Frequently Asked Questions

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Agence Française de Développement (AFD) is France’s public development bank. It finances long-term investments that meet its partners’ development needs while serving the strategic interests of France and the European Union. It also supports development in France’s overseas territories.

Founded in 1941 at the instigation of General de Gaulle, AFD is France’s public development bank. As a vehicle for France’s international partnership policy, AFD’s activities are guided by priorities set by the French government and carried out in coordination with embassies. It finances long-term investments that address the development challenges faced by the partners with which AFD Group works, while also serving the strategic interests of France and the European Union. It also invests in the development of French overseas territories on behalf of the French government.

AFD Group is made up of three complementary entities: AFD, France’s public development bank, which primarily finances the public sector as well as civil society organizations in overseas France and internationally; Proparco, France’s development finance institution specializing in the private sector; and Expertise France, France’s technical cooperation agency, whose mission is to strengthen public policy in partner countries.

The group invests in essential areas of development: access to water and energy, health, education, transport, agriculture, the creation of quality jobs, support for businesses, climate action, biodiversity protection, and efforts to promote peace, stability, and security. It works closely with public authorities, local governments, businesses, organizations, and beneficiary communities. 

Projects financed and implemented by AFD Group must meet three key objectives: to deliver tangible results for financed partners, to serve France’s strategic interests, and to align with a responsible and sustainable financing model.

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France finances development projects abroad for reasons of international solidarity, but also to serve broader objectives: protecting French citizens from global issues that transcend national borders (climate change, health, security and stability), advancing its diplomatic priorities, and creating economic opportunities for French businesses.

Certain challenges that affect France directly happen outside of its own borders. Issues such as climate change, epidemics, food crises, political instability, and forced displacement have wider implications that go far beyond the countries where they are taking place.

France invests in other countries to prevent crises, support projects that benefit local communities, and forge lasting partnerships. This policy aims to promote solidarity, stability, and the protection of global public goods, as well as economic, scientific, and diplomatic cooperation.

AFD is one of the instruments used by the French government to implement these priorities. It intervenes at the request of its partners, while operating within the framework set by the French government and in conjunction with French embassies.

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International solidarity and France’s interests are mutually reinforcing. Through its actions, AFD Group pursues three key objectives: delivering tangible results for its partners, serving France’s interests, and maintaining a sustainable financial model.

AFD Group’s projects are aligned with the French government’s priorities. By investing in climate action, biodiversity protection, global health, the stability of neighboring regions, and economic development, it helps to prevent crises that could directly impact the French people.

Its activity also strengthens France’s international partnerships and showcases French expertise, businesses, local authorities, and universities, as well as France’s experience in the public sector, around the world. It thereby contributes to increasing France’s global reach and advancing its interests in an increasingly interconnected world.

AFD Group’s projects also generate economic spin-offs for France. Its financed projects create opportunities for French businesses, generating €12 billion in economic spin-offs between 2020 and 2025. For example, Poma, the world leader in cable transport, is working on an urban cable car project in Medellín, Colombia. Suez Consulting is currently developing the climate action plan for Brazzaville, in the Republic of the Congo, which is financed by AFD through the Ciclia Facility. 

AFD financing also helps drive employment (French civil society organizations employ 50,000 people in France), and innovation, while also promoting development in French overseas territories. 

Lastly, the Group operates under a sustainable financial model that enables it to finance its activities over the long term and pay a portion of its profits to the French State each year.

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AFD does not operate in isolation: its mandates, priorities and projects are set by legislation and government policy, and are subject to strict rules of governance, appraisal and oversight.

AFD Group’s mandate is defined by law and by the Code monétaire et financier (French Monetary and Financial Code). AFD and its subsidiaries have an ongoing public-interest mandate: they contribute to France’s development policy abroad and to the development of the French overseas territories.

The Group’s priorities are then defined by the public authorities. They are primarily set by France’s Framework and Programming Act on Development and International Solidarity of August 4, 2021, decisions by the Presidential Council for International Partnerships, guidelines from line ministries, and the Contract of Objectives and Resources entered into with the French State. It also coordinates its strategy with French embassies in partner countries.

