French Development Agency (Agence Française de Développement) is a public financial institution that implements the policy defined by the French Government. It works to fight poverty and promote sustainable development.
Agence Française de Développement is a bi-lateral development finance institution established in 1941 that works on behalf of the French government. Its main focus of activities is provision of financial assistance according to France’s Overseas Development Assistance policies, including projects aimed at reducing poverty and inequalities, promoting sustainable economic growth, and preservation “Global Public Goods” of benefit to all humanity. Preservation of Global Public Goods includes the fight against climate change and pandemics; the protection of biodiversity; the promotion of social and environmental responsibility; as well as aid to countries weakened by strife, war and natural disasters.
Consequently, AFD is active in Africa, Asia, the Middle East, Latin America, the Caribbean and the French overseas territories where it finances and supports projects that improve living conditions for populations, promote economic growth and protect the planet. For Asia, this means a geographic emphasis on former French-Indochina, less on CA.
In keeping with the United Nations Sustainable Development Goals, AFD works in many sectors — energy, healthcare, biodiversity, water, digital technology, professional training, among others — to assist with transitions towards a safer, more equitable, and more sustainable world. Moreover, 50% of AFD grants and loans to foreign countries in 2016 had climate and development as co-benefits.
AFD provides the following types of financial support:
- Loans, which terms are determined depending on the type of project and its environment (impact and political, economic, social and environmental context) and the quality of the borrower (sector, rating, guarantees);
- Guarantees for financing for companies and bond issues conducted on the markets by financial institutions or certain States;
- Grants to finance actions in the social sector (health, education), initiatives for rural and urban development, and infrastructure projects.