible commitment to enhancing local financing capabilities. As The Gambia’s reforms have doubled its tax-to-GDP ratio within two years, showcasing the tangible benefits of enhancing fiscal frameworks. Similarly, Ghana’s advancements in digital revenue systems have bolstered compliance, contributing significantly to its fiscal space enlargement.

Sierra Leone has been proactive in initiating projects that stimulate domestic investment while also reinforcing its financial commitments to the ADF. This dual approach allows the nation to capitalize on external funding while simultaneously boosting its domestic revenue streams.

As part of its strategic vision under Bangura’s leadership, it aims to transition from relying solely on ADF resources to leveraging the broader range of financing offered by the AfDB, effectively chasing private capital investments. This strategic pivot will encompass several key themes:

• Attracting Private Capital: Allocating resources in a way that fosters a conducive environment for foreign direct investment and domestic entrepreneurship.
• Transforming Remittance Flows: Looking to convert remittances into viable financial instruments that can fund development projects, thus tapping into the economic power of the diaspora.
• Active Governance Engagement: Maintaining vigilant involvement in the governance structure of the Bank to ensure that Sierra Leone’s interests and development agendas are prioritized.

Bangura articulated this vision poignantly, stating that “the message from the Bank and development partners is clear: future resources will hinge on performance, selectivity, and a reduced grant component in financing.”

The meeting celebrated the contributions of outgoing Executive Director Rufus Darkortey and emphasized the importance of leadership continuity. With the arrival of two new Governors: Dr. Cassiel Ato Forson, Ghana’s newly appointed finance minister, and Augustine Kpehe Ngafuan, Liberia’s minister for finance and development planning, the consortium is positioned for a fresh approach to strategy that builds on existing successes while addressing new challenges.

Darkortey’s exit reflects over 17 missions aimed at enhancing operational engagements across member countries. Noteworthy projects in the pipeline include the construction of the Sierra Leone country office and ongoing discussions around critical infrastructure like the Lungi Bridge project.

The collaborative effort among these five nations emphasizes the importance of national initiatives aligned with regional development goals. Bangura touchingly remarked, “We may not control global tides, but we can control how we navigate them.”

As Sierra Leone engages in a more proactive partnership with the ADF, the emphasis on domestic resource mobilization and private-sector development will be important in tightening the link between growth and sustainable development. The pledge signals a new Dawn as an agile reformer and a credible investment destination in Africa’s evolving financial landscape.