France’s international commitments, such as the Sustainable Development Goals (SDGs) and the Paris Agreement, also serve as reference frameworks. Finally, every project financed by AFD must meet its internal financial, legal, environmental, social, and compliance requirements.

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AFD’s teams assess each project’s compliance, viability and effectiveness. All financing decisions must then be approved by the Board of Directors, which is made up of representatives from the French government, Parliament, and civil society.

The decision to finance a project is never made by one person alone. Each project starts with a need identified together with a partner, and must be aligned with the priorities of France, the country involved and, where applicable, the European Union or other co-financiers.

AFD’s teams then appraise the project by assessing its added value, feasibility, financing structure, the partner’s capacity to manage the project, environmental and social risks, compliance issues and deliverables. Following this process, they produce a comprehensive report for the organizational body responsible for making the decision. 

Finally, project financing is approved by the relevant body depending on the type and amount of funding: the Board of Directors, a specialist committee, or the Chief Executive Officer acting on behalf of the Board. Representatives from the government and four members of Parliament sit on AFD’s Board of Directors.

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The French government sets AFD’s mandate and priorities. AFD is subject to multiple layers of oversight: from its supervisory authorities, Board of Directors, the French Parliament, and the “Cour des Comptes”, as well as through audit and compliance procedures, and project evaluations.

AFD’s activities are subject to oversight at multiple levels. It operates under the supervision of the French State, primarily through the ministries responsible for overseeing development, the economy, and overseas France. Its Board of Directors approves its strategy, financial statements, risk management framework, and the main operations within its remit.

As a financing institution, AFD is subject to strict oversight by the banking regulator, particularly with regard to its risk management, the traceability of its financial operations, and the measures taken to prevent money laundering and the financing of terrorism. 

AFD’s operations are frequently and independently audited by the French Parliament, the Cour des Comptes (France's supreme audit institution), statutory auditors, and the relevant supervisory bodies. Its projects are constantly monitored by AFD teams in the field, and are subject to systematic financial audits, comprehensive reviews by operational teams at the end of each project, and evaluations. AFD has also put in place transparency procedures and a complaints handling mechanism.

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90% of AFD Group’s financial activity consists of loans financed through borrowing on the financial markets. This model operates through loan repayments and the interest paid by borrowers, and AFD pays a share of its profits to the French government each year.

The majority of financing used by AFD to grant loans comes from the financial markets: the Group borrows around 90% of its financing through bond issues. These borrowings have no impact on France’s public debt and are repaid in full using the income from loan repayments and interest.

AFD’s projects may also be granted third-party financing from international partners. In 2025, €500 million in grants came from funds delegated mainly by the European Union (83%), but also by the Green Climate Fund, the Global Partnership for Education, and other partners.

The French government also provides a small proportion of AFD’s funding. This is primarily used to finance grants and technical assistance, provide certain loans on more favorable terms through interest-rate subsidies, and strengthen AFD’s capital base.

AFD’s financial model is primarily based on the income earned from loan repayments and interest. The financing granted by AFD is therefore in no way equivalent to the funding received from the State budget each year.

Although the French government provides AFD with some public funding, it also receives a regular financial return through dividends. In 2025, AFD Group reported net income of €417 million, 25% of which – just over €104 million – was paid to the French government, rising considerably in recent years.

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AFD’s cost to the French government is far less than the amount of financing it grants: around 90% of its loans are financed through the financial markets. In 2026, the budget appropriations it received amount to around 0.07% of total public expenditure by the French government and the public authorities. AFD covers all of its own operating costs through self-financing.

The total financing granted by AFD Group is in no way equivalent to the amount of budget appropriations received from the French government: around 90% of its loans are financed through borrowing on the capital markets and are subsequently repaid by AFD’s customers.

The budget appropriations allocated to AFD, as set out under the 2026 Finance Act, amount to around 0.07% of total public expenditure by the French government and the public authorities in 2026 (source: legifrance.gouv.fr website). These appropriations mainly go toward financing grants to support the poorest countries in the world and projects implemented by civil society organizations, as well as technical expertise, certain guarantees, concessional loans with interest rate subsidies to the most vulnerable countries, and contributions to ensure the institution’s sound financial position. These budget appropriations must be approved each year under France’s Finance Act. In addition, AFD self-finances all its operating costs through the income generated by its activities and primarily the interest earned from loans.

