Innovative and appropriate tools

Finance projects

In 2019, AFD passed a new milestone and for the first time committed over EUR 14,1bn for development projects.
We have a wide range of innovative and appropriate financial tools to support our partners. The diversity of our tools is a major asset for development. Year after year, we strengthen and extend our range of products and services depending on changes in our partners’ needs and their priorities.
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high voltage electrical tower, energy, French Polynesia
Infotep, vocational training in Dominican Republic

Loans

AFD’S MAIN FINANCING TOOL

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).

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Distribution of drinking water in Kinshasa

Grants

FOR THE DEVELOPMENT OF THE POOREST COUNTRIES

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

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"Excellence Learning school" in Niamey, Niger

C2D

A MECHANISM TO RELIEVE INDEBTED COUNTRIES

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.

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Technical college, students, learners, education, vocational training, Nouakchott, Mauritania

Financing NGO projects

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.

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Woman on a building site of construction, Colombia

FEXTE

A COOPERATION INSTRUMENT

Open configuration options FEXTE meets the development needs of middle-income countries, feeds into public policy dialogue, and promotes French expertise.

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Sewing workshop in Abidjan neighbourhood, Niamey, Nigeria

Guarantees

AN INSTRUMENT TO MOBILIZE LOCAL INSTRUMENTS

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.

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Skycrapers in Manila, Philippines

FICOL

A springboard for the external action of French territories

The more development decisions are made at local level, the more they are effective. FICOL is the result of this observation: a mechanism which allows French local authorities to support projects in developing countries.

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Brazil, Curitiba, Souza

Adapt'Action

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.

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The 2050 Facility, AFD

The 2050 Facility

To provide support for some 30 of the highest emitting and most vulnerable developing countries in their transition to a low-carbon and resilient development model, AFD has created a dedicated facility: the 2050 Facility.

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Kiwa Initiative, AFD, biodiversity and climate change adaptation in the Pacific

The Kiwa Initiative

To strengthen the adaptation of the Pacific territories to the impacts of climate change and better protect their biodiversity, the Kiwa Initiative is supporting projects that promote nature-based solutions via grants and technical assistance.

The regional project window managed by AFD finances projects of over €1.5 million. Applications are submitted online and analyzed every six months.

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Mali, woman, child

Minka

The Peace and Resilience Fund, or “Minka,” was launched in 2017. This AFD tool is dedicated to peacebuilding as part of the French strategy “Prevention, Resilience and Sustainable Peace.”

Minka provides €250 million per year to support the prevention of violent conflicts and crisis resolution. It works in the medium term to implement projects in the Sahel, the countries around Lake Chad, the Central African Republic, and the Middle East.

Minka targets four critical conflict basins via four initiatives: Minka Sahel, Minka Lake Chad, Minka CAR, and Minka Middle East.

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Sunref, hands

SUNREF

AFD’s green finance label

Sunref is one of the innovative tools developed by AFD to promote the emergence of “green” finance tailored to the needs of economic actors in countries in transition. It aims to allow local financial institutions to take action to fight against climate change. 


Sunref helps develop the practices of financial actors via financial support and technical assistance to facilitate access to green energy and promote the sustainable management of natural resources. The ultimate goal: ensure the development of a low-carbon economy and allow economic actors to adapt to this transformation. 
 

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Agreenfi, illustration

AGREENFI

AFD GROUP’S AGRICULTURAL AND RURAL FINANCE LABEL

Provide actors in rural areas in developing and emerging countries with access to appropriate and sustainable financial services, as well as customized technical assistance, this is the objective of AGREENFI. How? By encouraging local financial institutions to take action for the reduction of territorial inequalities and shared growth, while transforming their practices to promote a more sustainable development model.

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pathway, clay, Nigeria, Graff, project preparation funds

Project preparation funds

Project preparation funds are used to finance feasibility studies and technical assistance in order to prepare future investment projects, mainly with climate co-benefits. They target both specific sectors and regions. The objective: ensure that needs are properly identified, while respecting the strategies and standards of the institution which implements them. 
These tools are increasingly common and are generally managed by AFD, but they are financed by other donors, mainly the European Union. 

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