AFD to Open Office in Ukraine

Responding to the emergencies of war and preparing for the future: AFD plans to support Ukraine in overcoming this two-fold challenge by opening a representative office on July 1, on Independence Square in the capital of Kiev.

“Opening this office is a major step for our Group,” says Axelle Nos, Head of AFD's office in Ukraine. “The missions that we have already carried out in Ukraine have highlighted the importance of working as closely as possible with our partners, who remain highly active and resilient, and with whom we need to mobilize immediately.” 

See also: “ We’re taking the Long-Term View of Ukraine and the Region”

The office will be shared with Expertise France, an AFD Group subsidiary already operating in the country. AFD Group’s aim is to develop long-term partnerships with Ukrainian development organizations in both the public and private sector.

The energy and transport sectors have been identified as the main priorities for action, with support for administrative capacity-building. AFD’s work will be geared towards actions with a rapid impact, as well as other longer-term operations, focusing on the following areas in particular: 

• Ukrainian cities and regions, by supporting efforts to reestablish essential services, rebuild infrastructure and improve inhabitants’ quality of life through access to urban services and housing, while moving towards sustainable practices
• Civil society organizations, whose day-to-day operations support the most vulnerable groups in the population, and foster social cohesion to help mitigate the effects of war, and thus move forward with the economic, social and environmental reconstruction effort
• The private sector, which has a vital role to play in the country’s economic resilience and its capacity to ensure the long-term prosperity of its people by developing strong economic partnerships with European countries

AFD will be allocating €400 million in loans and €50 million in grants between now and 2027.

With this new mandate, AFD will continue to ramp-up its support for the country’s bid to join the European Union (EU), in partnership with Expertise France (see below).

AFD Group is now working actively in all EU candidate countries to ensure their alignment with Europe’s environmental, social and economic aims. In practice, this requires the development of public policy to support the energy transition, more sustainable cities, preservation of natural resources and better governance.

AFD GROUP’S SUPPORT ALREADY IN ACTION IN UKRAINE

In March and November 2022, on behalf of the French government, AFD granted two budget support loans totaling €400 million, to meet emergency needs and support the actions of French NGOs already operating in the country. AFD also intervened in Moldova, where there has been a massive influx of Ukrainian refugees, with support for three NGOs that have taken over their welfare.

See also: Taking Action to Defend the Rights of Refugees

AFD is already present in Ukraine through its subsidiaries Expertise France and Proparco. Expertise France has been operating in the country for over 15 years, notably as part of the L’Initiative program–which provides support for associations deploying the Ukraine emergency fund to prevent HIV and tuberculosis. It has also helped carry out the Pravo-Justice project, financed by the European Union, which aims to strengthen the independence, integrity, efficiency and transparency of the Ukrainian justice system in line with the EU application process.

In 2024, Expertise France will be stepping up its support through mAIDan, the French technical assistance facility, with €14.5 million in financing to identify needs and develop projects that increase resilience and advance the reconstruction effort–particularly in the Chernihiv region–as well as supporting the EU accession process. Over 40 employees should soon be based at the office in Kiev.

For its part, Proparco is holding ongoing dialogue with private-sector companies and assessing potential projects with an acceptable financial risk profile in the current environment. Since the war broke out, the AFD Group subsidiary has invested $18.9 million (€17.5 million) in a fund to support small and medium-sized businesses, which is managed by Horizon Capital, Ukraine’s leading private equity investment firm. Some of the key short-term deliverables of this project include providing support for 6,500 highly-skilled jobs, generating tax revenues and injecting foreign currency into the country's economy.