AFD in Ghana

AFD began its operations in Ghana in 1985, opening its first representation in an English speaking country. Since 1986, AFD has concentrated its operations on major economic infrastructure development projects in the country, mainly in the telecommunications, transport and energy sectors. Photo © Paul Williams

News

2016, a record year for AFD

11/05/2017

With a record year in 2016 marked by EUR 9.4bn of commitments, AFD is taking action in new fields, particularly in continental Africa

Rémy Rioux, Chief Executive Officer of AFD, presented today AFD’s results for 2016, from the perspective of its strategy for 2020.

At the request of the French President in 2015, AFD has significantly increased the volume of its financing, in line with the international community’s objectives (SDGs, Paris Climate Agreement), formed its strategic alliance with Caisse des Dépôts et Consignations, and extended its scope of operations. 
 

 

 

Rémy Rioux, its Chief Executive Officer, explains AFD’s strategy: “2016, the year of its 75th anniversary, was marked by the increase in AFD’s commitments, its strategic alliance with Caisse des Dépôts et Consignations, and the strengthening of its partnerships with civil society, territorial authorities, the private sector, bilateral and multilateral development banks, European institutions and the major foundations. With EUR 9.4bn of commitments, AFD has set out on an ambitious growth path to support the major transitions in developing countries and the French overseas territories. With its new strategy, AFD will be playing a leading role in supporting the emergence of a common world.”

In 2015, the French President set for AFD the objective of increasing its activity by +60% by 2020 to some EUR 13bn of annual commitments. It set out on this growth path in 2016.

EUR 9.4bn of projects were financed by AFD: i.e. +13% in 1 year.

Africa, all Africa, is AFD’s priority, with some EUR 4bn of commitments in 2016, a +25% increase.

  • Between 2010 and 2016, EUR 22bn were committed in Africa.
  • In January 2017, at the Bamako Summit, the French President made an even more ambitious commitment for AFD: EUR 23bn will be committed for Africa over the next five years.
  • AFD has supported renewable energy development by committing EUR 600m in Africa in 2016. It plans to devote EUR 3bn to the sector by 2020.

AFD is operating in new countries and new sectors: 

  • Argentina, Cuba, the Balkans: AFD will be extending its geographical area of operations towherever the support of a committed and solidarity-focused development bank is useful.
  •  AFD’s new strategy opens up areas of action for the future, in sectors in which AFD did not previously operate or had limited activity: governance, cultural industries, higher education, innovation and digital technology, social business, the external action of local authorities, education in development and international solidarity.

AFD and CDC: A strategic alliance active in the field

The strategic alliance between the two institutions, signed on 6 December 2016, is being operationalized in the field. At international level, it is leading to common tools, such as the EUR 600m infrastructure investment fund, whose creation was recently announced by the two Chief Executive Officers in Burkina Faso. In France, it is bringing about a closer partnership with regional and local authorities and all development actors in territories.

 


AFD’s action in 2016

Action on the five continents:

  • 50% of AFD’s financial commitments in foreign countries (some EUR 4bn in 2016, i.e. +25% in one year) are devoted to Africa, all Africa, a priority for AFD’s action, where 84% of the budget resources allocated by the State are focused. In its new strategy, AFD considers Africa as a whole: from Morocco to South Africa, from Senegal to Djibouti, with its regional dynamics, without separating the North of the Sahara from the South.
  • 20% in Asia and the Pacific to finance low-carbon projects (EUR 1.3bn in 2016).
  • 20% in Latin America and the Caribbean, with a focus on sustainable urban development (EUR 1.1bn in 2016).
  • 10% in the Middle East to finance inclusive and resilient growth (EUR 741m in 2016).
  • In 2016, AFD also earmarked EUR 1.6bn of financing for the French overseas authorities.

The markers of AFD’s action: 6 x 50%
AFD, France’s development bank, which is solidarity-focused and committed to working for populations in the South and the French overseas territories, bases its action on 6 strong markers:

  • 50% of its commitments abroad are in Africa
  • 50% of its activity concerns French-speaking countries and territories
  • 50% of its projects have positive impacts on the climate
  • 50% of its projects contribute to reducing gender inequalities
  • 50% of its beneficiaries are non-State actors (State-owned or private companies in Southern countries, local authorities, public institutions, NGOs, banks) 
  • 50% of its projects are cofinanced with other donors

AFD finances sustainable growth paths that contribute to the five major transitions which both developing and developed countries are undergoing: demographic and social transitions, territorial and ecological transition, energy transition, digital and technological transition, political and citizen-based transition.

