5 questions about AFD Group’s activities

No. AFD is a public bank that primarily finances its lending by borrowing on financial markets. In 2025, AFD Group raised €8.2 billion through bond issues.

Around 90% of the Group’s activity takes the form of loans, which are repaid by the recipient governments, local authorities, companies, or financial institutions. Grants account for around 10% of activity and, in line with France’s international commitments, are primarily focused on the most vulnerable countries, crisis situations, and projects led by civil society organizations. Ultimately, all these investments serve global interests, including tackling climate change, protecting biodiversity, public health, education, and food security.

In 2025, the French government committed €1.5 billion in resources to AFD Group, compared with €13.7 billion in total Group commitments. The European Union and other partners also delegated €500 million in funding to the Group. 

AFD’s financial model enables it to cover its operating costs and generate a profit. In 2025, AFD Group’s net income amounted to €417 million. Of this amount, 25%, or just over €104 million, was returned to the French government in 2026.

Between 2020 and 2025, 49% of projects financed by AFD benefited a French company. The remainder was divided among local companies (26%), other foreign companies (15%), and European companies (10%). Contracts supported by the Group therefore generated nearly €12 billion in direct economic benefits for French companies over the same period.

These economic benefits extend beyond contracts awarded. Projects financed by AFD also help improve the business environment and provide international exposure. They therefore contribute to France’s international reach and help showcase French expertise in sectors where the country has recognized strengths.

AFD Group does not “give” money to major emerging economies. In these countries, its financing primarily takes the form of repayable loans, granted according to the borrower’s debt capacity and, in most cases, on terms close to market conditions.

This financing focuses in particular on climate, biodiversity, transport, energy, and the sustainable management of resources. Decisions made by countries such as India, Brazil, and Türkiye have global consequences, including for France, given their economic, demographic, and environmental weight. These operations also help develop scientific, technical, and economic cooperation with strategic partners.

In China, AFD has provided loans on market terms, with no interest-rate subsidy, mainly for projects related to climate and biodiversity. Since 2021, France has no longer counted financing in China as Official Development Assistance (ODA). In line with guidelines set by the French government, AFD is gradually ending new financing in China.

No. France’s overseas territories are part of AFD Group’s statutory mandate, with the Group acting as a sustainable development bank in these territories. It supports local authorities, public institutions, companies, and financial institutions in making investments that benefit residents.

In 2025, AFD financed 163 projects across 12 French overseas territories and departments, totaling €1.7 billion. This exceptionally high level of financing included, for example, a French government-guaranteed loan of €800 million to New Caledonia.

In these territories, AFD Group finances housing, health facilities, water and sanitation, transport, the energy transition, and climate change adaptation, among other areas. In 2025, 39% of the projects financed in the French overseas territories generated climate co-benefits.

The Group also promotes regional cooperation between French territories and their neighbors, including in health, oceans, biodiversity, and natural disaster prevention.

Ensuring that invested funds genuinely benefit their intended recipients is essential. Funds are not systematically paid into a government’s general budget. Depending on the project, the recipient may be a local authority, public institution, bank, company, or civil society organization.

AFD Group has a multi-level control system to address the risks of corruption, fraud, money laundering, terrorist financing, and anticompetitive practices that could affect its activities or operations. This system has three components:

1. Projects are designed with clients and partners, including NGOs, companies, and local authorities, to define objectives that reflect people’s actual needs.
2. Rigorous fiduciary management is applied across projects, based on audits, financial controls, and anti-corruption mechanisms.
3. Projects are monitored throughout implementation, with regular reports from project owners and specialist consultants, as well as supervision missions carried out on the ground by AFD’s local teams. Independent evaluations are also conducted.

Funds may be disbursed in several stages and made conditional on project progress, the submission of supporting documentation, or compliance with specific commitments.

During implementation, AFD teams monitor both technical and financial performance. Audits, document reviews, on-site inspections, and supervision missions may be conducted. Contracts financed by AFD must also comply with procurement, competition, and integrity rules.

AFD applies procedures to prevent fraud, corruption, money laundering, and terrorist financing. If irregularities occur or commitments are not met, disbursements may be suspended, corrective measures may be required, and, in the most serious cases, financing may be terminated.

A complaints mechanism also allows individuals or organizations that believe they have been adversely affected by an AFD-financed project to report a problem.

Yes. AFD operates within a governance and oversight framework involving the French government, Parliament, and several independent authorities.

Its Board of Directors includes representatives of the French government, qualified experts, employee representatives, and four members of Parliament. In 2025, 64 hearings and interviews were conducted with parliamentarians, while AFD Group’s governance bodies met 63 times.

AFD is also subject to oversight by the French Court of Accounts, inspectorates general, statutory auditors, and the French Prudential Supervision and Resolution Authority. The Commission for the Evaluation of Official Development Assistance, established under the 2021 law and comprising 10 experts and four members of Parliament, was formally established in December 2025.

Every completed project undergoes an internal review, and around half of all projects are subject to a more in-depth evaluation. The 2025 Evaluation Report covers 261 projects evaluated in 2023 and 2024. More than 450 evaluation summaries are freely available, along with more than 110 broader-scope evaluation reports published on AFD’s website.

Since 2025, the Group’s results monitoring framework has been structured around 22 common indicators, available through the Impact Portal. For operations completed in 2025, 4.8 million people benefited from newly created or significantly improved education, training, or employment services; 2.1 million gained improved access to sustainable transport; and 3.2 million received support that strengthened their resilience to crises and conflicts.