Signing of Strategic Alliance Charter between AFD and Caisse des Dépôts marks first step towards closer ties between the two institutions
Today, the Chief Executive Officers of Caisse des Dépôts and AFD have signed a Strategic Alliance Charter in the presence of the French President.
Rémy Rioux, Chief Executive Officer of Agence Française de Développement points out: “The reason for the closer ties between AFD and Caisse des Dépôts wanted by the French President is to provide France with a coherent mechanism to finance sustainable development, both nationwide and abroad, similar to those established in other European countries, but also in a number of emerging and developing countries. These closer ties are essential to support, at international level, the major transitions we are all facing: demographic and social transition, energy and ecological transition, territorial, digital, political and citizen-based transitions”.
For Pierre-René Lemas, Chief Executive Officer of Caisse des Dépôts: “Both institutions share common challenges: the Sustainable Development Goals and COP21 Agreement. They have the shared objective of supporting and speeding up the major transitions. We aim to have greater clout together on the European and international scene for the main development challenges, transitions, mobilization of savings and long-term investment. We also want to scale up our role in the implementation of the Paris Climate Agreement”.
Several potential ways of pooling expertise between Caisse des Dépôts and AFD have been identified in this context, in particular: the implementation of the Paris Climate Agreement and the convergence of the strategies of the two institutions in terms of carbon footprint, the development of the provision of services for smart cities, creating innovative urban services in France and around the world, broadband deployment and the use of digital technology to speed up the achievement of the SDGs, and economic research and innovation, with the creation of a development “Lab” at AFD, which Caisse des Dépôts will support.
This alliance will allow AFD to strengthen its territorial base thanks to Caisse des Dépôts’ relations with its partners (companies, local authorities, etc.). At the same time, AFD will contribute to the internationalization of Caisse des Dépôts and will be able to assist it in the support it provides to its partners at international level. To achieve this, AFD and Caisse des Dépôts will facilitate staff exchanges. AFD agencies will receive Caisse des Dépôts missions in foreign countries and each Caisse des Dépôts regional department will have “internationalization correspondents for territories”. These positions may be entrusted to seconded AFD staff. The objective will be to assist local authorities in their positioning for setting up, financing and implementing their actions and projects.
Finally, a joint investment vehicle, currently being studied, with a target size of EUR 500m, will be set up in the coming year. It will focus on financing infrastructure for sustainable development in developing countries, especially in Africa: renewable energies; water and sanitation; telecommunications and digital infrastructure; waste treatment; transport; territorial development; health and education.
► About Caisse des Dépôts Group
Caisse des Dépôts and its subsidiaries constitute a public group and long-term investor for the benefit of the general interest and economic development of territories. Its mandate was reaffirmed by the Economic Modernization Act of 4 August 2008. The Group is recognized for its expertise in mandate management and focuses its action on four strategic transitions for France’s long-term development: territorial, ecological and energy, digital, demographic and social transitions.