Frequently Asked Questions

The entities of AFD Group are public institutions. Their task is to help fulfill France's commitments to sustainable investment and international solidarity, both in its overseas territories and internationally. The three components of AFD Group are Agence Française de Développement (AFD), which is responsible for financing the public sector and civil society organizations (CSOs), research, and training on sustainable development; Proparco, which is dedicated to financing the private sector; and Expertise France, a technical cooperation agency.

AFD Group operates in over 160 countries and 11 French Overseas Territories, investing in and co-developing shared solutions with and for local people. It supports more than 4,000 projects that reconcile economic and social development with the preservation of common goods such as climate, biodiversity, gender equality, education, health, and peace. In this way, it works to achieve the Sustainable Development Goals (SDGs).

In 2023, AFD Group invested €938 million in French overseas territories, but it’s true that most of its sustainable investments target foreign countries.

Global challenges like climate change, migration crises, and biodiversity loss know no borders: their impacts are also felt in France. In this way, the solidarity-driven and sustainable investments made internationally by AFD Group, which come in addition to those made by other public entities, benefit France in return.  

Indeed, to ensure our own prosperity and security, we must prevent crises at their source, in the most vulnerable regions of the world. Moreover, 73% of the projects we financed in 2023 involved French actors, thereby boosting their innovation and competitiveness. A development policy makes it possible to form bonds of friendship and cooperation with partner countries, thereby providing concrete responses to global challenges.

For example, in 2023, AFD Group actions helped provide access to drinking water for 12.6 million people and supported the conservation of 33 million hectares of vital ecosystems.

In short, investing abroad means taking action for a more sustainable future, in France and elsewhere.

AFD Group takes action in countries where the French government gives it a mandate to focus on meeting the needs of vulnerable people and improve structural challenges over the long term, regardless of the regimes in place. Fighting poverty, improving access to healthcare, strengthening education, and promoting sustainable energy solutions are crucial actions that must be addressed over the long term. In 2023, AFD Group enabled access to healthcare for 70 million people, including in unstable areas in the Middle East and the Sahel.

In such complex situations, where relations with States can be strained, AFD Group works with NGOs, local businesses, and local governments to support the social and economic fabric, thus helping to avoid new crises.

Above all, AFD Group mainstreams respect for human rights into all its actions. In partnership with local stakeholders, we carry out projects focused on health, education, and equality. These initiatives are part of our vision of solidarity-driven and equitable development.

Finally, AFD forms alliances for France, by forging relationships based on mutual respect and common interest. Our work rounds out that of diplomats, by maintaining channels of dialog and strengthening France's credibility as a responsible global player.

AFD Group does contribute to France's international influence. It embodies a national effort to ensure a more secure and prosperous future despite short-term geopolitical uncertainties. Among AFD's projects in 2023, 73% saw participation by a French economic stakeholder, but always within a framework of “untied” support, i.e., without favoritism, so as to promote local stakeholders as much as possible.

AFD Group actions are guided by sustainable development criteria and carried out in partnership with local companies and organizations selected through transparent international calls for tenders. For example, in the Jet-P program in Vietnam, AFD mobilized French expertise to support the energy transition, without imposing predefined solutions.

Official development assistance (ODA) and solidarity-driven and sustainable investment are two complementary frameworks in international development. ODA was created in 1969 as a form of public financing committed by OECD member countries considered at the time to have developed economies. The aim was to support the least developed countries through grants, preferential loans, and structuring projects in areas such as health and education. However, ODA is showing limits both in its capacity to address the global challenges of today (climate change, biodiversity, energy transitions) and in including private initiatives.

In response, solidarity-driven and sustainable investment is emerging as a more inclusive model that’s open to all countries of the world and that includes both public and private financing to achieve the Sustainable Development Goals (SDGs). It facilitates innovative and global solutions that take into account climate, social, and economic interdependencies.

