AFD has been supporting Laos in its sustainable development for over 25 years. It finances projects implemented by public authorities, civil society or the private sector, mainly in the agriculture, rural development, biodiversity, heritage protection and development and justice sectors.
Supporting rural and agricultural development
Supporting the NGO network
Supporting the justice sector
Our other activities
Laos has made considerable progress in development over the last two decades, reducing poverty by more than half between 1993 and 2019 while at the same time GDP grew by an average of 7.3% per year, reducing malnutrition and improving education and health outcomes. However, the country is still classified as a Least Developed Country (LDC).
Nevertheless, Lao PDR has assets: important mineral, forestry and hydroelectric resources, low agricultural production but very characteristic agricultural land and a political will to distinguish itself by the quality of its products. In order to further reduce poverty and boost prosperity, the country will need to implement reforms to support greener and more inclusive growth, diversify income sources and encourage private sector participation while managing its vulnerabilities to the effects of climate change.
AFD has been active in the country since 1994. The high level of public debt (70.9% in 2020) limits AFD's intervention to financing in the form of grants exclusively.