French Development Agency

The French Development Agency (French: Agence française de développement, AFD), known from 1992 to 1998 as the Caisse Française de Développement (CFD, lit. 'French Development Fund'), is a public financial institution that implements France's development and international solidarity policies. It works to fight poverty and promote sustainable development. It is active in Africa, Asia, the Middle East, Latin America, the Caribbean, and the French overseas territories, where it finances and supports projects that improve living conditions for populations, promote economic growth and protect the planet.
In 2023, AFD earmarked €11.3 billion to finance projects in developing countries and the French overseas territories. This development assistance represented 0.55% of France's GDP in 2023. According to the OECD, France is in the global Top 5 for providers of official development assistance (ODA) in volume, with a strong focus on Africa.
AFD's headquarters is located in Paris. Its teams are based in Paris, Marseille, and in a network of 72 agencies and representations abroad and in the French overseas territories.
AFD's origins go back to the Caisse Centrale de la France Libre (CCFL), created by Charles de Gaulle on 2 December 1941 and successively renamed the Caisse Centrale de la France d'Outre-Mer (CCFOM) in February 1944 and the Caisse Centrale de Coopération Économique (CCCE) in 1958. By 1967, the CCCE had lost all the money-issuing duties that had been at the origin of the CCFL, but had expanded the development financing that the CCFOM had acquired in 1944.
In 1992, the CCCE was renamed the Caisse Française de Développement. With the reform of French development cooperation in 1998, the CFD became Agence Française de Développement.
In addition to a marked increase in its financing, between 2001 and 2010, there was a diversification in the financial instruments used by AFD: grants, of course, but also highly “concessional” loans or loans without interest subsidies, investment funds, guarantee funds and partnerships. AFD can provide loan recipients with liquidity to finance, at attractive rates – due to the AAA rating, the highest for long-term issuances, given to AFD by the international rating agencies –, their investment policies or programs when markets are unable to meet their needs.
In 2013, Anne Paugam took over from Dov Zerah as CEO. She is the first woman to head AFD. In 2014, The Act on Development and International Solidarity recognized the importance of the work conducted by AFD towards France's international commitments. In 2015, Gaël Giraud became AFD's Chief Economist. In 2016, Rémy Rioux took over as CEO from Anne Paugam.
As a specialized credit institution, AFD is subject to banking law, particularly in the field of risk sharing. AFD is a public financial institution. The Government has entrusted it with the role of the main operator for France's cooperation policy. It thereby combines the functions of development bank and implementing agency for France's Official Development Assistance policy.
AFD has a contract of objectives and policies with the state and implements the orientations defined by the Inter-ministerial Committee for International Cooperation and Development (CICID), chaired by the Prime Minister.
In overseas France, AFD conducts a policy, on behalf of the state, to support public authorities and finance the economy. This mandate was reaffirmed during the first Inter-ministerial Committee for Overseas France, chaired by the French president, which was held in November 2009.
Its board of directors comprises a chairperson and 16 members appointed by a decree, including 6 representatives of the State: Ministry of the Economy, Industry and Digital Affairs, Ministry of Foreign Affairs and International Development, Ministry of the Interior, Ministry of Overseas France.
The French Development Agency (AFD) implements the policy defined by the French Government. It works to combat poverty and promote sustainable development.
It achieves this by financing and supporting projects that improve living conditions for populations, promote economic growth and protect the planet.
In 2014, AFD allocated EUR 8.1bn to finance projects, including EUR 6.35bn in developing countries and EUR 1.55bn for overseas France.
In 2014, AFD allocated some EUR 767m to education and health and invested over EUR 633m in water and sanitation programs. Projects related to territorial development benefited from over EUR 4bn, i.e. almost half AFD's commitments, with projects in the energy, transport and telecommunications sectors in rural and urban areas. For 2014, the breakdown for commitments by sector is as follows:
AFD also operates in emerging countries for issues related to the protection of the environment and energy management.
In a crosscutting manner to these sectors, in 2014, AFD earmarked 53% of its international activity for the fight against climate change, i.e. EUR 2.8bn, which financed development projects that also have a positive impact on the climate.
AFD, via the projects it finances and several initiatives, is gearing up for the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC). For example, with the GoodPlanet Foundation, it is putting on a photo exhibition “60 SOLUTIONS Against Climate Change”, which presents concrete, innovative and effective initiatives in four sectors that combine climate change and economic development.,
AFD has been working for over sixty years to promote development in Southern countries and the French overseas territories. It is active in the field in over 90 countries, where it finances and supports projects that improve living conditions for populations, promote economic growth and protect the planet: getting children into school, assisting farmers, financing small businesses, water supply, tropical forest conservation, combating climate change... AFD's strategy is guided by sustainable development. Its operations are in line with the Millennium Development Goals, at the intersection of the objectives of economic growth, poverty reduction and environmental conservation.
A wide range of financial and technical instruments meet the different needs of countries: grants, guarantees, equity investments, subsidized loans, loans on market terms and technical assistance.
It develops financial and intellectual partnerships with other donors and contributes, in conjunction with its supervisory authorities, to public policymaking and to France's influence in the development sphere.
In Latin America and the Caribbean, AFD promotes sustainable and equitable development through green and inclusive growth. There are a number of projects to fight climate change, for urban development, as well as projects to promote social convergence.