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AFD’s loans are repaid by its borrowers. Based on this model, AFD Group is able to provide long-term financing to new projects that support France’s priorities.

Yes, AFD’s loans are repaid with interest. The terms vary depending on the country, the beneficiary and the type of project: some loans are granted at the typical market rates; others are concessional loans with longer repayment terms or reduced interest rates.

Like any financial institution, AFD assesses the borrower’s ability-to-repay before any loan is granted. It then monitors the loan repayments throughout its term and sets aside provisions to cover any potential risks.

Loans should not be confused with grants. The loan amount is not a permanent transfer of funds: it creates a receivable that must be repaid.

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France does not grant new sovereign loans to countries that risk exacerbating debt distress. Financing arrangements are tailored to the specific circumstances of each partner country.

When a government borrows money, the loan is incorporated into its public debt. It is therefore essential to ensure that this debt remains at a sustainable level and that any financed investment provides long-term benefits for the country. AFD does not grant loans to governments without assessing the country’s ability-to-repay based on research conducted by the International Monetary Fund (IMF) and the World Bank Group, as well as the Organisation for Economic Co-operation and Development (OECD). Financing terms are tailored to the country’s specific situation, the type of project and the level of risk.

France also applies a rule called the “sustainable debt doctrine”. It only approves new sovereign loans to low-income countries if classified by the IMF and the World Bank Group as at a low risk of overall debt distress, or at a moderate risk of overall debt distress if they have implemented an economic stabilization program in collaboration with the IMF. New sovereign loans are not authorized in low-income countries with a high risk of overall debt distress, or in regions classified by the OECD as at the highest level of risk. In such cases, AFD prioritizes the use of grants or other financing instruments, subject to the rules and exceptions laid down by the French government.

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AFD Group grants loans to a wide range of beneficiaries including governments and local authorities, as well as public institutions, banks, private companies or civil society organizations, depending on the project. The financing granted is not systematically paid into a government’s public budget.

Depending on the project, AFD Group’s financing and technical cooperation programs may benefit governments, local authorities, public institutions, development banks, financial institutions, or civil society organizations.

The Group’s subsidiary Proparco provides financing and support for the private sector, while Expertise France implements technical cooperation programs for public sector stakeholders, civil society organizations and the private sector.

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The Group’s oversight does not end with the decision to grant financing; it monitors projects throughout their entire life cycle.

AFD has strict monitoring mechanisms in place to ensure the proper use of all the financing awarded, in accordance with current banking regulations.

The conditions for use of these funds are set out in financing agreements signed by borrowers. Disbursements may be paid in installments and are contingent on the project’s progress, the provision of supporting documents or compliance with specific commitments.

AFD’s teams monitor the project’s technical and financial implementation throughout its life cycle. They also conduct audits, documentation-based or on-site inspections, and evaluations. Financed contracts must comply with AFD’s procurement and integrity policy.

AFD also implements procedures to combat fraud, corruption, money laundering, and the financing of terrorism. In the event of a serious breach or failure to meet commitments, disbursements may be withheld and corrective measures may be required.

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AFD Group plays a major role in financing development in France’s overseas territories. It supports local authorities, businesses, and public sector stakeholders by investing in economic development, advancing the green transition and improving the living conditions of the 2.9 million people living in overseas France.

AFD has a legal mandate to support the development of France’s overseas territories. It provides financing to local authorities, healthcare institutions, and businesses, and invests in strategic sectors such as housing, water, sanitation, transport, and the energy transition.

These territories face a range of specific challenges, owing to their remoteness, insularity, high infrastructure costs, and vulnerability to natural disasters and climate change. AFD grants long-term financing to support investment in essential services, boost economic activity and accelerate the green transition. 

AFD also promotes the regional integration of France’s overseas territories by fostering cooperation between neighboring countries on common issues such as health, the oceans, energy, biodiversity and disaster risk management.

