Agence Française de Développement

Agence Française de Développement, commonly known as AFD, is France’s public development-finance institution. It supports public policies and projects in developing countries and French overseas territories through loans, grants, equity investments, guarantees and technical assistance. Its areas of activity include climate and environmental protection, infrastructure, education, health, agriculture, urban development, governance and financial inclusion. AFD is also an implementing institution for France’s international development-cooperation policy, which distinguishes it from commercial banks primarily focused on private profitability. Its institutional origins date back to the central-fund structures created during the Second World War for Free France, which later evolved into a public financial institution serving overseas territories and international cooperation. The name Agence Française de Développement was adopted in 1998. AFD works with national and local governments, public agencies, companies, financial institutions and civil-society organizations to design, finance and implement development projects. Its activities span several regions, with a particularly strong focus on Africa, French overseas territories, climate and biodiversity.

AFD’s institutional origins can be traced to the central-fund structures created for Free France in 1941 during the Second World War. After the war, the institution progressively took on financial and economic-support functions for French overseas territories. Through subsequent reforms, it developed into a major public institution within France’s international development-cooperation system. During the second half of the twentieth century, its activities expanded from overseas-territory finance to international development financing, working with foreign governments, public agencies and project implementers. In 1998, it adopted the name Agence Française de Développement, reflecting its broader development-cooperation and international-finance role. In the twenty-first century, AFD expanded its work in climate action, sustainable cities, infrastructure, health, education, agriculture and financial inclusion, using loans, grants, equity investments, guarantees and technical assistance. Africa, French overseas territories and other developing regions have remained important areas of activity. As France’s public development-finance institution, AFD’s strategic direction is closely linked to French government development policy, while it also cooperates with multilateral development banks, foreign public bodies, companies and civil-society organizations.

• 1998

  Adopts the name Agence Française de Développement

  The institution adopts the name "Agence Française de Développement," reflecting its role in international development cooperation and development finance.

• 1941

  Institutional predecessor established

  The Central Fund for Free France (Caisse centrale de la France libre) is established, forming the institutional origin of the Agence Française de Développement.

A public development finance institution within the French government system and an implementing agency for international development cooperation

• development finance

  Development loans

  Development financing for public-sector borrowers and eligible projects in infrastructure, social services, climate action and other policy areas.

• development assistance

  Grants

  Non-repayable support for selected development-cooperation projects, often covering social development, capacity building and technical cooperation.

• development finance

  Equity investments

  Equity or equity-like investments used to support selected development projects and institutions over the long term.

• development finance

  Guarantees

  Risk-sharing and credit-enhancement instruments that help public bodies, financial institutions or projects access development finance.

• development cooperation

  Technical assistance

  Expert support for project preparation, institutional capacity building, policy design and implementation assessment, often combined with financing.

1. 1Agence Française de Développementafd.fr