ADFD does investments in two ways: (a) through equity participation ADFD as expanding private sector activities is regarded as vital for its fight against poverty because private sector growth contributes directly to economic growth which creates jobs that use labor, the main asset of the poor; and (b) through treasury function as ADFD makes investments and hedge against financial risks in the financial markets.
1. Equities participation:
This involves establishing investment companies and contributing to the capital of existing companies whose business operations ought to achieve development benefits in the countries they are established. Positive return on investments is deemed as the basic principle of attaining sustainability.
The treasury function invests ADFD available liquidity in bank deposits, bonds and financial instruments in order to achieve a positive return. , Portions of these returns are used to support the financial obligations of the Fund