AFD was authorised to operate in the Philippines in 2009 and subsequently opened an office in Manila in May 2010. AFD activities focus on the promotion of green and inclusive growth. Photo © Lon&Queta
Agence Française de Développement’s 2014 Results: Over EUR 8 billion for a more equitable and more sustainable world
Anne Paugam, Chief Executive Officer of AFD, today presented the key figures for the activity in 2014 of the central actor in France’s Official Development Assistance. With EUR 8.1 billion of commitments, up 4%, AFD has achieved another historic year for its activities to support a more equitable and more sustainable world.
“AFD’s mandate is central to the challenge of the coming years, which is to bring about new development models that ensure both the prosperity of the whole of the world’s population and preserve the planet. We contribute to this by tailoring our actions to the needs of partner countries”, explained Anne Paugam, Chief Executive Officer of AFD.
AFD is a public institution that implements France’s policy for development financing. It operates on four continents, in over 90 countries and in the French overseas territories, and works on a daily basis to meet its partners’ requirements. This results in investments in human capital, support for the private sector, financing for public transport projects, and assistance for the public policies of both governments and territorial authorities, in order to promote more equitable and more sustainable development trajectories.
AFD addresses the challenges of climate change, the impacts of which concern the entire planet, by showing on a daily basis that there are concrete solutions that reconcile climate and development. In 2014, 53% of AFD’s financing for development in developing countries generated positive impacts for the fight against climate change and 30% for PROPARCO, its private sector financing arm.
AFD’s actions bring about concrete impacts. Between 2012 and 2014, ongoing projects have:
- Got 2 million children into primary and secondary school;
- Improved housing for 2.3 million people;
- Provided 2.7 million people with access to a sustainable source of drinking water;
- Assisted the development of 246,000 small businesses;
- Supported 771,000 family farms;
- Preserved and sustainably managed 32 million hectares of natural spaces allowing biodiversity conservation.
Historic year for the climate: 53% of financing
In 2014, 53% of AFD’s financing for development in developing countries and almost 30% of its subsidiary PROPARCO’s financing for the private sector also had positive impacts on the fight against climate change as part of one of the most ambitious climate strategies among international development finance institutions, which was established at the request of the French Government. In 2014, it accounted for over EUR 2.8bn of financial commitments, including EUR 2.53bn for AFD. Since 2005, EUR 18bn have been earmarked by AFD for projects that reconcile development and climate.
AFD’s first climate bondsFor the first time, AFD has issued climate bonds with a 10-year maturity. They will finance projects that contribute to development, but also to the fight against climate change.
This EUR 1bn “climate” bond issue is the first of its kind conducted by a French public agency. It marks a new trend in the design of financial instruments to support the transition towards a low-carbon economy. Through its rigorous and innovative methodology, based on a systematic assessment of the carbon footprint of funded projects, AFD is seeking to demonstrate to financiers that it is possible to channel part of international finance towards “climate” assets.
Sub-Saharan Africa: Record commitments
In 2014, financing in Sub-Saharan Africa reached the record volume of EUR 2.95bn, i.e. 36.5% of AFD Group’s total financing (45% of financing in foreign countries). Through this strong commitment, which is in line with the objective set by the French President to provide EUR 20bn of financing to the continent by 2018, AFD aims to support the emergence of Africa in its growth trajectories. The projects supported by AFD provide access to essential services, develop sustainable cities, family farming, preserve natural resources, and build infrastructure and job-creating enterprises.
Crises: Specific intervention methods and tools
In Mali, the Central African Republic, Guinea… in countries in armed conflict or recently emerged from conflict, AFD has tailored its operating methods and tools to the specificity of these contexts. The aim is to be more responsive and work more effectively with the different partners and actors of emergency relief and development. Key projects in 2014 include:
AFD and CIRAD launch Climate Challenge, an international competition on agricultural and forestry innovation to address climate change
Call for projects launched at Convergences World Forum on 8, 9 and 10 September 2014
Agence Française de Développement (AFD) and the Agricultural Research Centre for International Development (Cirad) have launched the first international competition « Climate Challenge Agriculture and Forestry », which promotes agricultural and forestry innovation to address climate change.
Anne Paugam, Chief Executive Officer of AFD, and Michel Eddi, Chairman of CIRAD presented this competition on 9 September 2014 during the 7th edition of the Convergences World Forum, which gathers public, private and solidarity-based actors who are working to achieve the Millennium Development Goals.
