AFD in South Africa
Since 1994, the AFD has been active in South Africa with one primary objective: support and follow the development of any public policies aiming to narrow the social and economic gap facing the country’s previously disadvantaged people. In recent years, this objective has been further developed to include a clear sustainability goal, both on a local and global scale. As stipulated in the 2011-2014 Framework Partnership Agreement signed between the French and South African Governments in March 2011, the AFD has provided €1 billion to South Africa between 2011 and 2014, targeting three priority sectors: infrastructural development (water, transport, energy), the promotion of sustainable and integrated urban development as well as the promotion of global public goods (energy efficiency, renewable energy development).
AFD Tools in South Africa
AFD Group involvement in South Africa has taken on various forms:
- Medium- or long-term loans to companies, public (AFD) or private (Proparco, an AFD affiliate responsible for private sector financing), without State guarantee,
- Credit Lines offered to public and private banks,
- Loan guarantees by the AFD (ARIZ plan including individual or portfolio guarantees to SMEs*) to major South African banks,
- AFD grants to fund technical assistance, feasibility studies or, exceptionally, development programmes, including grants by FGEF (the French Global Environment Facility),
- Equity or quasi-equity investments by Proparco,
- Training courses at the AFD training centre, the CEFEB**: diploma-based training, short-term or on-request seminars,
- Knowledge creation: support research initiatives such as the "African Programme on Rethinking Development Economics” (APORDE), the “Centre for Carbon Capture and Storage" or a project on urban resilience in the Gauteng city-region.
- Seminars on strategic topics such as Public Private Partnership (PPP) targeting financial, technical, lawyers managers from secondary municipalities and private sector representatives AFD Involvement in South Africa (2015).
- Annual AFD involvement in South Africa has experienced a steady increase since 1994, it has committed more than €1.7 billion (ZAR 22 billion), with more than €1.3 billion (ZAR 17 billion) between 2007 and 2014 ,ranking France 3rd largest donor after the United States and the EU Institutions. These commitments are characterized by concessional loans, the non-sovereign status of borrowers and low weight of subsidies.
*SMEs : Small and Medium-sized Enterprises
**Centre d'études financières, économiques et bancaires - Centre for financial, economic and banking studies
Social and affordable housing
Municipal sector support
African Bank (2009): Level 2 subordinated loan of ZAR100 million
Capitec (2008): ZAR150 million loan
FirstRand bank (2010): €40 million loan
IDC (2009) : provision of several credit lines
Real People (2007) : convertible loan, completed conversion.
Real People (2010) : credit lines
GCR (2009) : acquisition of capital shareholdings
Grofin Capital (2009) : $10 million share in Grofin Capital funding• €500 000 granted to the National Empowerment Fund in 2009 to finance its management training programme in partnership with the Paris Chamber of Commerce and Industry.
BOA : loan followed by converted capital
I&P Capital II (2007): $5 million share in capital
NBM (2008) : acquisition of shares and guarantee amounting to €3 million
Celtel Malawi (2007) : $3.5 million loan
Aquapesca (2005) : €8 million loan
BCI (2010) : $20 million credit line
Mozal (1998 and 2001): loans of $4.5 million, $18 million and $9.7 million
Polana (2009) : $9 million credit line
Sasol (2004) : €10 million loan
Bank One (2009) : $6 million subordinated loan
State Bank Of Mauritius (2010) : €50 million credit line
AfrAsia (2010) : acquisition of AfrAsia capital shareholdings
Mauritius Commercial Bank : major loan of $75 million. AFD share acquisition of €25 million.
Zanaco (2008 and 2009): 2 credit lines amounting to $5 million and $12.5 million respectively