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Bank Group Policy on Results-Based Financing
The mandate of the African Development Bank Group (hereinafter referred to as the “Bank Group” or the “Bank”), as set out in its Agreements1 , is to contribute to sustainable economic development and social progress of its Regional Member Countries (RMCs), individually and collectively. In this regard, the Bank Group and other multilateral development banks (MDBs) are being called upon to play a bigger role, to do more, and to innovate towards meeting the growing needs of clients, within a volatile, uncertain and competitive development landscape. These calls have, in turn, increased attention to delivering measurable results from public expenditure. The Paris Declaration on Aid Effectiveness (2005) and its subsequent coordination platforms, such as the Accra Agenda for Action (2008) and Busan (2011) Forum on Aid Effectiveness, all seem to converge at greater use of results-based financing approaches to demonstrate measurable results from aid investments. Within the context of limited resources and shrinking development assistance, many development partners have responded to the growing demand, by introducing Results-Based Financing (RBF)2 as an instrument that aligns incentives with outcomes.