French Polynesia

French Polynesia is made up of islands and atolls scattered over 5.5 million km² in the middle of the Pacific Ocean. Because of its geographical isolation, it encounters significant economic challenges in accessing major markets. AFD is guiding French Polynesia on its path to a sustainable development that reconciles the fight against inequalities, the emergence of a new development model, and the preservation and promotion of natural heritage.

Context

French Polynesia is a French overseas collectivity more than 17,000 km from mainland France, in the middle of the Pacific Ocean. It is spread over an area as large as Europe but is sparsely populated (fewer than 300,000 inhabitants). The 118 islands that make up French Polynesia, 67 of which are inhabited, are grouped into five archipelagos and are home to exceptional biodiversity.

Between 1962 and 1996, the Centre d’Expérimentation du Pacifique carried out nuclear weapons testing in French Polynesia. This had a profound impact on its economy, which had to reorient itself after the end of nuclear testing and the mass arrival in Papeete, the Tahitian capital, of people from other islands. But the fragmentation of its territory and its geographical distance isolate it from major markets and France, a situation that can penalize its economic activity.

French Polynesia nonetheless has significant assets, including a vast maritime area of 5.5 million km² and strong tourism appeal. The territory also benefits from a growing blue economy. While fishing, supported by a large exclusive economic zone, and pearl farming are well established, much of its maritime potential remains underdeveloped.

One of the main challenges facing French Polynesia is to ensure balanced territorial development. This requires reducing inequalities and addressing persistent employment and housing shortages.

AFD is a leading partner of French Polynesia. It works in partnership with the private and public sectors to promote economic, social and environmental development, using appropriate tools such as loans, guarantees, and advisory support.

The AFD French Polynesia field office is attached to the Pacific Ocean Regional Office.

Our approach

AFD and French Polynesia: harmonizing the territory’s economic, social and environmental development

French Polynesia’s geographical situation is unique. Its 118 islands and atolls are scattered over five archipelagos spread over a space the size of Europe; yet, its location is quite isolated in the Pacific Ocean. The inhabitants of French Polynesia are concentrated on Tahiti, whereas the other islands have low population densities. All this makes harmonious territorial planning there a big challenge.

Polynesian cities, towns, and villages are key players in social and territorial cohesion. AFD provides them support in various ways. For example, it finances their purchases of equipment and the construction of essential facilities, and it helps give advisory support to guide their financial planning and bring their projects to fruition. AFD also annually publishes the “Observatory of Municipalities”, a decision-making tool made available to elected officials and the public sphere. AFD supports local governments in their goal of providing public services and to make the islands less remote, particularly in the following sectors:

Youth and sports: by supporting French Polynesia’s 2030 youth strategy and providing financial backing for the Pacific Games.
Health: by financing the renewal of part of the fleet dedicated to Air Archipels’ medical evacuations. The Covid-19 crisis has called into question the Polynesian social protection and medical contract and its economic equilibrium, which had already been strained due to major societal changes at work.

To support impactful projects and stimulate the local economy and employment, AFD is mobilizing its tools targeting the Polynesian private sector. It provides co-financing as a bank, to support strategic projects for the territory’s economic development in tourism, transport, energy, and other sectors.

AFD is also a shareholder and board member of several companies participating in general interest missions:

Socredo, a sustainable, innovative and inclusive development bank;
Air Tahiti, which ensures a public service throughout the territory; and
Aéroport de Tahiti, which manages Tahiti Faa’a Airport and the airfields of Bora Bora, Raiatea, and Rangiroa.

Through its subsidiary Sogefom, AFD helps boost the dynamism of Polynesian entrepreneurship by guaranteeing loans granted to VSEs/SMEs by local banks: 70% of the loans granted by the three local banks to small businesses are guaranteed by Sogefom.

We support entrepreneurship and innovation by funding studies on the social and solidarity economy (SSE). In this way, we contribute to the structuring of the SSE in Polynesia and help develop local and ancestral knowledge.

In accordance with its 100% Paris Agreement mandate and the commitment of French Polynesia to achieve 75% renewable energy in its electricity mix by 2030, AFD supports public and private actors working to promote the territory’s energy transition.

In the area of climate change mitigation, AFD supports project developers in renewable energy, transport, energy management, and energy efficiency by financing studies and investments. This support has contributed to the financing of the first bioclimatic building in French Polynesia, the Papetoai primary school. Designed to be close to energy self-sufficiency, the school provides its 300 students with improved learning conditions in a climate-adapted building.

AFD also provides technical, legal, and financial support to local authorities to support the implementation of public energy policies. In terms of climate change adaptation, AFD acts at both the local and regional levels. Locally, it finances the construction of cyclone-resistant shelters in towns and villages. Regionally, it supports the CLIPSSA program, which produces forward-looking climate data to identify vulnerabilities in South Pacific territories and support the development of adaptation strategies.