Solutions which bring about positive impacts for populations

In 2016, AFD financed 657 development projects, which have, for example:

  • improved urban transport in New Caledonia;
  • managed tensions between host and refugee populations in Lebanon and Jordan;
  • built Burkina Faso’s energy autonomy;

Projects with measurable concrete impacts every year. Over the past 5 years, on average: 

  • 730,000 family farms supported;
  • 665 MW of renewable energies installed;
  • improved access to water and sanitation for 1.2 million people;
  • 54,000 SMEs supported;
  • 832,000 children sent to school.

 ► Find out more about the results for 2016



Private sector at the bedside of health

07/04/2017

Access to healthcare – and to high-quality care – is a challenge for a large section of the population in Sub-Saharan Africa. It is often small private structures which meet needs in rural areas and for the poorest. The Medical Credit Fund foundation works alongside them and demonstrates that in the health sector, it is possible to effectively combine a social purpose with entrepreneurial projects.

Sub-Saharan Africa has 16% of the world’s population, but only accounts for 2% of global health expenditure. Yet over the years, population growth, the rise in chronic diseases, but also socioeconomic progress, have created an increasingly pressing demand for healthcare. But the African subcontinent suffers from a clear lack of investment.

In this extremely tense context, some 50% of total healthcare delivery is already provided by the private sector, which plays a key role at all levels, from healthcare provision to retail trade. It even has a predominant place in certain countries, such as Uganda or Ghana, with over 60% of total healthcare provision. “Contrary to common belief, the private sector is sometimes the only healthcare provider in rural areas and deprived urban areas”, explains Aurore Lambert, health project manager at AFD. “It is a far cry from provision just for rich people!”.
 

These structures are often small or medium-sized, yet they face two major problems which are intrinsically linked: the poor quality of healthcare and the difficulty of gaining access to financing to allow investments to address this. In reality, the banking sector generally considers that their activities are risky.
 

 

Some 600 health centers financed

Medical Credit Fund (MCF) is a foundation whose purpose is precisely to facilitate financing for these structures, while helping to improve their quality standards. The foundation is based in the Netherlands and is, for the time being, the only one of its kind. Since it was set up 5 years ago, MCF has financed 586 health centers, mainly in Kenya and Ghana, but also in Nigeria and Tanzania.

The average loan amount stands at EUR 20,000 and loans are mainly used to renovate buildings or purchase equipment. For example, a few months ago, South B Hospital, a small hospital structure with 45 beds located in a popular neighborhood of Nairobi, benefited from a loan to finance the creation of intensive care, nephrology and hemodialysis units. The hospital teams will follow a healthcare quality improvement program throughout the duration of the loan.

 

Photo Dorte Hopmans © Diorte

 

MCF is a not-for-profit foundation, but it is also a private actor: MCF does not allocate grants, but aims to grow in order to achieve financial equilibrium. Equilibrium ensures that the project is autonomous and gains in strength. “It is a social business”, explains Selvan Pajaniradja, who develops this sector of operations at AFD, “The aim is indeed to build high-quality health service provision for all at an affordable price. MCF consequently works for development, but at the same time generates the revenue which is essential for the sustainability of the project!”.

 

French-speaking Africa for tomorrow?

The originality of MCF can be seen in its inclusive and partnership-based method. The foundation works with local financial institutions, providing them with its knowledge of the health sector and assisting them in the appraisal and follow-up of files. “The aim is to work with local partners and help them develop their range of loans for the sector”, adds Aurore Lambert, “It involves showing that financing health services in Africa can be a profitable activity.” 

