Peru

Peru has one of the best performing economies in South America. However, the country faces record urban growth and high vulnerability to climate change. Since 2014, AFD has been assisting it in achieving the social and ecological transition of cities and better meeting people’s needs.
  • logo linkedin
  • logo email
Peru, Cuzco, main square, city
AFD AND PERU: ADDRESSING THE CHALLENGE OF URBANIZATION AND ADAPTING TO CLIMATE CHANGE
Peru, Cuzco, main square, city

Promoting sustainable cities

Peru, subway, metro, line 1, Lima

Promoting sustainable cities

For thirty years or so, Peru has been faced with fast-paced urbanization. Cities need to rapidly meet the infrastructure needs of new residents.
AFD operates in three priority sectors: access to drinking water, transport and housing.

Accessible and high-quality water 

Access to water is the priority for the Peruvian Government. This is especially because there are strong territorial inequalities: while the desert coast, and particularly the capital Lima, is faced with a shortage, the high rainfall areas of the Andes and Amazonia do not have the infrastructure required to use rainwater.
AFD is helping the Peruvian authorities achieve their 2021 objective: access to drinking water for all. For example, we are upgrading distribution networks, increasing the efficiency of public services and improving natural disaster management, following the recent floods and mudslides which have badly affected coastal cities.

More environmentally friendly transport 

In the transport sector, AFD focuses on low-carbon mobility, meaning with low CO2 and particulate pollutant emissions.
We are planning to finance the construction of the new metro in Lima. It will provide over 30,000 residents in outlying neighborhoods with daily access to the city center. We also provide technical cooperation with the main cities to support their public policies for sustainable mobility. 

Sustainable housing for all

There is currently a shortage of 1.8 million housing units nationwide, including 900,000 in the capital. Cities see new neighborhoods springing up on their outskirts, which are informally built and often without access to basic services. Some 8 million people live in these neighborhoods.

AFD is supporting Fondo MiVivienda (FMV), a public financial institution which finances social housing. Together, we have developed a new tool called “My Sustainable Housing” (Bono MiVivienda Sostenible), which aims to sell housing with a “green” certification at the same price as traditional housing.

Developing more sustainable and equitable agriculture

Peru, agricultural fields

DEVELOPING MORE SUSTAINABLE AND EQUITABLE AGRICULTURE

In 2016, agriculture accounted for 9% of GDP and 10% of exports, a major contribution to Peru’s economy. However, farmers and their families continue to face poverty and inequalities persist between urban and rural populations. In addition, agriculture in the broad sense and changes in land use account for some 60% of the country’s greenhouse gas emissions and are one of the main causes of deforestation.

In partnership with Agrobanco, the Peruvian State’s public bank for the development of the agricultural sector, AFD is financing the investments of small producers and agricultural cooperatives. Our main thrust: promote efficient agriculture combining respect for the environment and social improvement.

Promoting academic research and innovation

Dominican Republic, student

PROMOTING ACADEMIC RESEARCH AND INNOVATION

Research is the poor relation in Peru’s education system. The country trains few engineers and researchers due to the lack of appropriate university facilities.

AFD is looking into the possibility of working with Pontificia Universidad Católica del Perú (PUCP), a private non-profit institution, which is building the country’s first science and technology park. It will focus on state-of-the-art technologies and sustainable natural resources management.

Supporting the action of CSOs

Peru, woman, agriculture

SUPPORTING THE ACTION OF CSOs

French CSOs are very active in Peru and work at grassroots level with inhabitants.

To strengthen their action, AFD is supporting:

  • The International Catholic Childhood Bureau and its “No Kids Behind Bars” program. The objective: promote a legal structure for the reintegration of children in conflict with the law;
  • Agronomes & Vétérinaires sans frontières and its “Agroecological transitions and sustainable food in rural areas and cities” program to strengthen smallholdings and promote agroecology;
  • CCFD-Terre Solidaire, to get rural communities out of poverty in the high Andes of Junin and Huancavelica via agriculture;
  • Médecins du Monde, to improve the prevention and management of unwanted pregnancies;
  • L'Agence Micro Projets, to improve living conditions in a slum in Northern Lima by building a community recreational space (participatory construction of a skating and volleyball area and a garden) in Puente Piedra (La Ensenada);
  • Frères des Hommes, to support 1,000 women faced with domestic violence in the district of San Juan de Lurigancho. With AFD’s support, the CSO teaches them a trade (textiles, baking, engraving, weaving) and subsequently helps them get organized socially and economically.
313
million euros committed since 2014
8,000
farmers with increased incomes
1,300
households benefit from a subsidy to buy “green” social housing
Interactive map
This map is for illustrative purposes only and does not engage the responsibility of the AFD Group
Launch search
See map of all projects

Downloads

Institutional document

Andean Region - 2020-2024 Regional Strategy

This document presents the strategy of the Regional Office (RO) of the Andean Region (Bolivia, Colom

...
May 2021
Filmed evaluation

Diverting Solid Waste

This work takes as its starting point the findings of local authorities in the global South: as and

...
Oct 2020
Research document

Peru: in need of fresh stimulus

Driven by the boom in its mining sector and its rigorous macroeconomic policies, since the early 200

...
Oct 2023
Research document

Teacher Wages, the Recruitment of Talent, and Academic Achievement

This paper studies the effects of a large unconditional increase in the salary of public sector teac

...
Apr 2021
Research document

Diverting Solid Waste

This work takes as its starting point the findings of local authorities in the global South: as and

...
Oct 2020
Video

Peru: art to conserve the forest and the way of life

In Peru, the "Metis" project, through arts help to conserve forests, ecosystems, and ways of life thro

...
Jan 2022
View all publications

Contact

We would like to hear from you! Would you take a moment to fill out a short survey for us?