South Asia Regional Office

The South Asia Regional Directorate covers four countries in the region: Bangladesh, India, Pakistan, and Sri Lanka.

These countries face shared challenges, including high vulnerability to climate change, complex resource and land management issues, and persistent inequalities, particularly across territories and between women and men. The economic and health crisis triggered by Covid-19 has also reversed many of the gains made in reducing poverty and inequality.

To respond, the AFD Group operates within a framework that is fully aligned with the Sustainable Development Goals, supporting sustainable pathways for countries, partners, and projects across the region. In this approach, AFD structures its financing around the principles of “do no harm,” maximizing transformational impact, and strengthening synergies between the environmental, social, and institutional dimensions of its action.

Climate action lies at the core of AFD’s strategy in South Asia. Between 2020 and 2024, 79% of commitments in the region included a climate co-benefit, while 68% of commitments in 2023–2024 included a co-benefit for gender equality.

The current portfolio in South Asia focuses on sustainable urban development, clean energy, low-carbon mobility, access to safe drinking water and sanitation, and biodiversity protection.

Through these efforts, the AFD Group contributes to France’s Indo-Pacific Strategy, promoting global public goods, an inclusive approach, and sustainable cooperation among the countries of the region.

In South Asia, the Group is committed to maximizing positive climate impacts across all its operations and devotes a significant portion of its activity to supporting its partners towards low-carbon and resilient pathways. Decarbonizing the energy sector and improving energy efficiency are indeed major challenges in a region that still relies heavily on fossil fuels to fuel its growth.

In the South Asia region, AFD draws on its urban development expertise and French know-how to promote smart and resilient infrastructure and low-carbon mobility solutions that help reduce urban congestion and associated pollution, particularly air pollution, for the benefit of local populations.

AFD’s action also extends to rural areas, aiming to better integrate them into the national economy by improving connectivity and developing basic services. The agency further supports agricultural zones by promoting sustainable natural resource management practices and enhancing their resilience to the impacts of climate change.

The AFD Group pays special attention to water and soil management, combating deforestation, and protecting biodiversity. It supports the creation and management of protected forest, coastal, and marine areas, and promotes the development of a blue economy, fostering competitive and resilient sectors.

AFD's work contributes to improving people's access to essential services: drinking water and sanitation networks, electricity, healthcare, telecommunications, and financial services.

Another major objective is gender equality: the Group intends to increase the share of financing dedicated to reducing gender inequalities. The South Asia Regional Office has developed an action plan dedicated to this issue to more accurately identify local challenges and propose appropriate operational responses.

Finally, AFD Group encourages the creation of economic opportunities, particularly in promising or innovative sectors (blue economy, sustainable tourism, cultural and creative industries, digital technology, etc.), supporting entrepreneurship, and developing skills to promote the employability of populations, particularly women and young people.

To achieve these objectives, the AFD Group relies on a range of financial instruments designed for both public and private partners, including sovereign loans (which make up the majority of AFD’s financing in the region), grants (smaller-scale funding often delegated to AFD by partners, primarily the European Union), as well as non-sovereign loans and guarantees (through Proparco).

AFD provides financing either through direct project funding or credit lines, often within partnership-based and co-financing frameworks.

In addition to its financial tools, technical assistance is frequently mobilized (notably through Expertise France) to support project implementation and strengthen institutional capacities.