CCFL was set up in London by General de Gaulle. Its purpose was to provide the administration of Free France with a financial institution to act as a Public Treasury, central bank and development bank for the territories which had joined its ranks.
Over the years, CCFL, which became Agence Française de Développement in 1998, has developed its missions, its partners and its fields of action in order to adapt to changes in international balances and development issues.
It was established in Paris in September.
The Law of 30 April laid the foundations for the future French cooperation system, with State subsidies and loans from CCFOM, which was also able to take part in the creation of semi-public companies in order to promote credit, social housing and electricity supply.
Its role was to support economic actors and social development initiatives in the field.
Against the backdrop of the Cold War and the wave of independence, France aimed to maintain close relations with its former colonies. CCCE’s role was refined: financing, loans, bond issues, advisory services. Priority was given to the quality and feasibility of projects.
It implemented capacity building programs and training for the beneficiaries of CCCE financing.
The Government authorized it to allocate financing on market terms and extend its geographical scope to English- and Portuguese-speaking African countries and to Haiti.
Measures were taken to allow it to develop its activities.
The Société de Promotion et de Participation pour la Coopération Economique (Proparco) was launched on 7 November 1977 with a mandate to support local, national or French entrepreneurs seeking to lead projects in developing countries, especially in Africa.
In a context of debt crisis, CCCE was authorized to grant budget support to countries in difficulty, based on the model for loans allocated in the previous year by the World Bank.
The aim was to support the financial recovery of assisted States, the adoption of major economic and financial reforms, or various sectoral reforms, such as the restructuring of agricultural sectors concerning products affected by the decline in export revenues.
In 1990, in order to avoid a deterioration of the debt crisis, at the La Baule Summit, the French President decided that CCCE would now allocate grants to the poorest African countries.
The Rio Earth Summit made sustainable development a common objective for the entire planet. It became a priority issue for CCCE.
On 30 October, CCCE changed its corporate name and its mandate was extended: finance economic and financial development in over 60 countries – in Africa, the Mediterranean, Asia, the Pacific islands – and in the French overseas territories.
FFEM was set up following the Rio Summit to support the sustainable development components of projects financed for developing countries (with no geographical restriction).
In the context of the reform of France’s cooperation policy, it was designated as the main operator for France’s development assistance, under the dual supervision of the Ministry of Foreign Affairs and Ministry of the Economy and Finance.
In order to implement the bilateral component of the debt cancellation decided at the G8 meeting in 1999, France asks eligible countries to continue to honor their obligations, but as soon as the repayment has been made, AFD, which is in charge of the implementation of the mechanism, repays them the corresponding amount in the form of grants earmarked for poverty reduction programs.
AFD was authorized to operate in China and Turkey on an experimental basis, then subsequently (2007) in Brazil, India, Indonesia and Pakistan.
In 2009, Latin America also became a fully-fledged area of operation.
The Government assigned AFD the mandate of financing the initiatives of French or international civil society organizations (CSOs), which had previously been managed by the Ministry of Foreign Affairs.
Following a conference in Addis Ababa, to highlight the new challenges for financing for development, the United Nations adopted 17 Sustainable Development Goals, the SDGs. They provide each country with a roadmap to eradicate poverty, preserve the environment and the climate, and support good governance and prosperity.
In December, the Paris Climate Agreement was signed.
France revived its development policy and increased its development assistance budget: an additional EUR 4bn by 2020, including EUR 2bn for the climate.
AFD celebrated its 75th anniversary.
The closer ties between Caisse des Dépôts et Consignations (CDC) mark a new phase in AFD’s life.
The Strategic Alliance Charter signed on 6 December 2016 defines, for a period of five years, the cooperation methods between AFD and CDC. It provides France with a powerful and coherent financing mechanism for sustainable development both at home and abroad.