Agence Française de Développement and Cirad have launched the competition “Climate Challenge Agriculture and Forestry” because climate change poses a major challenge to agriculture and a threat to both world food security and poverty eradication. AFD is particularly active in supporting developing countries in the fight against climate change. For Cirad, the topic of climate change has been central to the research it has been conducting for over 15 years with its partners in the South, with the aim of adapting agriculture in these countries to this major constraint.
This international competition aims to promote innovation and fast track the transfer and dissemination of technologies and knowledge, which are essential in bringing about innovative solutions to be devised for the future. It will support the creativity and success of exemplary projects, led by candidates from Africa, the Mediterranean, Asia, Latin America and the French Overseas : individual actors, farmers’ organizations, financial institutions, actors from the economic and social sectors, local authorities and territories.
It highlights four categories of project :
- Climate change mitigation in agriculture and livestock farming
- Climate change mitigation in the forestry sector
- Substitution and processing of agricultural and forestry products
- Adaptation to climate change and water resources management
Projects must be submitted by 1 December 2014 on the website dedicated to the competition, www.challenge-climat.com, via the online application interface.
Innovation: A new approach to mobilizing actors
Technical, methodological and operational innovations that create new local dynamics, as well as actions to build inclusive economies, will be promoted. They allow actors and family farms to adapt their practices to climate change, while ensuring that their standard of living and quality of life improve.
150 preselected applications, 12 major projects selected, 4 award winners
150 of the projects submitted will be selected on the basis of the impact their innovation has on climate change, their feasibility, viability, and the possibility of replicating them, as well as their utility and overall coherence. A Selection Committee composed of experts from the development sector will select 12 major innovations, which will be transferred to the final jury.
« This competition provides an opportunity to mobilize and pool energies from the North and South for innovative methods that need to be implemented to support sustainable development. Agriculture and forestry are two key sectors. They are vectors of innovation to address climate change and provide solutions to the major challenge of world food security. It is for this reason that I am extremely pleased to launch Climate Challenge in partnership with Cirad » says Anne Paugam, Chief Executive Officer of Agence Française de Développement (AFD)..
« This competition provides the opportunity to promote innovations that have come about as a result of research on what we call ‘climate-smart agriculture’. These new agricultural practices should provide a response to the threefold challenge of food security, climate change adaptation, and the sustainable increase in production, by promoting the development of employment in rural areas. They are particularly vital for the future of family farming, but also for conceiving and building the world of tomorrow, based on the principles of sustainable development”, », points out Michel Eddi, Chairman of CIRAD..
Awards given by prestigious jury at 2015 International Agricultural Show
The 12 initiators of innovative projects will be invited to France to present their projects at the award ceremony, which will be held in Paris at the International Agricultural Show (21 February to 1 March 2015).
The final jury comprises personalities from the field of innovation and social and economic investment and include:
- Brice Lalonde :Special Advisor on Sustainable Development to the UN Global Compact, former Under-Secretary General of the UN, former Secretary of State then Minister for the Environment from 1988 to 1992.
- Navi Radjou : consultant in innovation in Silicon Valley, father of the concept of Jugaad and frugal innovation.
- Ibrahima Coulibaly : Special Ambassador to the UN for the International Year of Family Farming, Vice-President ROPPA (Network of Farmers' and Agricultural Producers' Organizations of West Africa), President of CNOP (National Coordination of Farmers' Organizations in Mali).
- Jean-Christophe Debar : Director of the FARM foundation (Foundation for World Agriculture and Rurality).
For Brice Lalonde, President of the Jury: « Humanity is facing one of its greatest challenges: how to ensure development for all without harming the planet. Agriculture has a full role to play in this challenge and the solutions may well come from countries in the South, which have a proven creative force. So, I am proud to be contributing to bringing out solutions, via this challenge, that will allow us to feed the world, while protecting nature, the mother of future harvests. »
Find out more at :
Climate Challenge Agriculture and Forestry: www.challenge-climat.com
Le Cirad : www.cirad.fr
French Ministry of Foreign Affairs and International Development (MAEDI): www.diplomatie.gouv.fr
Anne Paugam, chief executive of AFD (Agence Française de Développement), today announced an increase in the French development agency’s 2013 financing commitments to the record level of €7.8 billion. The Agency’s 2013 annual report presentation outlined a transitional year, highlighted by a national Solidarity Summit and new foreign-aid guidelines set out by France’s Interministerial Council for Cooperation and Development (or CICID).
Sub-Saharan Africa the Priority in a Year of Growth
In 2013, AFD financing commitments, primarily loans, reached €7.8 billion, an 8% increase over 2012. Sub-Saharan Africa remains AFD’s priority region, receiving a record €2.8 million in aid; this represented 46% of all foreign aid and 37% of all AFD financing commitments. Rural and urban development, natural resource preservation and professional training projects count among the Agency’s primary efforts in the region.
