Latin America

In Latin America, AFD focuses on projects which combat climate change and inequalities. It has committed 8.7 billion euros in the region since 2009, and aims to increase financing to 2 billion euros per year by 2020.
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AFD and Latin America
Latin America, view on Medellin, Colombia

Prioritizing ecological, territorial and energy transitions

Curitiba, young people, Brazil, Latin America

Prioritizing ecological, territorial and energy transitions

In line with the Paris Agreement, AFD’s priority in Latin America is to finance policies and projects with ambitious climate objectives, both in terms of fighting climate change and adapting to its impacts. In the region, 70 % of annual financing commitments must have climate change co-benefits.

To achieve this goal, AFD provides budget support for public policies, as well as program loans and credit lines. The aim of this financing, together with technical and academic cooperation between French and Latin-American field actors, is to support national and regional strategies: energy transition, transition towards green taxation, integrated management and preservation of water resources, waste recycling, etc.

AFD also supports the structuring and financing of projects which contribute to making urban spaces more environmentally sustainable, while also fighting climate change and promoting the adaptability and resilience of societies. Examples include infrastructure (mobility projects such as trams, subways, clean buses, etc.), urban design, governance and management of local finances.

In Latin America, we also support the creation of protected areas, the preservation of biodiversity and natural resources, and the strengthening of links between agriculture and ecology.

Promoting social justice and fighting inequalities

young woman, Colombia, city, Latin America

Promoting social justice and fighting inequalities

There can be no ecological transition without cohesion and social justice. For this reason, projects funded by AFD also aim to reinforce social links by reducing inequalities, protecting human rights, providing access to quality public services (education, health, social protection, transport, etc.) and promoting civic engagement.

In order to develop local economic opportunities and facilitate socio-economic integration, AFD is also increasing its financial support to sectors where there is both the potential for high growth and the creation of decent green jobs.

In urban environments, ensuring economic and social inclusion is particularly important. The main objective of the urban development, planning and transport projects AFD finances is combatting discrimination, starting with gender discrimination.

This funding also aims to combat socio-spatial segregation by rehabilitating and improving access to vulnerable districts and encouraging citizen participation, both physical and digital, which is essential for the appropriation and sustainability of projects.

Fostering partnerships

sustainable cities, Curitiba, Brazil

Fostering partnerships

Partnerships with regional and local - but also French - field actors are at the very heart of AFD’s work in Latin America. These alliances, built on reciprocity and a shared long-term vision, have a vital role to play in ensuring the sustainability of our actions.

This is why AFD Group supports the ecosystem of French and Latin American technical, academic, scientific and technological cooperation fi eld actors who are working to achieve ecological, energy, social, territorial and citizens’ transitions on both sides of the Atlantic.

We closely work with large regional development banks such as the Inter-American Development Bank (IDB) and the Development Bank of Latin America (CAF), given their financial weight, historic presence, regional knowledge and close relationships with public authorities. These alliances are essential: In this way, the reputation and legitimacy of France with regard to bilateral or global issues can be combined with the influence of institutions who work closely with local governments.

projects financed by AFD from 2009 and 2018
billion euros committed by AFD and Proparco in 2018
of projects have a positive impact on the climate

Latin America is the most urbanized continent in the world. Consequently, issues related to sustainable cities, which combine urban development, social cohesion and environmental protection, are central to the action of national governments and local authorities. The climate challenge has been added to the programs which are already being implemented.

AFD operates in Latin America under a mandate for “green and inclusive growth”. This means that we assist our partners along a path of economic development which benefits vulnerable populations and is compatible with the protection of the environment and natural resources.

Our activity in the region is based on strong historical, linguistic and cultural ties, and leads to a regular political dialogue, as well as a number of technical and academic exchanges. We have close relations with local authorities and local development banks (national and regional).

We are today active in the entire region, with FFEM (French Facility for Global Environment), PROPARCO (our private sector financing arm) and the NGOs we finance.

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