The continent faces a fresh blow; part of sweeping budget cuts proposed by the new Trump administration in its 2026 budget. The White House intends to halt America’s payments to the African Development Fund (ADF), the AfDB‘s concessional financing arm that targets Africa’s poorest countries
The Fiscal Year 2026 Discretionary Budget Request, submitted to Congress on May 2nd, proposes scrapping $555m in funding earmarked for the AfDB and its concessional fund. The White House calls it a “realignment” of foreign aid to reflect Trump’s America First agenda.
Third-largest donor
If Congress approves the plan, it would mean a significant retreat by Washington from a multilateral institution it has backed for over four decades.
The US is currently the third-largest bilateral donor to the ADF-16 programme (covering 2023-2025), behind Germany ($670m) and France ($611m), according to figures from the Center for Global Development. The US share accounts for about 6% of the $8.9bn raised for the current funding cycle at the end of 2022. Losing US funding would thus directly weaken the AfDB’s ability to invest in roughly 40 African countries.
Established in 1972, the ADF is crucial to the AfDB’s support for fragile states. It provides loans at highly favourable rates for projects in health, education, rural electrification and climate resilience.
Climate policy: an AfDB priority, not America’s
The US withdrawal comes ahead of the AfDB’s annual general meeting in Abidjan at the end of May. This decision is likely to unsettle discussions within the bank’s leadership.
The current president, who is stepping down after two terms, is expected to criticise Trump’s latest whim. During the launch of ADF-16, Akinwumi Adesina championed a new climate-focused funding mechanism for low-income countries. This is precisely the sort of initiative the American president quickly opposed, announcing on his first day back in office America’s exit from the Paris climate accord. He called the agreement “an unfair, one-sided scam”.
The continent faces a fresh blow; part of sweeping budget cuts proposed by the new Trump administration in its 2026 budget. The White House intends to halt America’s payments to the African Development Fund (ADF), the AfDB‘s concessional financing arm that targets Africa’s poorest countries.
The Fiscal Year 2026 Discretionary Budget Request, submitted to Congress on May 2nd, proposes scrapping $555m in funding earmarked for the AfDB and its concessional fund. The White House calls it a “realignment” of foreign aid to reflect Trump’s America First agenda.
Third-largest donor
If Congress approves the plan, it would mean a significant retreat by Washington from a multilateral institution it has backed for over four decades.
The US is currently the third-largest bilateral donor to the ADF-16 programme (covering 2023-2025), behind Germany ($670m) and France ($611m), according to figures from the Center for Global Development. The US share accounts for about 6% of the $8.9bn raised for the current funding cycle at the end of 2022. Losing US funding would thus directly weaken the AfDB’s ability to invest in roughly 40 African countries.
Established in 1972, the ADF is crucial to the AfDB’s support for fragile states. It provides loans at highly favourable rates for projects in health, education, rural electrification and climate resilience.
Climate policy: an AfDB priority, not America’s
The US withdrawal comes ahead of the AfDB’s annual general meeting in Abidjan at the end of May. This decision is likely to unsettle discussions within the bank’s leadership.
The current president, who is stepping down after two terms, is expected to criticise Trump’s latest whim. During the launch of ADF-16, Akinwumi Adesina championed a new climate-focused funding mechanism for low-income countries. This is precisely the sort of initiative the American president quickly opposed, announcing on his first day back in office America’s exit from the Paris climate accord. He called the agreement “an unfair, one-sided scam”.
$100bn financing shortfall
More broadly, Washington’s decision signals shifting priorities in how it funds development abroad. While the White House cuts its support to the ADF, it has pledged $3.2bn for IDA-21, the World Bank’s equivalent concessional window. It also plans to boost funding for the Development Finance Corporation (DFC), which spearheads American investment overseas. The shift shows a clear preference for bilateral and private-sector channels over multilateral ones.
Africa’s funding needs are vast and growing. According to the UN Economic Commission for Africa, the continent requires more than $100bn annually for infrastructure alone. By 2030, the AfDB estimates that Africa will need over $400bn just to catch up with other developing regions. Against this backdrop, America’s withdrawal intensifies the burden on the continent’s other donors.
It also confirms that under Trump, multilateral solidarity is no longer central to American foreign policy. For the AfDB, the crisis is as much political as it is financial. It must either convince other donors to step up, or fundamentally rethink how it raises funds.
$100bn financing shortfall
More broadly, Washington’s decision signals shifting priorities in how it funds development abroad. While the White House cuts its support to the ADF, it has pledged $3.2bn for IDA-21, the World Bank’s equivalent concessional window. It also plans to boost funding for the Development Finance Corporation (DFC), which spearheads American investment overseas. The shift shows a clear preference for bilateral and private-sector channels over multilateral ones.
Africa’s funding needs are vast and growing. According to the UN Economic Commission for Africa, the continent requires more than $100bn annually for infrastructure alone. By 2030, the AfDB estimates that Africa will need over $400bn just to catch up with other developing regions. Against this backdrop, America’s withdrawal intensifies the burden on the continent’s other donors.
It also confirms that under Trump, multilateral solidarity is no longer central to American foreign policy. For the AfDB, the crisis is as much political as it is financial. It must either convince other donors to step up, or fundamentally rethink how it raises funds. (The Africa Report)
