Guadeloupe

The largest archipelago of the Lesser Antilles, Guadeloupe is faced with major economic, social and environmental challenges.

With more than 30% of the population living below the poverty line, one of the main economic and social challenges facing this French Overseas Department lies in providing access to a decent standard of living and adequate housing.

Guadeloupe’s population has been in decline for almost a decade. And it is aging, making it a real state-of-the-art laboratory for addressing the economic and health issues related to the “silver economy”. In addition, through the number of plant and animal species and the level of endemism, the archipelago is among the world’s 25 largest biodiversity hotspots. In a context of high exposure to the effects of climate change, AFD contributes to the development of natural resources and the implementation of adaptation and mitigation policies, which are regarded as critical for sustainable economic efficiency.

A long-standing donor, AFD has committed close to €1.1 billion over the last 10 years and financed more than 250 projects for the benefit of nearly all the public operators in Guadeloupe. AFD Group helps local authorities and urban developers maintain the quality of public services, develop infrastructure, and promote sustainable economic development, building on internal drivers and fostering social cohesion.

Context

Guadeloupe is the largest archipelago of the Lesser Antilles. It is made up of five inhabited islands: Grande-Terre, Basse-Terre, Les Saintes, La Désirade and Marie-Galante. The two main islands, Grande-Terre and Basse-Terre, are separated by a narrow strip of water called the Salée River. The administrative capital, the town of Basse-Terre, is located on Basse-Terre, while the most populous municipality, Les Abymes, is located on Grande-Terre.
The constitutional revision of 2003 established Guadeloupe as both a Department and a Single-Department Region. Guadeloupe is also one of the European Union’s outermost regions. In addition, it is an associate member of the Organization of Eastern Caribbean States.

The population of Guadeloupe is declining. At 1 January 2020, it stood at 383,600 people. It has declined by an average of 0.7% per year since 2014 (almost 2,800 people per year). This trend is due to a greater number of departures than arrivals in the Department and a low natural surplus. However, the fertility rate (2.08) exceeds the national average and the population remains relatively young (100 young people under the age of 20 for 76 people aged 65 and over).

The median disposable income of Guadeloupeans stands at €15,770 per year and 34% of the population lives below the poverty line. Poverty especially affects single-parent families, young families, and the unemployed. Welfare benefits are the main source of income for the lowest income group.
The AFD Guadeloupe Office is attached to the Atlantic Ocean Regional Office.

Our approach

"AFD and Guadeloupe: reviving growth and fostering regional integration"

With the fragile situation of local public finances, AFD has pursued and strengthened its partnership approach with Guadeloupe’s local authorities. AFD’s advisory support services have been particularly in demand since 2017. They have been further developed and now offer comprehensive plans to restore financial equilibrium for local authorities engaged in this process. AFD’s recommendations are based on a financial and organizational assessment, and the action plans are developed through a close dialogue with elected officials. This leads to an ongoing monitoring and control by AFD, in particular through monthly steering committee meetings.

This action can also be combined with complementary expertise in a wide range of areas, such as school mapping, paid parking systems, port management, and public procurement procedures.

AFD takes action for the inclusion of youth, including through the network of sports facilities developed by its financing to the local public sector, and through advisory support to local authorities and other public institutions.

In recent years, AFD’s financial support to the health sector and medical-social sector has contributed to the operationalization of regional strategy papers. It has also helped close the infrastructure and equipment gap.

For example, over the last five years, AFD has financed several hospital reconstruction operations in Guadeloupe. On several occasions, it has involved long-term AFD support, with regular financial allocations to the same beneficiaries. This has considerably increased their capacity.

AFD’s operations involve financing local authorities’ programs for energy efficiency in buildings and street lighting, and deploying investments under the West Indies Earthquake Plan (Plan Séisme Antilles – PSA). But it also supports the preservation of ecosystems and biodiversity, including erosion and seaweed control.

Over the last five years, AFD has supported several private projects for green energy production (such as wind and solar energy). AFD has also organized technical assistance missions for both private and public operators to facilitate the implementation of green projects (including for the reduction of energy consumption and ReN projects).

For many years, Guadeloupe has faced serious difficulties in the management of its drinking water and sanitation service. This “chronic” crisis is due to shortcomings in the governance of the sector and the organization of services, a lack of technical and financial capacities among water operators, and their lack of control over expenditures and revenues.

This situation, which requires action to improve the quality of the drinking water and sanitation service, has prompted AFD to make most of its range of financial products available (medium/long-term loans, pre-financing for State and European subsidies), as well as technical assistance (via its subsidiary Expertise France). The objective is to enable the water utility company, SMGEAG, to restore a positive dynamic and thereby improve living conditions for people in Guadeloupe.

One of the priorities of the development policy is to help strengthen cooperation between Guadeloupe and its neighboring States. The Guadeloupe office, which is attached to AFD’s Atlantic Regional Office, is actively involved in this strategy. It contributes to giving impetus to regional projects and exchanges that address common challenges (renewable energies, health and adaptation to climate change).

AFD participates in committees that promote multilateral action, and offers networking for private operators through its presence in several Caribbean countries. It also contributes to the internationalization of French expertise through specific funds.