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In emerging countries, AFD Group draws on a combination of financing from AFD, investment from Proparco, and the expertise of Expertise France, to address development issues and global challenges, while strengthening partnerships with France.

Emerging countries play a major role in the global economy and account for a significant proportion of the world’s population and greenhouse gas emissions. Decisions made in these countries can have far-reaching effects that transcend national borders, particularly on issues such as climate change, biodiversity, global health, and economic stability.

AFD Group deploys a range of financial instruments in these countries according to their needs. AFD primarily grants financing to the public sector, in particular through repayable loans. Proparco supports businesses and private financial institutions, particularly with projects involving climate action, biodiversity and gender equality. Expertise France implements technical cooperation programs and shares its expertise with local stakeholders, while also enhancing the expertise of the French public sector organizations involved. This complementary support aims to achieve a common goal through various means: financing, private investment and expertise.

These initiatives also enable France to forge strong partnerships with countries that play an important strategic and economic role on the world stage, and to work with them on shared priorities such as climate change, health, and the prevention of organized crime. They also benefit French companies, local authorities, and experts, by creating new opportunities. The Group tailors its approach to the specific circumstances of each country and to the priorities set by the French government. 

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In Ukraine and Moldova, AFD Group has mobilized its three areas of expertise – public sector financing, private investment, and technical cooperation – to strengthen economic and institutional resilience, forge closer ties with the European Union, and contribute to stability across the European neighborhood, a strategic priority for both France and Europe.

Amid growing geopolitical tensions, AFD Group is working to increase the resilience of countries on the EU’s eastern border, where European ambitions converge with domestic challenges. France’s commitment serves a dual purpose: to support reform efforts while contributing to regional stability.

In Ukraine, AFD is primarily working with local authorities to rebuild infrastructure decimated by the war, and to restore essential services like water and sanitation, urban transport, healthcare, and municipal facilities. Expertise France has deployed a team of 80 employees, with French and European backing, to support reforms relating to the EU’s pre-accession process, particularly with regards to justice and financial governance, assistance for victims of the war, and preparations for reconstruction. Numerous French institutions are involved in these efforts including the Cour des Comptes (France's supreme independent audit institution) and the Ministry of Justice. For its part, Proparco is investing in innovative Ukrainian businesses to stimulate the economy despite the ongoing war.

In Moldova, AFD Group is now the leading partner in implementing the EU’s growth plan for the country by financing critical infrastructure, as well as by supporting anti-corruption measures and the hosting of Ukrainian refugees through the NGO Solidarités International.

AFD Group’s work in these countries remains fully aligned with the European Union’s priorities. The Group is applying its three core areas of expertise – public sector financing, private investment, and technical cooperation – to help implement the Global Gateway strategy which invests in sustainable development projects, focusing on the green transition in particular.

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AFD Group’s activities in Algeria reflect renewed cooperation between France and Algeria and support the development of a sustainable, inclusive, and low-carbon economy. Since 2005, no new loans have been granted to the Algerian government, which continues to make annual repayments on the loans previously taken out with AFD.

As elsewhere in the Mediterranean, AFD Group – through AFD, Expertise France, and Proparco – supports renewed cooperation between France and Algeria, helping advance their shared commitment to a sustainable, inclusive, and low-carbon economy.

AFD is currently supporting several projects in Algeria, mainly involving technical cooperation, as well as regional initiatives and projects implemented by civil society organizations.

The sums reported by the OECD under France’s Official Development Assistance (ODA) to Algeria do not reflect the financing granted by AFD to the Algerian government. Since 2005, no new loans have been granted to the Algerian government, which continues to repay, each year, the loans previously taken out with AFD. Several of the projects currently being implemented in the country are funded by the European Union.

AFD Group’s projects are focused on four key priorities: strengthening human capital, namely by supporting public finances, as well as research and innovation; promoting the energy and low-carbon transitions; diversifying the country’s economy, particularly through the development of the blue and circular economies; and protecting ecosystems.

AFD Group’s initiatives are helping to reduce Algeria’s dependence on fossil fuels, create sustainable employment and promote more balanced and effective regional development across the country.

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Tackling climate change abroad also means protecting people in France, as well as the country’s territories, public health, agriculture, and infrastructure.

