The Norwegian government has announced a commitment of more than NOK3 billion, equivalent to about $300 million, to support poverty reduction, economic growth and resilience-building in Africa’s lowest-income countries over the next three years.
According to a statement issued by the Royal Norwegian Embassy in Abuja, the funding will be channelled through the African Development Fund (ADF), the concessional financing arm of the African Development Bank Group, for the 2026–2028 period. The initiative is aimed at strengthening economies, improving governance and helping vulnerable nations withstand future economic and climate-related shocks.
The African Development Fund currently provides support to 37 of the continent’s poorest countries, focusing on critical areas such as infrastructure development, institutional reforms, sound economic management and sustainable development. The fund is also designed to assist countries in building stronger public institutions capable of delivering inclusive growth and improving living standards.
Norwegian Minister of International Development, Asmund Aukrust, said creating jobs and ensuring decent livelihoods remain the most effective ways of helping people escape poverty. He stressed that sustainable employment and fair wages are essential ingredients for economic transformation and social stability.
According to Aukrust, the African Development Fund plays a vital role in achieving these objectives because it enjoys broad legitimacy among African countries and possesses the technical expertise needed to support long-term development programmes.
He noted that one of the key priorities of both the African Development Bank and the African Development Fund is assisting governments in mobilising domestic resources through improved tax systems and prudent revenue management. Strengthening these areas, he explained, enables countries to attract private sector investments, stimulate economic activities and create employment opportunities.
The minister emphasized that reducing poverty cannot depend solely on foreign aid but must be driven by resilient economies capable of generating sustainable growth and financing their own development priorities.
He added that Norway’s support is intended to help countries build stronger institutions and achieve climate and sustainability goals while reducing dependence on external assistance over time.
“The objective of our contribution is to promote resilient economies and stable societies,” Aukrust said. “The fund has consistently demonstrated its capacity to assist poor countries in pursuing long-term climate and development goals, which ultimately leads to reduced reliance on aid.”
The announcement also highlighted the increasing ownership of the African Development Fund by African countries themselves. When the fund was established in 1972, none of the continent’s nations contributed financially. Today, 25 African countries are making contributions to the fund, reflecting growing economic capacity and a stronger commitment to collective development.
Aukrust described the trend as evidence of the economic progress achieved by many African nations and a sign that countries on the continent are increasingly taking responsibility for supporting their neighbours that still face severe developmental challenges.
He noted that the rise in African contributions demonstrates a growing desire among member states to shape and own the institutions driving the continent’s development agenda. According to him, this increasing sense of responsibility and solidarity is crucial for fostering long-term stability and prosperity across Africa.
Experts believe the additional Norwegian funding will provide much-needed resources for infrastructure projects, healthcare, education, climate adaptation and institutional reforms in several low-income countries. They say such investments are particularly important at a time when many African nations are grappling with rising debt burdens, inflationary pressures, food insecurity and the impact of climate change.
The support is also expected to strengthen efforts aimed at achieving the United Nations Sustainable Development Goals and boosting economic opportunities for Africa’s rapidly growing youth population.
Analysts note that with millions of young Africans entering the labour market every year, investments that promote job creation, economic diversification and stronger institutions will be critical to ensuring social stability and inclusive growth.
By reinforcing the African Development Fund and encouraging greater African participation in development financing, Norway says it hopes to support a future in which African countries become more economically self-reliant and less dependent on external aid, while creating the foundations for sustainable prosperity across the continent.
