Economic and Financial Transition

To access shared prosperity, ensure a continuous increase in income, create employment opportunities, guarantee macroeconomic stability, and meet the essential needs of the population, all economic players must contribute.
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Economic and financial transition, Colombo, Sri Lanka
First and foremost, supporting economic and financial transitions means facilitating changes in the economy to produce goods and services with high added value. It also means promoting diversified economic models and financial systems and orienting resources toward sustainable development.

AFD supports structural transformations that generate long-term productivity gains, such as expanding the digital and energy-efficiency sectors. Deeper capital markets and more diverse financing tools and sources (guarantees, public-private partnerships, social impact contracts, green bonds, etc.) will ensure that the effects of these transformation processes last.

Indeed, financial systems play a primordial role in value creation by supplying financial products suited to the needs of various economic players. As called for in the Addis Ababa Action Agenda, mobilizing funding from multiple sources (sovereign and non-sovereign public funds, private-sector investors and companies) is essential.

Accessing shared prosperity

commerçante, Colombie, magasin

Fostering economic and financial transitions also means supporting the creation of social and environmental added value to reduce inequalities and share prosperities. We support entrepreneurship and the financial inclusion of poor or marginalized populations to create new economic opportunities. We promote hybrid economic models, such as a social and inclusive economies, social entrepreneurship, and non-profits that provide public services.

Promoting resilient financial systems

port La Réunion, bateau

As economies grow more to open to international commerce and competition, we bolster the resilience of financial systems and productive apparatus. We do this by supporting value chain diversification and evolution to increase locally-produced added-value. Better integration into international trade also allows companies to find new markets and new sources of financing abroad.

Mobilizing all players

discussion sur le toit de la réseau d'eau Amasuba, Ouganda

We encourage the involvement of all economic actors to contribute to the Sustainable Development Goals (SDGs) as much as possible, by mobilizing local savings, involving long-term investors and public authorities to finance infrastructure projects, plants and equipment, and household access to essential services and goods. We support ambitious public policies that allow governments to invest in public enterprises that can deliver essential services. Such policies help governments preserve financial stability in the event of an economic or financial crisis.