[NA]

From 29 May to 13 June, the AFD will be organising an “Ideas for Development” cycle of five interdisciplinary conferences on a range of topic areas. These events will provide a framework for discussions on development issues with numerous experts with a professional or personal interest in this field. They are intended as a new forum for debates and meetings between researchers, students, professionals from a wide range of fields, and the general public.

The first three conferences, described below, will focus on Africa’s economy and its performance, opportunities, stumbling blocks and prospects.

2nd conference : "Macro-economics and politics in Africa"

31 May, in partnership with Politique africaine and Afrique contemporaine magazines

Although macro-economics is an area usually addressed as a theoretical corpus developed by economists and technical public policy experts, it can also be seen as above all an expression of politics. This meeting aims to offer a different perspective on macro-economics, as the theatre of social struggles and conflicts between groups that offers material to gain a better understanding of the logic of the State and the mechanisms of power.  A “bottom-up” analysis of the technical aspects of macro-economics can shed light on the emergence of new players, new instruments and new positions and relationships of power – in other words, provide new ways of approaching the realities of African societies.

Speakers
Béatrice Hibou, CNRS, Sciences Po / CERI, FASOPO
Boris Samuel, SciencesPo CERI, FASOPO

To be followed by a debate with the audience. 

Conference on 31 May 2011, 10 am to 12.30 pm at the AFD, 5 rue Roland Barthes, Paris 12°.
Admission free subject to seating capacity and prior registration

Find out more and register for the conference

Increasing threat to food security for Africans

The 2008 food riots revealed the number of challenges facing Africa in terms of food security:

• the uncontrolled increase in urban populations, which rely on food imports subject to price volatility in agricultural raw materials;
• the chronic dependence on emergency food aid, particularly in destabilized regions such as the Sahel zone;
• the practice of land grabbing by speculative investment funds to the detriment of the interests of village producers;
• the lack of political will to establish regional strategies based on farmers’ production sectors;
• private agricultural companies and cooperatives’ lack of own resources to increase their production and modernize industries.

African Agriculture Fund: a first

The international community has mobilized to address these issues via various initiatives. For the first time, European partners (AFD, European Union, Spanish Agency for International Cooperation and Italian cooperation), African partners (ADB, BOAD, EBID, DBSA and the AGRA Foundation) and UN agencies (IFAD and UNIDO) have pooled their resources and expertise within a single investment fund (African Agriculture Fund or AAF) in order promote agricultural investments in Africa.

A palm plantation in Ghana, © AFD Agency in Ghana

Anti-money laundering and sound land management

This pan-African fund was quoted in the Final Declaration of the G20 Agriculture Meeting in June 2011. It is expected to total over $200m by July 2012 and operates throughout the agricultural value chain (production, processing and distribution), with priority given to the primary sector (cereals, livestock, aquaculture, fruit production…).

The fund’s procedures cover compliance with strict social and environmental standards, systematic due diligence on anti-money laundering and corruption and the application of a code of sound land management.

Two AAF projects already underway

AAF has already invested in two projects: the first aims to refurbish a palm oil processing plant in Sierra Leone via a $10m investment alongside financing from Finnfund . This project is part of the international community’s post conflict initiative. It involves over 8,000 independent planters and will increase production destined for the domestic market.

The fund’s second investment, worth $20m, will extend an egg production farm in Zambia and develop the different sector stakeholders (from soya production for poultry feed to distribution points, including storage improvement).

The next investments are expected to be made in French-Speaking West Africa ( Côte d’Ivoire ) and in a wide range of sectors (mineral water, sugar, crop protection…).

The fund has two instruments which more specifically target small producers or entrepreneurs: a $30m subsidiary fund earmarked for agricultural SMEs and a $15m technical assistance facility to subsidize the professional integration of small producers, capacity building and the development of services for SMEs.

During the signing, Ibrahim Mayaki, Chief Executive Officer of the NEPAD Planning and Coordinating Agency (NPCA) and former Prime Minister of Niger, and Yves Boudot, Director of AFD’s Sub-Saharan Africa Department, had the opportunity to discuss – in addition to ICT development in Africa – the headway made by the Programme for Infrastructure Development in Africa (PIDA), an initiative led by the African Union Commission, NEPAD and African Development Bank.

AFD’s long-standing support to NEPAD’s New Information Technologies initiatives

Since 2003, AFD has been supporting NEPAD’s activities in the telecoms sector (e-Africa Program) via an earmarked grant and the joint AFD-DBSA Project Preparation and Study Fund. These funds have cofinanced preparatory services for NEPAD’s ICT operations and have provided a residential technical assistant (on assignment since July 2009) to support the project for the UMOJANET (“umoja” means “union” in Swahili) broadband transmission virtual network.

