FEXTE: A cooperation instrument

The Fund for Technical Expertise and Experience Transfers (FEXTE) finances technical cooperation programs in middle-income countries. In 2016, AFD committed EUR 6m under this mechanism.
Woman on a building site of construction, Colombia
FEXTE meets the development needs of middle-income countries, feeds into public policy dialogue, and promotes French expertise.

Eligibility criteria

The first condition to benefit from FEXTE financing is to be ranked as a middle-income country (MIC). The list of MICs is established by the World Bank every year based on average per capita gross national income (GNI). 


The technical cooperation program is also required to meet 4 criteria:

  • Be in line with AFD’s geographical and sectoral mandates 
  • Concern a sector with a priority focus on “green and inclusive growth”
  • Promote French expertise or experience 
  • Contribute to French influence.

Eligible programs

The mechanism may be used to finance several types of programs:

  • Technical assistance
  • Expert missions, planned for the long term or only for the short term
  • High-level training actions 
  • Strategic partnerships between public institutions 
  • Studies (excluding feasibility studies), etc.  

3 examples of programs financed by a FEXTE

Technical cooperation: the services of a French municipality assist another municipality in the implementation of an urban mobility project. This experience sharing may concern all the aspects of the project: normative aspects, service management methods, etc.

Technical assistance: an electricity operator uses French provisions as a basis to finance major investments in renewable energies. 

A technical cooperation program: FEXTE supports sectoral financing or an investment plan for which French expertise can be mobilized.   
 

Find out more
Loans: AFD’s main financing tool
Infotep, vocational training in Dominican Republic

AFD allocates different types of loans. Their terms are determined by the nature of the project and its environment (political, economic, social, environmental impact and context) and the quality of the borrower (sector of activity, rating, guarantees).

Grants: For the development of the poorest countries
Distribution of drinking water in Kinshasa

AFD uses grants to finance actions in the social sector (health, education), rural and urban development initiatives, and infrastructure projects. 

C2D: A mechanism to relieve indebted countries
"Excellence Learning school" in Niamey, Niger

The Debt Reduction-Development Contract (C2D) is a tool to restructure the debt of certain countries. In practical terms, once a Heavily Indebted Poor Country has signed a C2D with AFD, the country continues to service its debt until repayment. At each payment on the due date, AFD transfers the equivalent amount to the country in the form of a grant. This amount is used to finance poverty reduction programs.

Financing NGO projects
Technical college, students, learners, education, vocational training, Nouakchott, Mauritania

The direct financial cooperation between AFD and CSOs today covers a wide range of instruments tailored to the specific characteristics of CSOs and their added value: support for innovation (Sectoral Innovation Facility for NGOs, financing from the French Facility for Global Environment, FFEM), financing for operations in fragile, crisis and post-crisis contexts (APCC), and support for their initiatives, via the CSO Initiatives mechanism.

Guarantees: An instrument to mobilize local instruments
Sewing workshop in Abidjan neighbourhood, Niamey, Nigeria

The guarantees allocated by AFD facilitate financing for small businesses and microfinance institutions in developing countries. They also help French SMEs set up abroad. This means that they are an effective tool for promoting investment and job creation.

Adapt'Action: Working together to tackle climate change
Brazil, Curitiba, Souza

Following the Paris Climate Agreement, AFD has launched Adapt’Action to support countries seeking technical assistance for the institutional, methodological and operational implementation of their commitments to the fight against climate change.