An Increase in Commitments to Fight Climate Disruption
AFD is deeply committed to fighting climate disruption: 50% of its financing has a “co-benefit” for the climate. In 2013, this meant investing €2.4 billion in 77 projects that advanced development while fighting climate change and disruptions.
AFD Financing Benefits People and the Planet
Every year, the Agency’s work delivers increasingly greater impacts. AFD projects underway in 2013 had the following effects:
- 1.5 million people gained access to a reliable source of drinking water
- 411,000 people enjoyed improved sanitation services
- 1 million slum dwellers resided in better and safer housing
- 450,000 children received primary and elementary schooling
- 32,000 youths attended vocational- or professional-training courses
- 878,000 family farms received support
- 73,000 small businesses received funding
- 35 million passengers annually used new or modernized mass transit systems
- 30 million hectares were protected by biodiversity-conservation and sustainable resource-management programs. New projects financed in 2013 will help fight climate disruption by reducing greenhouse gas emissions, abating 3.3 million metric tons of carbon dioxide equivalent per year.
A Vast Network of Partners to Meet the Needs of the Developing World
AFD finds it increasingly important to work with other development partners: French local governments and companies, the European Union, and other donors. All these partners help conceive and execute aid projects that are better tailored to in-country needs. In 2013, AFD provided grants worth €48.7 million to finance 73 projects conducted by 56 civil society organizations, and joined other donors to cofinance 37 projects totaling €1.7 billion.
Anne Paugam, chief executive of AFD, stated: “In 2013, AFD committed €7.8 billion to serve development and a fairer and better-regulated globalization. Even as globalization has lifted millions out of extreme poverty, it has also aggravated all kinds of tensions and imbalances. In my view, AFD serves as France’s premiere instrument to address these issues: in Africa’s poorest countries, we fight poverty; in emerging countries, we are more focused on fighting climate change. However, the heart of our mission remains the same: to foster economically, socially, and environmentally sustainable development in the mutual interest of the developed and the developing world.”
USD 150 million French-assisted loan from AFD in support to the national government’s decentralization reforms
AFD is renewing, in 2014, its support to the Government of the Philippines in its decentralization reform program through local finance policies, by providing a USD 150M sovereign policy-based loan.
An official development assistance (ODA) loan agreement amounting to USD 150 million has been signed between the Government of the Philippines and the Agence Française de Développement (AFD - French Development Agency) on Wednesday April 16, 2014. The loan will partially finance the 2014 general budget requirements of the National Government in the framework of its Local Government Finance and Fiscal Decentralization Reform Program, in co-financing with the Asian Development Bank (ADB).
Finance Secretary Cesar V. Purisima signed the agreement with French Ambassador Gilles Garachon and AFD Country Director Luc Le Cabellec in the presence of European Ambassador Guy Ledoux and National Treasurer Rosalia V. De Leon. The provision of the highly concessional loan by the French Government through AFD is in recognition of the National Government’s accomplishments on decentralization reforms.
2012 is drawing to a close with sharp growth in AFD’s activity in Asia (+60%). This growth has been marked by a scaling up of action to fight against climate change. The identification of projects in new geographical areas gives a promising sign of new operations in Central Asia and the Caucasus.
Climate issues the priority
• An overall growth in activities, highlighting the priority AFD gives to climate issues (over 70% of its activity). This is particularly the case in China and India, where its operations now come at no cost to the French Government and support global public goods and French influence.
• The first projects planned in new countries of operation, such as Bangladesh and Burma.
• Intense project identification activities in Central Asia and the Caucasus.
• A strengthening of AFD’s traditional partnerships in Asia (Asian Development Bank, JICA) and the launch of new partnerships scaling up AFD’s presence in the region. This concerns initial contacts with Korean and Australian cooperation and the first mobilizations of European financing under the investment facilities.
• The strong social, economic and environmental impact of the development programs that are implemented – particularly in China to rebuild Sichuan Province – with a focus on infrastructure, sanitation and renewable energy development (biogas via the development of biodigesters in China and India).
New objectives, new regions in 2013
• Implementation of AFD’s new strategy for operations in Asia for 2013-2015, based on support for sustainable development and economic diplomacy, which will subsequently be translated into country strategies (initially Indonesia, Vietnam, China and India).
• New growth in activity expected, particularly with the first operations in Central Asia and the Caucasus.
• The celebration of the 20th anniversary of AFD’s presence in Asia, which began with its operations in Vietnam, Cambodia and Lao PDR in 1993.