This new financing has been delegated from the European Infrastructure Fund (EU-ITF) and follows on from an €850,000 AFD grant (allocated in 2006) to support NEPAD’s initiative to develop a continent-wide broadband transmission virtual network.

Umojanet is extending Uhurunet

The grant that has been allocated will finance the study program that results from the technical assistant’s research to finish off the design of the concept and of the UMOJANET network. The aim is to extend it to the 29 countries in North, West and Central Africa. This will complete both coverage on the continent and the UHURUNET project for Southern Africa.

This project aims to offer African operators a pan-African network of fiber-optic transmission channels. The resulting interconnection offer is required to meet criteria for comprehensiveness, guaranteed quality, open access, non-discrimination and lowest possible cost. The bid invitations will be published in February 2012.
AFD’s approach in supporting NEPAD’s activities is based on its research on promoting regional integration via the construction of major communication networks as a complement to the private sector. This strategy is in line with those adopted by other donors (World Bank, ADB, EIB, KfW, DBSA…). It previously prompted AFD to provide USD9.5m of cofinancing alongside other donors in 2007 for the Eastern African EASSy submarine cable project.

The signing of this additional financing for the implementation of the UMOJANET project should allow NPCA to present an effective implementation plan for a fiber-optic broadband network in West, Central and North Africa over the next 12 months. This will complete both coverage on the continent and the UHURUNET project for Southern Africa.

Yves Boudot spent 27 years of his career in about ten African countries. He was appointed Director of AFD’s Sub-Saharan Africa Department a few weeks ago.

Is it right to say that Africa is the priority continent for AFD?

Africa is the main priority for France’s cooperation policy.* AFD is in charge of implementing this vision. This priority given to financing development in Sub-Saharan Africa aims to provide solutions to the major issues and challenges posed by the emergence of the continent. This priority is also the result of the very history of France’s official development assistance and of our Institution. It is in Sub-Saharan Africa that AFD’s operational, financial and emotional roots are implanted. This is what makes AFD stand out in the landscape of donors and also constitutes its main area of expertise and its core value. Sub-Saharan Africa concentrates nearly 40% of AFD’s total activity and 60% of the State budgetary effort.

How should we view the situation in Africa today?

We should try to avoid the tendency we have to generalize as soon as we talk about this continent. For far too long now, generalities about the situation in Africa and its future have made us vacillate unequivocally between a pessimistic or fatalistic vision and a blind optimism. Sub-Saharan Africa is diverse and complex with widely varying situations. However, one thing that is sure today is that Sub-Saharan Africa is at the forefront of the global issues and challenges both today and for the coming decades. This is perhaps how the situation actually stands in Africa today. The unprecedented population dynamics, the strong and resilient economic growth in recent years, the natural resources potential that we are constantly talking about, but which has so far been developed very little, and the continued progress towards peace and democracy have definitely made us change the way we look at the continent. South Africa is a striking example. Who could have foreseen, back in 1990 when Nelson Mandela came out of prison, that twenty years later this country would be the economic power that it is on the way to becoming?

What are the main challenges that Sub-Saharan African countries need to face?

There are major challenges. Africa will need to feed almost a billion more people by 2050. Its population growth rate is estimated at some 15 million more people a year. Its agriculture will need to feed cities that will continue to grow at a fast pace and also to provide rural areas with a livelihood. By 2050, two billion Africans will need access to water, energy, education or health, whereas today’s production and distribution capacities cannot meet demand. Finally, economic growth in Africa, which is well above the current growth of our economies, will first and foremost need to be synonymous with large-scale job creation for the continent’s youth and with tax resources for States. The emergence of a formal private sector is one of the major challenges for Sub-Saharan Africa.

What are AFD’s main strategic directions in Sub-Saharan Africa?

Once again, they depend on the economic and social situation of the countries we support. They consequently first depend on the demand and needs of the beneficiaries of our financing, but also on States’ capacity to borrow in order to finance their investments. AFD’s activity in Sub-Saharan Africa is today guided by three main areas defined by the French Government: financing major infrastructure, developing more productive agriculture and supporting more inclusive growth. The first therefore involves supporting the development of major infrastructure and providing communities in cities and rural areas with access to essential services. They concern access to energy, transport, water, irrigation, education and health. A recent World Bank study highlighted the lack of this infrastructure, the high cost of access to it and the substantial additional amounts required to remedy the current situation over the next ten years. Energy and transport are objectively speaking the two main priorities. These two sectors require heavy investments. They must be implemented by coordinating the efforts of donors, private partners and States. For example, there is considerable hydropower potential and projects, which are necessarily regional, are implemented over the long term. We must now focus our efforts on this sector. Since the end of the 1970s, rail transport has been abandoned for roads and yet on the main trade corridors and to transport raw materials from the mining industry it is the means of transport that best meets needs. The second priority area for the coming years is to develop subsistence farming and agri-food industries. The sector accounts for 13% of GDP in Sub-Saharan Africa and concerns almost 70% of the working population. It helps create value, stabilize communities in rural areas and combat desertification. Africa’s agriculture needs to be more productive in order to guarantee food security for cities and rural areas and create export surplus. These challenges are core to the way movements take place between Africa’s growing cities and rural areas. Finally, everyone is aware that for nearly ten years now, the continent’s economic growth rates have been well above those of our own economies. This steady growth is largely driven by the upward trend for commodity prices, notably mining and oil products. It is, moreover, often unequal from one country to another. It is essential to promote the development of more inclusive growth led by a formal private sector in high employment generating sectors. AFD is consequently pursuing its efforts to promote the development of a banking and financial system oriented towards the development of this private sector.

