AFD annual results 2018: +€1 billion for Africa, climate and gender equality

On 10 April 2019, Rémy Rioux, Chief Executive Officer of Agence Française de Développement (AFD), presented the Group’s 2018 results, up €1 billion on the previous year. In this dynamic context for inclusive investment, AFD is enhancing the evaluation of its action.

Upholding its commitments and accountability are the two requirements that have guided AFD’s action in 2018. At €11.4 billion, the commitments of AFD are up €1 billion in a year (40% in 3 years). In practical terms, this represents 846 new development projects launched, 94 more than in 2017, while the resources devoted to climate change adaptation projects have doubled compared to 2017. Half of the Group’s total commitments are dedicated to Africa and by 2022, 10,000 African businesses and start-ups will have received support, thanks to €2.5 billion in aid via the Choose Africa initiative.

In 2018, the projects supported by AFD enabled the following achievements in particular:

• Schooling for 463,000 girls
• Improved access to healthcare for 14 million people
• Permanent access to drinking water for 826,000 people
• Improved access to electricity for 7 million people
• The protection or restoration of 50,000km2 of green spaces
• Funding or support for 60,000 SMEs

Five commitments upheld, concrete progress

This presentation provided an opportunity to report on the first results of the Group strategy adopted for the period 2018-2022, based on five commitments to contribute to achieving the Sustainable Development Goals.

Planet: AFD 100% Paris Agreement

The commitment: To protect the planet from climate change and the decline in biodiversity, all AFD funding must be compatible with low-carbon development and resilience within the meaning of the Paris Agreement.

Progress:  In addition to this, in October 2018, AFD launched an ambitious programme entitled “Transforming Financial Systems for Climate”. This programme aims to boost the local re-direction of investment flows towards low-emission and climate-resistant development. The programme represents a total amount of over $750 million, in partnership with the Green Climate Fund which approved a $280 million contribution. This is one of the biggest financial contributions by the Green Climate Fund since it was created in 2015.

Populations: AFD 100% social ties

The commitment: All AFD funding must contribute to strengthening social ties, by fighting against inequality and for the well-being of populations, by boosting cohesion between regions and by promoting access to education and real gender equality.

Progress: Following Burkina Faso, in 2018 AFD mobilised new delegated funds from the Global Partnership to support education projects in Senegal, Guinea, Niger and Burundi. The Group is also developing new projects to promote gender issues, sport and youth access to the media, in particular in the Sahel region.

Peace: 3D Development: Defence, Development & Diplomacy

The commitment: To roll out a ‘3D vision’ based on the prevention of conflict in fragile and crisis situations, in synergy with the action of diplomats and armed forces.

Progress: More than €2 billion committed to the Sahel region since 2013 and reinforced coordination in vulnerable areas with 12 other donors within the Sahel Alliance, in partnership with the G5 Sahel. Actions led in close contact with local populations: a vocational integration project with young people in Gao, healthcare in Ménaka and a water supply project in Mopti, etc.

Prosperity: non-sovereign projects the priority

The commitment: All the stakeholders in society must direct their investments towards the achievement of the Sustainable Development Goals. This means funding non-sovereign players such as local authorities, the private and financial sector, or community organisations.

Progress: With the Choose Africa initiative, AFD Group, via Proparco, its subsidiary devoted to the private sector, is beefing up its support for entrepreneurship and innovation in Africa, at the service of start-ups and SMEs. By 2022, €2.5 billion will be allocated to funding and support for 10,000 small businesses and start-ups in Africa, including €1.5 billion in loans and guarantees and €1bn for direct investments in particular. At the same time, AFD is supporting the African entrepreneurial ecosystem with the Digital Africa platform, presented during Emerging Valley.

Partnerships: our reflex

The commitment: A project led with a partner is always better than a project without one. AFD provides a collective response, associating player coalitions to strengthen the effectiveness of solutions to issues on the ground.

Progress: Bringing the development banks into line with the Paris Agreement is a priority for the IDFC Club, presided over by AFD, in particular through the creation of the IDFC climate facility to increase the integration of the climate factor in member strategies and promote the concrete implementation of this commitment.

Read and download the AFD 2018 Results

Original source: AFD
Published on 10 April 2019