2015 results of AFD EUR 8.3bn to support sustainable development trajectories
Anne Paugam, Chief Executive Officer of AFD, presented today the key figures for the public institution’s activity in 2015. It has achieved a record year with EUR 8.3bn of commitments, up 15% since 2012, for a more just and more sustainable world. It is a record year in terms of the volumes of commitments for Africa, Asia, the Middle East and Latin America, as well as for the French overseas territories, and in particular for financing that has an impact on both development and the climate.
“2015 is a record year for AFD in terms of the amount of commitments for sustainable solutions to fight poverty and inequalities and for a more just and balanced globalization, as well as a year which has structured the international development agenda. The Addis Ababa Conference on Financing for Sustainable Development, the adoption of the SDGs in New York, and COP21 on the climate in Paris have defined a new universal framework, which concerns the entire planet”, said Anne Paugam, Chief Executive Officer of AFD. “AFD’s action, which is conducted for the benefit of people in our partner countries, contributes to a more just globalization and more sustainable development. This action is also in the interests of the French. This is, for example, clear for French people on climate and migration issues.”
“The French President’s decisions announced in September 2015, and the ambitious targets of increasing AFD’s commitments by 50% by 2020, bring the institution up to a level to meet the challenges of the 21st century. They provide a concrete response to the challenges facing the world today, where taking action in the South requires addressing the challenges which France is already facing. This mobilization offers prospects to meet the universal challenges posed by the Sustainable Development Goals”, she continues.
The new international development agenda confirms the relevance of AFD’s position, which already reflects the universality of the SDGs. AFD operates with the same philosophy in the French overseas territories and developing countries, on every continent, with a single mandate to finance sustainable development. AFD innovates in its operations in order to implement new development models, align social standards at a higher level, and address environmental challenges, especially the fight against climate change.
Milestone year for the climate
Throughout the year, AFD has demonstrated that there are concrete solutions, reconciling the climate and development, to address the challenges of climate change, which concern the entire planet. In 2015, 55% of AFD’s financing had positive impacts on the fight against climate change.
Porto-Novo, Green City: AFD, alongside the Urban Communities of Cergy-Pontoise and Greater Lyon, has provided EUR 9.2m of financing to the Benin municipality for the preparation of a sustainable urban development plan. The aim is to turn Porto-Novo into a resilient city, adapted to climate change, and concerned about preserving its environment. The project includes the development and environmental protection of the banks of lagoons and poor neighborhoods, by developing access roads to the banks and supporting income-generating activities (market gardening, fish farming).
Sub-Saharan Africa: A priority
In 2015, financing in Sub-Saharan Africa reached a record volume of EUR 3.1bn, i.e. 38% of AFD’s commitments, up 6% compared to 2014. Sub-Saharan Africa accounted for 81% of the State’s financial efforts in 2015. Over half the projects supported by AFD concern the development of infrastructure, which opens up access to essential services, allows the growth of sustainable cities, family farming, the preservation of natural resources, and the development of job-creating companies. Strengthening human capital via education, vocational training, social protection and health are the other key sectors for operations. In September 2015, AFD adopted a 5-year Sahel Regional Action Plan. This specific strategy for operations will be implemented in consultation with NGOs on the basis of three priority areas: employment, demography and the integration of territories.
Fight against yellow fever: WHO estimates that every year there are 200,000 cases of yellow fever and 30,000 deaths caused by this disease for which there is no treatment. Africa is particularly affected (90% of cases). AFD is supporting the Institut Pasteur Foundation in Dakar (FIPD), the only vaccine production unit based in Africa, with a EUR 6.5m subsidized loan. This loan will finance the creation of a new vaccine production unit, and will thereby permanently reinforce the fight against the disease.
Need to be agile to address crises and vulnerabilities
Crises can no longer be considered as an exception. Some 2.6 billion people have been affected by a natural disaster over the past 10 years, and over 1.5 billion people are currently living in countries affected by a violent conflict. AFD adapts its operating methods in crisis areas. Firstly, by reinforcing the coordination with France’s humanitarian and security interventions. Secondly, by targeting operations that have an impact on both the development of a region (to strengthen the adaptation and prevention capacity) and on the vulnerabilities which fuel the crisis (to address the causes).
AFD has allocated a total of EUR 5m to the NGOs Amel, Arcenciel and Première Urgence Internationale in order to provide long-term support to Lebanon and Jordan. Several areas in the countries, which experience water shortages, an increase in sanitation needs, and a saturation of education and health facilities, will benefit from a reinforcement of social services for the host populations and vulnerable refugees, and psychological and social care for traumatized populations, via individual and collective actions (families and communities).
AFD’s actions bring about concrete impacts. Between 2013 and 2015, ongoing projects have:
- Got 2.6 million children into primary and secondary school;
- Improved housing for 2.6 million people;
- Provided 3.8 million people with access to a permanent source of drinking water;
- Supported the development of 150,000 small businesses;
- Assisted 710,000 family farms;
- Conserved and sustainably managed 34 million hectares of natural areas, thereby preserving biodiversity.
An agency with a capacity to meet the challenges
In September 2015, the French President announced a new objective for France’s development policy, by giving its bilateral instrument AFD the additional capacity to meet the challenges of the new international development and climate agenda adopted in 2015, and establishing closer ties with CDC Group. To achieve this, AFD Group’s capacity for operations will increase by 50% to EUR 12.5bn by 2020, and its capital will double in 2016. Loan financing for developing countries and international solidarity will increase by EUR 4bn by 2020, including EUR 2bn for the fight against climate change and its consequences, while grants will increase by some EUR 400m.
“AFD Group will thereby reach a new scale and will continue to be a key actor in concert with development actors, working for France’s foreign policy and influence, and for the benefit of the French. The implementation of this has been initiated. Its activity will already increase by EUR 700m in 2016 to EUR 9bn of activity”, adds Anne Paugam.