Do we have geographical priorities?

In terms of the distribution of the French State’s budgetary effort, the 14 priority countries for French cooperation** are a strong focus for AFD’s activity. However, AFD now works in all Sub-Saharan African countries where it adapts its action and tailors its tools to the needs expressed and to our ability to meet them. The real priority would be to come up with a different geographical approach to Sub-Saharan Africa. We must first look at things from a regional perspective, particularly for major infrastructure projects, while pursuing national actions in other sectors. The scale of the challenges that we have just mentioned and the critical size of the economic blocs are such that a regional approach is inevitably essential. This is true when it comes to financing major energy or transport infrastructure projects, but also for the development of coherent and integrated economic areas that create dynamism and emulation, in synergy with the regional Unions that are gradually emerging.

* This priority is set out in the French Ministry of Foreign and European Affairs’ Framework Document for Cooperation for 2011.

** The 14 priority countries in Sub-Saharan Africa: Benin, Burkina Faso, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Ghana, Guinea Conakry, Madagascar, Mali, Mauritania, Niger, Senegal and Togo.

Décryptage avec ce dossier spécial « Sécurité alimentaire » au lendemain du "G20 agricole" qui a réuni pour la première fois, à Paris, les ministres de l'agriculture des pays du G20.

►  L'éradication de la faim n'est pas une utopie. Des solutions existent. Abolir la faim dans le monde « maintenant », tribune du Pr Ismaïl Serageldin et Dov Zerah

► 3 questions à Jean-Luc François, directeur de la division Développement agricole et rural

► Focus sur le Ghana, un pays pour qui l'agriculture est au coeur des priorités

 "Moderniser les process agricoles mais également notre façon de penser le monde"

3 questions à Jean-Luc François

Jean-Luc François est responsable de la division Développement agricole et rural à l'AFD

Qu’entend par sécurité alimentaire ?

La sécurité alimentaire signifie que tous mangent à leur faim. Mais il ne suffit pas de nourrir les gens pour qu’ils aient faim. Il faut augmenter leurs revenus.

Quels sont, d’après vous, les causes de la très grande vulnérabilité alimentaire dans laquelle vivent les pays du Sud aujourd’hui ?

Hormis des causes structurelles et locales, nous sortons d’une décennie où la doxa dans le monde des économistes du développement était : libéralisation et nouvelles technologies. Cependant – cause ou conséquence ? – la vulnérabilité aux phénomènes climatiques critiques, l’accroissement de la demande des pays émergents, au premier rang desquels la Chine, et le passage de leurs populations à des régimes carnés – beaucoup plus consommateurs de ressources naturelles – ont provoqué une réduction drastique des régions excédentaires et donc une flambée des prix. Les pays du Sud, de plus en plus dépendants de leurs importations de denrées alimentaires et où la population rurale est extrêmement pauvre, ont été particulièrement touchés par cette flambée des prix.

Aujourd’hui, nous sommes toujours dans cette grande vulnérabilité alimentaire.

Quelle est la stratégie prônée par la France et l’AFD ?

Pour répondre au défi de la faim, notre axe prioritaire est de moderniser l’agriculture des pays du Sud. Moderniser les process agricoles certes mais également notre façon de penser le monde et notre environnement. Il convient de conjuguer réponse globale et solutions locales.

La mise en place d’instances d’échanges, de régulation régionales, voire mondiale, en matière de politique agricole et de marchés des matières agricoles sont devenues une nécessité pour la majorité des acteurs du secteur.

En Afrique, par exemple, l’AFD travaille avec la Communauté économique des États de l’Afrique de l’Ouest (CEDEAO) à la mise en place d’une gestion régionale des risques pour répondre aux désordres du marché.

Quels sont les axes d’intervention prioritaires en matière de développement rural et agricole ?

Nous intervenons en matière de structuration des filières, d’innovation, d’assurance et de crédit agricole ainsi que dans le domaine de la formation.

