The French Development Agency (AFD) implements the policy defined by the French Government. It works to combat poverty and promote sustainable development.
It achieves this by financing and supporting projects that improve living conditions for populations, promote economic growth and protect the planet.
In 2014, AFD allocated EUR 8.1bn to finance projects, including EUR 6.35bn in developing countries and EUR 1.55bn for overseas France.
In 2014, AFD allocated some EUR 767m to education and health and invested over EUR 633m in water and sanitation programs. Projects related to territorial development benefited from over EUR 4bn, i.e. almost half AFD's commitments, with projects in the energy, transport and telecommunications sectors in rural and urban areas. For 2014, the breakdown for commitments by sector is as follows:
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22% in the productive sector,
27% in infrastructure and urban development,
21% in energy,
2% in biodiversity and natural resources,
8% in water and sanitation,
9% in education and health,
2% in agriculture and food security.
7% is divided among various sectors.
Development and climate change
AFD also operates in emerging
countries for issues related to the protection of the environment and energy management.
In a crosscutting manner to these sectors, in 2014, AFD earmarked 53% of its international activity for the fight against climate change, i.e. EUR 2.8bn, which financed development projects that also have a positive impact on the climate.
AFD, via the projects it finances and several initiatives, is gearing up for the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC). For example, with the GoodPlanet Foundation, it is putting on a photo exhibition "60 SOLUTIONS Against Climate Change", which presents concrete, innovative and effective initiatives in four sectors that combine climate change and economic development.,
Geographical areas of operation
AFD has been working for over sixty years to promote development in Southern countries and the French overseas territories. It is active in the field in over 90 countries, where it finances and supports projects that improve living conditions for populations, promote economic growth and protect the planet: getting children into school, assisting farmers, financing small businesses, water supply, tropical forest conservation, combating climate change... AFD's strategy is guided by sustainable development. Its operations are in line with the Millennium Development Goals, at the intersection of the objectives of economic growth, poverty reduction and environmental conservation.
A wide range of financial and technical instruments meet the different needs of countries: grants, guarantees, equity investments, subsidized loans, loans on market terms and technical assistance.
It develops financial and intellectual partnerships with other donors and contributes, in conjunction with its supervisory authorities, to public policymaking and to France's influence in the development sphere.
Latin America and Caribbean
In Latin America and the Caribbean, AFD promotes sustainable and equitable development through green and inclusive growth. There are a number of projects to fight climate change, for urban development, as well as projects to promote social convergence.
Sub-Saharan Africa
Sub-Saharan Africa is the priority region for France's public development policy. In 2014, AFD invested EUR 2.95bn in the region, i.e. 36.5% of its total financing. Among the many projects, a number focus on promoting access to essential services, the growth of sustainable cities, the development of infrastructure, family farming and job-creating enterprises, as well as on the preservation of natural resources.
Asia
In Asia, AFD works to promote environmental and regional balances, with a focus on projects that limit the environmental footprint of cities or contribute to regional convergence.
Mediterranean and Middle East
AFD supports the region's political and economic transition, with a focus on promoting Euro-Mediterranean integration, territorial development and job creation. The AFD also funds restoration works, such as that of the Saint Hilarion monastery which the AFD funded in order to have the Byzantine-era site inscribed in the UNESCO World Heritage Sites list.
Overseas France
Since 1946, AFD has had a public service mandate to provide a reference public service provision for credit and social housing. In 2014, overseas France accounted for 19% of AFD's activity, i.e. EUR 1.55bn. AFD conducts several types of action in overseas France. Its activities are based on the following areas: financing and assisting public policies, advisory services for local authorities, promoting business competitiveness and job creation, supporting regional integration and action for sustainable development. This involves financing and supporting projects that improve living conditions for populations and promote economic growth, while preserving the environment. Thanks to its financing, its expertise and its knowledge production, it assists the local public sector, finances companies, housing and urban development, and supports regional cooperation.
It fulfills this mandate through nine agencies throughout the overseas territories: French Guiana, French Polynesia, Guadeloupe, Martinique, Mayotte, New Caledonia, Réunion, Saint Pierre and Miquelon, Wallis and Futuna.
In the overseas departments (DOM), in Saint Martin, Saint Barthélemy and Saint Pierre and Miquelon, AFD also represents the public investment bank Bpifrance, which finances the creation, innovation, investments and international development of French SMEs.
AFD is the reference shareholder in seven social housing companies (Simar in Martinique, Sic in New Caledonia, Sig in Guadeloupe, SIDR in Réunion, Siguy and Simko in French Guiana and Sim in Mayotte). These property companies promote, manage and build social housing.
Finally, it provides part of the staff of the note-issuing banks, Institut d'Emission d'Outre-mer and Institut d'Emission des Départements d'Outre-mer.
Knowledge production
Knowledge production is a major activity for AFD and aims to contribute to the definition of the public policies of France and its partners. It has become an essential complement to the financial and technical tools. AFD's knowledge production started to play an important role in the 2000s. This drive for knowledge production is based on the organization of seminars and conferences, training given by CEFEB, a studies and research program, and the establishment of partnerships with academic and research institutes.
AFD also offers a number of publications on developing countries and the French overseas territories:
Afrique Contemporaine, a sociological, political and economic review on Africa;
The Working Papers series, which reports on ongoing research;
The ExPost publications;
The Focales series, which describes practical case studies (projects, partnerships, experiments...) and puts them into perspective;
The A Savoir series, which gathers either literature reviews or existing knowledge on issues that present an operational interest;
The Recherches series, which presents research actions initiated or led by AFD;
The Conférences et Séminaires series, which provides a wide audience of readers with the main outcomes and lessons learned from the research conducted by AFD and its partner development assistance actors;
The MacroDev series, which provides analyses focused on a country, region, or on macroeconomic issues related to development processes;
Publications co-edited with the World Bank;
Other co-publications;
Regards sur la Terre, the annual sustainable development report coordinated by AFD and IDDRI;
The Ideas for Development blog, a forum for exchanges coordinated by AFD, open to development actors and the public interested in development.
All this contributes to improving knowledge of the Official Development Assistance policy: "its rationale, its effectiveness, its interactions with the other public policies, its role in the management of globalization" AFD's aim is to become an internationally recognized research center, both in terms of sustainable development and global public goods, and the design of innovative financing instruments.