As the MCF project fits in with its core objectives for health and social business, in December 2016, AFD decided to take part in a funding round, via a EUR 3m concessional loan and EUR 1m grant from its social business facility. It has thereby joined up with the International Finance Corporation (IFC) and Calvert Foundation . AFD’s long-term objective is to help MCF establish itself in French-speaking Africa, in particular in Côte d’Ivoire, Cameroon and Senegal, where there are also considerable needs. “Given its expertise in the health and financial sectors in a number of countries”, points out Arjan Poels, Chief Executive Officer of MCF, “AFD is a key partner in supporting our project to improve the financing capacity of health structures and, more generally, healthcare quality in Africa.”
 



The Agence Française de Développement and Bpifrance have together launched a digital innovation competition open to African and French start-ups working for development in Africa

11/10/2016

For the first time, the Agence Française de Développement, which for almost 75 years has been funding development projects in Africa, and Bpifrance, have joined forces to launch the "Digital Africa Start-up Challenge", an innovation competition to promote the development of digital start-ups in Africa. African and French start-ups have until 15 November 2016 to submit their applications in the fintech, health, environment-energy and agricultural sectors.

Applications may be submitted until 15 November 2016 via the Platform :  http://digitalafrica.afd.fr  
#DigitalAfrica

   

What motivated this challenge?

Africa is more and more connected, particularly due to the rapid adoption of mobile telephony, and has become a continent of digital innovation. The development of mobile payments and the increasing adoption of smart phones and broadband Internet are among the many factors that now enable digital entrepreneurs to propose new products and services in all economic sectors. The dynamism of digital ecosystems has led to an increase in the number of technological hubs, co-working units, laboratories and incubators, of which there are now more than 300 on the continent.

Given this context, the AFD and Bpifrance wanted to pool their experience in the financing of digital innovation and development. The "Startup Challenge Digital Africa" should encourage and support new players in the digital economy, accelerate the sharing of know-how and facilitate the emergence of new solutions for development.
 

Four sectors have been chosen for their dynamism and potential impact for development of the continent:

  • fintech
  • health
  • environment/energy
  • agriculture

What are the rewards for the winners?

A jury will choose two start-up winners, one African and one French, in each of the four sectors (i.e. eight start-ups).
Another two start-ups, one African and one French will be selected by online voters.
In all, 10 start-ups will thus be rewarded.
They will be invited to come and present their project and meet partners during the 27th Africa-France Summit, to be held at Bamako on 13 and 14 January 2017.

How to apply?

African and French entrepreneurs should submit the key elements of their entrepreneurial project online at http://digitalafrica.afd.fr before 15 November 2016, and must indicate in which of the four categories they wish to compete, namely fintech, health, environment/energy or agriculture.


A qualified jury and two renowned sponsors

The jury will be made up of qualified African and French personalities and representatives of the AFD and Bpifrance. The Digital Africa Start-up Challenge is sponsored by two influential entrepreneurs in the world of technology and innovation: 14 January 2017.

Karim Sy 
An entrepreneur based in Dakar
Founder of the Jokkolabs network (the 1st African collaborative working space)

Gilles Babinet 
A French entrepreneur, Founder of Africa4Tech
First chairman of the French Digital Council France’s “Digital Champion” and one of the European Commission’s Digital Ambassadors

The AFD and Bpifrance


Rémy Rioux, Director General of the AFD claims: "Digital technology may be an incredible accelerator of sustainable development in Africa, on condition that each entrepreneur is able to benefit from the innovation springboard. The Agence Française de Développement wants to accompany this wave of transition, which offers new trajectories for growth, by supporting southern entrepreneurs whose projects are promising for the continent and by promoting interactions between northern and southern entrepreneurs. This is why the AFD and Bpifrance decided to work together to launch this competition."

Nicolas Dufourcq, Director General of Bpifrance, declares: "The technological leaps occurring in Africa and the emergence of a young middle-class have created exceptional development opportunities for African and French companies. We are proud to participate in this competition, which is in line with our actions for promoting the internationalisation of companies and cooperation with the African continent."

About Bpifrance


Bpifrance , a subsidiary of the Caisse des Dépôts and the French state, a trusted partner of French entrepreneurs, supports companies from start-up to flotation on the stock exchange by granting loans, acting as guarantor and by investing. Bpifrance also provides support services that reinforce innovation, external growth and exports, in partnership with Business France and Coface.