Sub-Saharan Africa is the priority region for France's public development policy. In 2014, AFD invested EUR 2.95bn in the region, i.e. 36.5% of its total financing. Among the many projects, a number focus on promoting access to essential services, the growth of sustainable cities, the development of infrastructure, family farming and job-creating enterprises, as well as on the preservation of natural resources.
In Asia, AFD works to promote environmental and regional balances, with a focus on projects that limit the environmental footprint of cities or contribute to regional convergence.
AFD supports the region's political and economic transition, with a focus on promoting Euro-Mediterranean integration, territorial development and job creation. The AFD also funds restoration works, such as that of the Saint Hilarion monastery which the AFD funded in order to have the Byzantine-era site inscribed in the UNESCO World Heritage Sites list.
Since 1946, AFD has had a public service mandate to provide a reference public service provision for credit and social housing. In 2014, overseas France accounted for 19% of AFD's activity, i.e. EUR 1.55bn. AFD conducts several types of action in overseas France. Its activities are based on the following areas: financing and assisting public policies, advisory services for local authorities, promoting business competitiveness and job creation, supporting regional integration and action for sustainable development. This involves financing and supporting projects that improve living conditions for populations and promote economic growth, while preserving the environment. Thanks to its financing, its expertise and its knowledge production, it assists the local public sector, finances companies, housing and urban development, and supports regional cooperation.
It fulfills this mandate through nine agencies throughout the overseas territories: French Guiana, French Polynesia, Guadeloupe, Martinique, Mayotte, New Caledonia, Réunion, Saint Pierre and Miquelon, Wallis and Futuna.
In the overseas departments (DOM), in Saint Martin, Saint Barthélemy and Saint Pierre and Miquelon, AFD also represents the public investment bank Bpifrance, which finances the creation, innovation, investments and international development of French SMEs.
AFD is the reference shareholder in seven social housing companies (Simar in Martinique, Sic in New Caledonia, Sig in Guadeloupe, SIDR in Réunion, Siguy and Simko in French Guiana and Sim in Mayotte). These property companies promote, manage and build social housing.
Finally, it provides part of the staff of the note-issuing banks, Institut d'Emission d'Outre-mer and Institut d'Emission des Départements d'Outre-mer.
Knowledge production is a major activity for AFD and aims to contribute to the definition of the public policies of France and its partners. It has become an essential complement to the financial and technical tools. AFD's knowledge production started to play an important role in the 2000s. This drive for knowledge production is based on the organization of seminars and conferences, training given by CEFEB, a studies and research program, and the establishment of partnerships with academic and research institutes.
AFD also offers a number of publications on developing countries and the French overseas territories:
All this contributes to improving knowledge of the Official Development Assistance policy: “its rationale, its effectiveness, its interactions with the other public policies, its role in the management of globalization” AFD's aim is to become an internationally recognized research center, both in terms of sustainable development and global public goods, and the design of innovative financing instruments.
PROPARCO is an AFD subsidiary set up in 1977. It is a development finance institution with a mandate to promote private investments for growth, sustainable development and the achievement of the Millennium Development Goals (MDGs) in emerging and developing countries. It provides financing tailored to the specific needs of investors in the productive sector, financial systems, infrastructure and private equity.
PROPARCO is jointly held by AFD (59.04%) and private shareholders from the North and South.
The Center for Economic and Banking Studies (CEFEB) is AFD's training institute. It is based in Marseille and offers training for partners from the South in order to contribute to building their capacities. It also acts as a platform for the dissemination of AFD's expertise towards its partners.
AFD handles the secretariat and financial management of the French Facility for Global Environment (FFEM), a bilateral public fund set up by the French Government in 1994. It is a financial instrument for France's cooperation and development policy dedicated to environmental protection and sustainable development.
It is coordinated by five ministries (Economy and Finance, Foreign Affairs, Sustainable Development, Research, Agriculture) and AFD.
In 2007, AFD was called into question for its support for French companies suspected of contributing to deforestation in Central Africa. However, no legal proceedings were brought against AFD.
AFD has strict procedures during project appraisal for impact control and measurement in terms of social and environmental responsibility. It has provided EUR 900,000 of financing to the Central Africa Forest Commission (COMIFAC), which is responsible for guiding, coordinating, harmonizing and taking decisions in terms of the conservation and sustainable management of forest ecosystems. Mr. Joyandet, French Secretary of State for Cooperation and Francophonie from March 2008 to July 2010, criticized the Chief Executive Officer at the time, Mr. Severino, for AFD's emergency-oriented approach, without a long term-vision and a certain lack of scope. However, the Minister's remarks did not gain wide consensus among the development community.
According to the Cameroon National Anti-corruption Commission (CONAC), two front companies, including one controlled by AFD, have been suspected of fraud. In December 2013, CONAC presented its 2012 activity report in Yaoundé, indicating that over CFA 113bn had been misappropriated from the cotton development company (SODECOTON) between 2002 and 2011.
In December 2021, created under the name Caisse centrale de la France libre in 1941, the public financial institution could change its name again in the coming months, 80 years after its launch. Or a project in the process of reflection, which also includes an overhaul of its operation and its development policy, which "appear unsuitable in relation to our experience", according to its director Rémy Rioux.