The ACGF is a multi-donor trust fund. It is called "catalytic" because it identifies opportunities for scaling up what works, for providing just-in-time support to programs with high potential, and for crowding in additional resources to achieve greater impacts. The ACGF is highly competitive, and strategic in selecting the opportunities where the highest impact can be achieved.

In all cases, the ACGF financing is intended to help move an economy to the next level of performance - a push to higher export-led growth in the case of growing economies, or a boost in securing the foundations for growth in the case of post-conflict states. In some cases the ACGF directly targets hard to reach MDGs.

The fund also provides financing for regional investments, crucial to helping Africa's landlocked countries and small, fragmented economies realize their potential. This regional dimension helps to supply "public goods" that benefit multiple countries or address cross border issues.