The effects of climate change have a direct impact on populations and economics on a global scale. Drought, floods, rising sea levels, soil degradation, and water scarcity pose a major threat to infrastructure, agriculture, health, and the economy.

That is why AFD finances projects to reduce carbon emissions, protect ecosystems, and help communities adapt to changes that are already under way. Its work encompasses public transport, energy, water resource management, forest conservation, climate-resilient infrastructure, and disaster risk reduction.

This work is aligned with France’s climate commitments, the Paris Agreement in particular. It also directly benefits French citizens: limiting the worsening effects of climate change helps to protect health, agriculture, coastlines, infrastructure, and France’s overseas territories, which are particularly vulnerable.

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Reducing gender inequality is about increasing access to employment, finance, and essential services. These actions help drive economic growth.

Gender inequalities limit part of the population’s access to education, employment, finance, healthcare, and property ownership. They serve as a barrier to economic development, reduce the potential for growth, and can exacerbate poverty and violence.

Gender mainstreaming is therefore a mandatory requirement for organizations involved in implementing France’s development policy. In practice, this includes facilitating women’s access to loans and job opportunities, making public transport safer, improving access to healthcare, supporting girls’ education, or implementing measures to prevent gender-based violence.

The aim is to ensure that the project genuinely benefits the entire population. Improving women’s access to employment, entrepreneurship, and financial services also helps drive growth and economic development.

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Sustainable development requires effective public services, robust institutions, and professional skills. This is why AFD employs a combination of public sector financing, private investment, and technical cooperation.

Sustainable development is not just about building infrastructure and stimulating economic growth. Countries also need healthcare systems equipped to deal with crises, high-quality education to train future generations, and public institutions that can provide essential services, manage public finances, and implement public policy.

Investing in these sectors can bring about real improvements in people’s living conditions, increase global stability, and prevent crises which could ultimately affect France, from pandemics to conflicts or forced migrations.

AFD Group deploys a range of complementary tools and services to address these challenges: AFD finances public sector investment and projects led by civil society organizations; Proparco supports development in the private sector; and Expertise France provides technical expertise to strengthen sustainable public policy in partner countries. This complementary strategy delivers lasting results.

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AFD-financed projects are subject to a stringent selection process. They must be aligned with the priorities of France and its partners, deliver tangible results, and demonstrate responsible use of public resources before being approved, in compliance with the Group’s rules of governance.

Every project supported by AFD Group must meet three essential requirements: 

• Lasting impact for partners: delivering tangible benefits for communities, countries, and the environment.
• Contribution to shared interests: addressing our partners’ development priorities, while aligning with the priorities of France and Europe.
• A sustainable operating model: deploying our resources responsibly to ensure the long-term viability of our initiatives. 

Each project must therefore address a need identified in collaboration with the partner involved, and be aligned with France’s priorities. It is then assessed according to various criteria: its added value, technical feasibility, costs, financing structure, the project owner’s capacity to carry out the work, and its deliverables.

Before making a final decision, AFD also assesses the risks involved: environmental and social impact, long-term financial viability, legal issues, partner integrity, and procurement arrangements.

The relevant body then decides whether to approve financing in accordance with AFD Group’s governance rules. This decision may be subject to conditions that the project team must meet before the first disbursement is paid or during the implementation phase.

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To ensure that its actions are effective, AFD has reinforced its approach to measuring the tangible results and impacts of all its projects. It carries out a review of every completed project and performs a detailed evaluation of around half of all projects.

Before financing a project, AFD defines objectives, expected development outcomes and measurable indicators that are used to verify its performance. During the implementation phase, AFD monitors the project’s progress, its outcome indicators, expenditure, and any issues that may arise with the partner. Upon completion, an internal review is systematically carried out for every project, covering the resources used, the outcomes, and the results achieved.

AFD Group is continuously improving its process for monitoring project results and impacts across all sectors using indicators that objectively assess the final deliverables. Around 50% of completed projects are also subject to an in-depth, independent evaluation. In 2023 and 2024, over 250 projects were evaluated in this manner. Most of these evaluations are conducted by external consulting firms or by experts who were not involved in the project’s implementation. 