Des filières agricoles plus fortes sont également un moyen de lutter contre la vulnérabilité des populations. De la production à l’exportation en passant par l’accompagnement d’opérateurs intermédiaires, l’AFD accompagne certains de nos pays partenaires dans la structuration de ces filières.

Nous avons mis au point une palette d’outils financiers accessibles aux acteurs agricoles, en mixant prêts et dons, en développant des systèmes de garanties (fonds ARIZ par exemple).

Enfin, nous participons également à la recherche que ce soit sur les impacts de la libéralisation sur les agricultures du sud, sur la volatilité des prix et des moyens de la combattre, sur l’appropriation des terres, sur les filières vivrières, etc.

L’AFD est reconnu par ses partenaires comme un bailleur de fonds qui a une vision robuste de l’agriculture. Cependant, notre activité dans un pays, dans un secteur ne dépend pas que de nous. En effet, l’AFD répond à des demandes de ses partenaires. A nous de les convaincre.

Focus sur un pays, le Ghana, pour qui l'agriculture est au coeur des priorités

Interview de Bruno Leclerc, directeur de l'agence AFD d'Accra (durée 7 mn)

Abolir la faim dans le monde «maintenant»

Tribune du Professseur Ismail Serageldin et Dov Zerah, parue dans les Echos le 22 juin.

"L'éradication de la faim n'est pas une utopie. Des solutions existent. A la veille du G20 agricole, c'est plus que jamais une cause d'intérêt universel. L'agriculture africaine doit redevenir une priorité de l'aide internationale. "

Lire la suite de la tribune

►Download the Annual Report 2010 in French (PDF)

2010: a new year of growth to support development

With €832 million of budget resources allocated by the State, AFD provided €6.8 billion of project financing in 2010, i.e. an 11% rise on 2009. Its activity accounted for 28% of France’s official development assistance. AFD also paid back €104 million of dividends to the State.

Africa remains the priority with €2.1 billion of financing in 2010.

Two-thirds of the financing break down between infrastructure, urban development, productive sectors and agriculture.

In 2010, AFD’s financing will contribute to:

• Improving drinking water supply systems for 33 million people
• Getting 13.4 million children into primary school
• Upgrading or building transport hubs that will be used by 85.8 million passengers a year
• Supporting energy efficiency by saving 5 million tons of CO2 a year
• Providing access to electrification for 3 million people
• Allocating microfinance loans that will benefit just over 700 000 people
• Supporting agricultural or irrigation projects that will benefit 1.4 million people

2011: consolidation of economic model

Dov ZERAH, Chief Executive Officer of AFD: “AFD has experienced a veritable revolution over the past few years. It has become a key player in development with an activity that has tripled in five years. Today, a new phase is beginning with the consolidation of our model.”

In the coming years, AFD will be focusing its activity on three priority areas:

• Sub-Saharan Africa:  60% of resources allocated to AFD by the State will be earmarked for this region, particularly for the sectors of agriculture and agro-industries, infrastructure, education and health.
• The Mediterranean: AFD will be supporting the recent developments in the region by scaling up its operations in Mediterranean Basin countries, particularly in the productive and vocational training sectors.
• Emerging countries: AFD will be supporting these countries via loans with a low level of concessionality in order to encourage them to set out on a growth path that respects the environment more and is more inclusive.

Consolidating the model requires stabilizing AFD’s level of activity, which is expected to reach €8 billion by 2013. AFD set up a Risk Department in 2011 in order to improve risk management. It has also reinforced its human capital with 125 recruitments in 2010.

Dov ZERAH: “Beyond financing, it is our expertise that our partners are seeking. AFD will also be continuing to actively provide input to international debates through its knowledge production. We will, at the same time, be forging an increasing number of partnerships with other development players such as NGOs, local authorities, private foundations, or again multilateral banks. They help increase the outreach and effectiveness of our actions. In a globalized world, the only winning strategies are cooperation strategies.”

In 2011, AFD will be celebrating the 70th anniversary of its creation in 1941 by General de Gaulle. AFD will be marking the occasion by organizing events to meet the French public in order to raise their awareness of North-South issues and allow them to learn more about development results. A travelling open-air exhibition called “Objectif Développement”, designed in partnership with Magnum Photos, will be launched in Bordeaux on 21 May 2011. It will be travelling to all the major cities in France throughout the year.

 
Agence Française de Développement (AFD) is a public development finance institution that has been working to fight poverty and support economic growth in developing countries and the French Overseas Communities for 70 years. It implements the development policy defined by the French Government.
With agencies in over 50 countries, AFD finances and supports projects that improve people’s living conditions, promote economic growth and protect the planet: getting children into school, support for farmers and small businesses, water supply, tropical forest preservation, fight against climate change…