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Armenia
Present in Armenia since 2013, AFD Group finances and accelerates transitions toward a more just and sustainable future. It supports projects to address climate change and social inequalities through French and European loans and grants.
Its financing benefits the state, public banks, and civil society in key sectors such as water resource management for agriculture, energy efficiency, and public finance management.
Proparco supports the private sector – banks, microfinance, infrastructure projects, and small and medium-sized enterprises – while Expertise France provides technical assistance to strengthen Armenian public policies in many areas.
Context
A small country of three million people in South Caucasus, Armenia has faced many economic, climatic and social challenges since its independence in 1991.
The Armenian government is committed to implementing a reform plan that addresses the country’s structural weaknesses. With the support of international donors, it is meeting major challenges: support energy independence, strengthen the country’s resilience and connectivity, fight poverty, improve agricultural productivity, modernize infrastructure, optimize the business climate and fight climate change.
The AFD group has been operating in Armenia since 2013 under a “green and solidarity-driven growth” mandate. AFD finances development projects through loans and grants, including grants delegated by the European Union. It is mainly active in the sectors of irrigation, rural development and energy efficiency, and supports public policy reforms, particularly in the area of public finance management. Proparco, a subsidiary dedicated to the private sector, supports the Armenian financial sector targeting SMEs and farmers as well as manufacturing and agri-food companies through lines of credit and loans. Expertise France, the Group’s technical cooperation agency, works with Armenia for a better governance framework.
AFD's South Caucasus Regional Office is attached to the Eurasia Regional Directorate.
Our approach
AFD and Armenia: promoting green and solidarity-driven growth
AFD granted a €75 million loan in 2015 to finance construction of the Vedi reservoir in the Ararat plain to secure water resources and improve agricultural productivity.
A complementary €10 million EU grant finances technical assistance supporting irrigated agriculture in the Ararat and Armavir regions (more than 3,000 hectares).
AFD extended its commitment with a new program that supports both integrated development of the Syunik territory and national improvement of irrigation infrastructure and drinking water access, in partnership with the World Bank.
At the regional level, Expertise France implements the EU4Green Recovery project, which supports circular economy promotion and water resource protection in Armenia and several neighboring countries.
Since 2016, Agence Française de Développement (AFD) has supported improvements to Armenia's governance framework and public finance management through several budget support programs totaling €215 million, working with our partner the Asian Development Bank, which provides additional funding.
The supported reforms contribute to the effectiveness and sustainability of public services, financial sector development and the transition to a green economy.
AFD also mobilizes French grants to support the Armenian government in implementing reforms, deployed by Expertise France since 2015.
Under this framework, Expertise France implements the Green P2FT project to integrate climate issues into public budgets, strengthen sustainable finance and support reform of Armenia's financial sector.
AFD also supports reform of public investment management within the Ministry of Territorial Administration and Infrastructure.
Finally, Expertise France, through its International Technical Experts, supports authorities in major reforms ranging from infrastructure modernization and connectivity to education and health.
Without insulation standards and facing harsh winters, low-income Armenian households spend a significant portion of their budget on energy.
The most vulnerable don't have access to credit to finance improvement work. Since 2013, AFD has supported the National Mortgage Company (NMC) with credit lines and a green bond issue to encourage commercial banks to finance energy renovation for households and small and medium enterprises.
Grants, particularly from Europe, have strengthened its expertise in residential energy efficiency.
Proparco supports the financial sector in Armenia through the country's main banks and microfinance institutions, which provide funding to farmers and rural small and medium enterprises.
Proparco became a shareholder in ACBA Bank in late 2024, holding 10% of the credit institution's capital.
In parallel, Expertise France supports economic development through innovation, particularly through the regional EU4Innovation East project, which supports the startup ecosystem and innovative entrepreneurship in Armenia.
AFD supports partnerships between French and Armenian local authorities and civil society organizations for inclusive development.
A FICOL grant (€1 million) funds a project in Yerevan on waste management, mobility and urban planning.
AFD also supports four civil society organization projects (€2.4 million) with three objectives:
• Improving obstetric and gynecological care (UGAB, ASF),
• Developing ecotourism (AFRAT),
• Supporting displaced people from Nagorno-Karabakh (La Guilde) through social support and assistance to local associations.
In the field
Below, find the country's projects, news, publications, and contact details in one click.
News & Press Releases
Publications & Media
Key figures
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670 million euros in loans since 2013
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15 million euros in grants since 2013
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29 million euros in technical support and grants
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50 million euros of support to the private sector