Africa Charts Path Toward Financial Sovereignty with Proposed Continental Development Fund

In a pivotal and historic moment for Africa’s development financing architecture, African Union leaders convened a High-Level Strategic Meeting in Luanda, Angola, to advance the  roadmap for establishment of the African Union Development Fund (AUDF). The meeting was chaired by H.E. President João Manuel Gonçalves Lourenço, President of the Republic of Angola and Chairperson of the African Union, bringing together the AUC,  AUDA-NEPAD, and the Alliance of African Multilateral Financial Institutions (AAMFI).

This strategic engagement marks a major step toward the realisation of the AU Assembly’s Decision 818 (February 2022), which mandated the creation of a dedicated, African-led financing mechanism to support the implementation of Agenda 2063. The Fund is intended to bridge the gap between Africa’s development ambitions and the persistent financing shortfalls that continue to constrain progress across infrastructure, energy, agriculture, health, and industrialisation.

The strategic engagement was also an historic milestone, bringing together in a partnership framework, the political leadership of the African Union through the Chairperson of the Union; the development arm of the Union, through AUDA NEPAD; and the key financing stakeholders of the continent through AAMFI.

In his keynote remarks, President Lourenço welcomed the participants and underlined the scale of Africa’s challenge and opportunity:

“Despite Africa’s substantial demographic growth and abundant human, mineral, water, forest, and other resources, we face fundamental challenges of peace, security, and—above all—economic and social development for the benefit of our peoples.”

“That is why today’s meeting is so strategic and sends a clear signal: Africa is ready to take control of its destiny through African solutions to African challenges.”

In her address, AUDA-NEPAD CEO Ms. Nardos Bekele-Thomas laid out the rationale behind the proposed Fund and the strategic role of AUDA-NEPAD in its development:

“Development financing is not just about numbers—it is about sovereignty. It’s about shaping our own development agenda and financing it with our own resources. The AUDF is not intended to compete with existing instruments. It is designed to consolidate and amplify them, creating a coherent, African-led platform for delivering results at scale.”

“We are not building a competitor—we are building a connector. This Fund must align political vision with technical capacity and capital deployment. That is the foundation of sustainable financing, and it is the only path to achieving the ambitions of Agenda 2063.”

AAMFI Chair Mr. Samaila Zubairu emphasised the long-term commitment of African financial institutions:

“This is not an ad hoc engagement—it is the foundation of a long-term, institutionalised partnership for Africa’s financial sovereignty. AAMFI stands ready to mobilise African capital, structure investments, and deliver results in close collaboration with AUDA-NEPAD and the African Union.”

He also noted that AAMFI institutions—representing over $70 billion in aggregated assets—are prepared to initiate and support “quick win” strategic and transformative continental projects as a practical step toward proving the Fund’s potential and attracting further investment.

The meeting reinforced strong political commitment from African leaders and institutional stakeholders to advance the African Union Development Fund (AUDF) as a sovereign mechanism for financing the continent’s priorities and reducing reliance on external models. The meeting noted that the African Union Development Fund would not be a new institution or duplicate existing instruments or interventions, but would rather pool and leverage on existing mechanisms, instruments and institutions, led by the AAMFI members. The meeting further committed to the identification of “quick wins” – high impact continental infrastructure projects that can be immediately financed and implemented under the African Union Development Fund Partnership. Angola’s Sovereign Wealth Fund acknowledge the need for  an AU Development Fund to accelerate Africa’s developmental goals. 

Ahead of the launch of the Fund at the 36th Ordinary Session of the Assembly of Heads of State and Government of the African Union, AUDA NEPAD, AAMFI and the African Union Commission will work to finalise the necessary arrangements for the operationalisation of the Fund.