Bpifrance offers companies a complete range of financing for every key stage of their development, and offers that are adapted to regional specificities. With 47 regional branches (90% of decisions are taken in the regions), Bpifrance is an economic competitiveness tool at the service of entrepreneurs.

Bpifrance acts to implement French government policy and Regional policies in order to achieve three objectives:

  • reinforce the growth of companies ; 
  • prepare their competitiveness for the future ;
  • contribute to the development of an ecosystem that favours entrepreneurship.

In Bpifrance, companies have a powerful and effective partner, who follows their development closely in order to meet all of their needs for financing, innovation and investment.

Follow us on Twitter: @bpifrance



Reducing traffic jams and flooding through the Kumasi Extension Project

30/06/2016

AFD has provided a concessional loan of 37.5 million Euros to the Government of Ghana to complete the upgrading of major road and drainage infrastructures in Kumasi. The Kumasi Roads and Drainage Extension Project will finalize the works undertaken under two previous projects financed by AFD, that is the Kumasi By-pass Project (construction of the Oforikrom-Asokwa by-pass and Lake Road) and the Second Urban Environmental and Sanitation Project (UESP II). 
 

Reducing traffic jams and flooding

The road component of the project is expected to reduce traffic jams, save time for the road users thereby contributing to the overall improvement in the development of the region.  The storm drain component of the project will tie in the 31-meter width channelized Aboabo Storm drain to the Lake Road culvert/bridge and extend the lined drain further downstream by 2 kilometres.  All these are expected to reduce flooding with the resultant effect of increasing productivity and economic activity.
 

Government of Ghana’s commitment to Ghana-France cooperation

In her speech on behalf of the Minister of Finance, Hon. Seth Terkper, the Deputy Minister, Hon. Mona Quartey who represented the Government of Ghana, assured of Ghana’s unflinching commitment to the tenets of the bilateral cooperation between Ghana and France and H. E. John Dramani Mahama, the President of the Republic of Ghana’s efforts to pursuing prudent policies aimed at stabilizing the economy and also increasing the pace of the country’s transformation.

Development oriented projects France’s focus

According to H.E. François Pujolas, France will continue to support Ghana in its efforts to provide a better standard of living to its citizens through development oriented projects such as the Kumasi Extension Project.  He also urged all parties involved in the execution of the project to work to ensure that the project is completed on schedule.

He also recalled that beyond support through AFD in terms of ODA projects, French expertise and businesses are ready to participate in PPP projects that will help develop Ghana’s infrastructure and shape the smart and sustainable cities of tomorrow.

The Credit Facility Agreement was signed in the presence of H. E. François Pujolas, by Hon. Mona Quartey on behalf of the Minister of Finance, Hon. Seth Terkper, and Xavier Muron, AFD’s Deputy Resident Manager, on 28th June 2016.

 



Two Ghanaian candidates awarded CEFEB/AFD's professional Master delivered in Marseilles, France

17/06/2016

Mrs. Emmaline Ofosu and Ms. Paulina Bawa received from H.E. François Pujolas, French Ambassador to Ghana, the European Professional Master Certificate in "Economic Analysis and International Development” in Private Sector Financing from CEFEB (Centre for Financial, Economic and Banking studies).

Mrs. Emmaline Ofosu of Ecobank and Ms. Paulina Bawa of Ghana Ports & Harbours Authority responded to a call for submission of applications to the annual session sent to organisations from both public and private sectors of the economy, especially financial institutions and ministries.  

Successful applicants get the opportunity to go to Marseilles – France, to do this professional Masters Programme. Each programme is broken down into two sessions of 2½ months each, within the year.  Candidates are thus able to return to Ghana in between the two sessions to continue their official duties. 

As noted by H.E. François Pujolas, the French Ambassador to Ghana, the quality of the human capital of every country been vital in determining its economic growth, France is particularly happy to contribute to the development and growth of Ghana through this French Scholarship Programme, managed by AFD.

For more information on CEFEB, click on http://www.afd.fr/lang/en/home or
http://www.afd.fr/lang/en/home/pays/afrique/geo-afr/ghana/le-cefeb-au-ghana
 



 
 
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