African Development Bank launches $5.1 billion plan to tackle energy and fertiliser crisis in Africa

The African Development Bank has approved a $5.1 billion framework to help African countries manage rising energy and fertiliser costs amid Middle East-related trade disruptions. The one-year programme will provide targeted financing for food, energy and fertiliser supplies, vulnerable households, macroeconomic stability and long-term reforms to strengthen economic resilience.

The African Development Bank (AfDB) Group has approved a new response framework of up to $5.1 billion to help African countries deal with the growing impact of global energy and fertiliser price shocks, while strengthening their resilience against future crises.

The Global Energy and Fertilizer Crisis Response Framework (GEFCRF) was approved by the Bank’s Board of Directors on September 1, 2026. The initiative is designed to provide rapid, targeted financial support to countries facing higher energy, food and fertiliser costs amid continuing disruptions to global trade.

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 raise the Bank Group’s overall 2026 lending target to approximately $12.7 billion.

The one-year framework will be demand-driven, with financial and policy support tailored to the vulnerability and specific requirements of individual countries. It will be reviewed after one year before any extension.

The African economies are facing heightened pressure from the continuing crisis in the Middle East, which has contributed to higher global prices for energy, food, fertilisers and other commodities. Many African countries remain heavily dependent on imports of these essential products.

Disruptions to major maritime corridors and global trade routes are adding to the problem by raising transportation costs, delaying deliveries and exposing weaknesses in supply chains.

The AfDB framework will operate through four key pillars. The first focuses on stabilising macroeconomic conditions through rapid counter-cyclical financing and short-term financial buffers. The second seeks to secure supplies of food, energy and fertilisers through emergency and trade finance, while supporting vulnerable populations and stabilising markets.

The third pillar aims to protect essential public spending and vulnerable households, particularly women and youth, through targeted social protection. The fourth will support medium- and long-term reforms aimed at reducing dependence on volatile international markets, diversifying supply chains and improving fiscal resilience.

AfDB Acting Vice President Abdul Kamara said the initiative would help countries keep food, fertiliser and energy systems functioning while protecting households and preserving development gains.

Martin Fregene, Officer in Charge of the Bank’s Agriculture, Human and Social Development portfolio, highlighted the pressure on African farmers. He said expensive or unavailable fertilisers could force farmers to reduce application rates, potentially hurting crop yields.

According to Fregene, financing can help businesses maintain the movement of fertilisers to farmers while efforts continue to develop stronger fertiliser markets and increase local supply across Africa.

The initiative builds on the AfDB’s earlier experience with the COVID-19 Response Facility and the African Emergency Food Production Facility, combining immediate crisis support with measures aimed at building more self-reliant and resilient African economies.