The findings and lessons learned from these evaluations are used to inform and improve future projects, maximize the impact of the financial resources mobilized, and check that these resources have delivered the expected outcomes. Evaluation reports are also published online on the AFD website.

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Evaluating impact and results goes beyond the amount of financing and the facilities built, to determine whether the project has managed to bring about real and lasting change for people.

A project is deemed successful when it has met all or a significant majority of the objectives set at the start and when it has achieved sustainable results. Simply building infrastructure is not enough: there needs to be proof that it is being used and maintained, and that it has actually improved the services provided and people’s living conditions.

Performance indicators vary depending on the project. For example, some indicators may assess the following: the number of people who have been connected to a water supply or who now have access to better healthcare, the number of passengers using public transport, the number of jobs created, improvements made to farms, carbon emissions avoided, the increase in revenue of a local authority, or broader access to loans.

Evaluations also take account of unintended outcomes, whether positive or negative. They may conclude that a project has fully or only partially met its objectives, or that certain initial assumptions need to be revised.

AFD measures, monitors and collects data on results and impact to gain greater insight into the real-world outcomes achieved through its financing and to improve future projects. This approach also ensures greater transparency into how public funds are used. These findings and associated explanations are available via our Impact Portal.

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AFD does more than simply finance projects: it monitors their implementation and how funds are being used, and may take action if the results or financing terms are not met. At the end of each project, a review is carried out to measure its results and impact.

Once a project has been launched, a monitoring and evaluation system is put in place by the project owner to help them manage its implementation.

AFD’s teams monitor progress based on reports submitted by project owners, on-site visits, and technical and financial audits conducted by external consultants. In particular, the Group audits projects to ensure that project accounts are properly managed and that funds are used in accordance with the terms of the financing agreement.

Issues may arise during the project’s implementation, such as delays, cost overruns, policy changes, technical problems, or the partner’s inability to carry out the work. In such cases, AFD may request an action plan, revise the project schedule, provide additional support, or restructure certain activities to ensure the objectives are achieved. 

If the financing terms are not met, disbursements may be put on hold. In the most serious cases, financing may be withdrawn in accordance with the clauses set out in the agreement.

Where necessary, projects are evaluated during the implementation phase (known as mid-term or interim evaluations) or upon their completion. The aim is to identify the reasons for any deviations and to learn lessons from them. Identifying and documenting project issues is part of a development institution’s responsibility.

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Between 2020 and 2025, one in two projects financed by AFD Group involved a French company, generating nearly €12 billion in direct economic spin-offs for French businesses. These projects support the international expansion of French companies and help promote France’s expertise in strategic sectors. The economic benefits go far beyond the contracts themselves, as the projects financed help to improve the general business climate, while providing a platform for French companies to showcase their expertise.

Yes. Projects financed by AFD Group help to promote French expertise around the world and generate substantial economic spin-offs for French companies.

Between 2020 and 2025, one in two AFD-financed projects (49%) involved a French company. The other half is split between local companies (26%), international companies (15%) and European companies (10%).

Over this period, AFD Group financing generated nearly €12 billion in direct economic spin-offs for French companies. These contracts are primarily awarded in sectors where France has renowned expertise, such as engineering, transport, water, energy, digital technology, healthcare, and services.

Since 2019, Engie has been working to develop two wind farms and four solar power plants in Mexico. In Uganda, Sogea-Satom and Suez are currently renovating the drinking water supply network.

Besides contracts that are awarded directly, the Group’s financing creates long-term economic opportunities for French companies. By helping to improve public governance, the business environment, and regulatory frameworks in partner countries, AFD Group helps create the conditions for stable investment and stronger economic ties.

AFD-financed projects also help French companies gain a foothold in new markets. Successfully completing an initial flagship project financed by AFD Group can often open the doors to securing future contracts, including those unrelated to development assistance.

However, contracts are not automatically awarded to French companies. France applies the principle of Untied Aid, and calls for tender are awarded in accordance with the applicable procurement regulations, as part of a competitive and transparent process. It is therefore important to help French businesses – particularly SMEs and mid-cap companies – to fully understand the project requirements and submit competitive bids aligned with partners’ needs.