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The project cycle at AFD
Identification, Instruction, Contractualization, Implementation, and Completion constitute the five main stages in the lifecycle of a project financed by AFD.
AFD places particular emphasis on several key factors to ensure the success of the projects it finances and the effectiveness of its funding:
- Strategic vision: the project must be part of a development strategy with clearly defined objectives set by the beneficiary. The project’s financing must also align with AFD’s intervention strategy in the relevant country and sector, which takes into account France’s comparative advantages, the involvement of other financial backers, and other contextual elements.
- Local ownership: the funding beneficiary is responsible for leading the project from start to finish, from its initial design through to its completion.
- Ongoing dialogue between the beneficiary and AFD: sustained engagement throughout the process enables the sharing of expertise gained in other contexts and contributes to strengthening local capacities, a cornerstone of any development effort. This dialogue also helps ensure proper use of funds by assessing the project’s economic relevance and financial viability, ensuring positive or well-managed social and environmental impacts, and monitoring payments to companies.
Identification
The project sponsor submits the funding request to AFD’s local office, which reviews it to ensure compliance with AFD’s sectoral and geographic strategies, as well as with the operational rules of financial institutions.
Instruction
A feasibility study is then carried out by a consulting firm. If the results are favorable, an assessment is conducted to verify the project’s technical, economic, organizational, and financial soundness. It is at this stage that the financing plan is developed.
Contractualization
It is at this stage that the financing plan is developed. Service providers are selected through a call for tenders, the compliance of which is verified by AFD.
Implementation
AFD regularly monitors project implementation, resulting in disbursements carried out through a tightly controlled payment process.
Completion
Finally, a completion report is prepared, followed by a final evaluation phase that contributes to the feedback and learning process.
The project cycle in video format
Here are the preliminary steps to receive support and enter AFD’s project cycle.
Funding requests are submitted by local project sponsors to AFD’s local agencies, which identify the projects and verify their alignment with AFD’s sectoral and geographic strategies, as well as with the operational rules of financial institutions.