• Responses adapted to local realities
• Hybrid mobilization of public and private capital
• Impact assessment to optimize the use of resources

By combining solidarity and sustainability, solidarity-driven and sustainable investment is redefining the shape of international cooperation by focusing on not only the needs of beneficiary countries, but also their ability to contribute to sustainable global trajectories.

AFD Group contributes €2 billion to France's ODA commitment. We can also consider that 100% of its €12 billion in annual commitments fall under solidarity-driven and sustainable investment.

AFD is a non-profit financial institution. It therefore has a broad self-financing capacity and covers all of its operating costs itself.

To successfully carry out its solidarity-driven investments around the world to help common goods (climate, biodiversity, public health, etc.), Agence Française de Développement (AFD) receives a public contribution of about €2 billion per year, allocated by the French government from the public budget.

This investment is crucial for raising additional resources on financial markets. It enables AFD to use a leverage effect to finance, to the tune of €12 to €13 billion each year, new projects in important areas such as access to education and health, the fight against climate change, and support for social and economic initiatives in developing countries.

Some key results of AFD in 2023:

• The 163 mitigation projects supported by AFD in 2023 are expected to help avoid 2.7 million tonnes of CO₂ equivalent per year over their entire lifespans.
• 64 million people had their access to healthcare improved.
• 33 million hectares of terrestrial biodiversity benefited from conservation or restoration programs.
• 4,000 km of interurban land routes were created or rehabilitated.

To find out more > Discover the essentials of our 2024 Activity and Social Responsibility Report on the dedicated datawall.

85% of AFD's resources come from bond issues. These come from private investors, capital, international pension funds, and central banks. It's thanks to France's financial strength that AFD is able to find these funds.

In 2023, AFD raised a total of €8.03 billion through bond issues, including €3.42 billion through sustainability bonds.

The interest generated by the loans granted by AFD Group to its clients covers AFD's operating costs, including the salaries of its 4,500 employees in 160 countries. It also provides the equity needed to cover the risks of default.

In 2023, AFD Group's consolidated net income was €371 million. As in previous years, some of this income must be returned to the State.

The remaining 15% of resources is made up of grants from public institutions such as the French government and the European Union.

AFD adapts its financing conditions according to the level of economic development of countries, in particular by distinguishing least developed countries (LDCs) from emerging countries.

For the LDCs, which include the most economically vulnerable countries, AFD provides mostly grants and concessional loans. These latter are granted on particularly advantageous terms, with State-subsidized interest rates and very long repayment periods. The aim is to alleviate the financial burden for these countries. This enables them to invest in essential sectors such as health, education, and access to drinking water.

On the other hand, for emerging countries such as India, Brazil, and South Africa, AFD takes a different approach. Because emerging countries naturally have greater resources and financial capacity, AFD provides them with unsubsidized loans reflecting real market conditions. This type of financing is designed to cost nothing to the French taxpayer; indeed, they are self-financed by AFD by borrowing on international markets. These loans, which are often used for climate and biodiversity projects, help strengthen economic and diplomatic partnerships with France.

This distinction between LDCs and emerging countries guarantees an allocation of resources adapted to the specific needs of countries and optimizes the impact of AFD's actions.

Each sustainable development project is by nature unique and complex. But AFD Group does its utmost to avoid financing projects with negative impacts on the environment. Any project based on the exploration or production of fossil fuels is excluded from its financing. In addition, AFD Group has equipped itself with solid means of oversight: all the projects financed are subject to a sustainable development analysis, covering the six cross-cutting dimensions of biodiversity, climate, social link, gender, governance, and economy. In addition, it has an environmental and social complaint system designed to remedy any problematic situations.

Since 2017, AFD Group has aligned all its financing with the objectives of the Paris Agreement on climate change. This ensures that each project supports low-carbon development and complies with the climate commitments of partner countries.

In 2023, several milestones were reached:

• 100% of projects were aligned: each financing is evaluated automatically for its compatibility with low-carbon trajectories and its climate co-benefits.
• 50% had climate co-benefits: half of the financing had a positive impact on the climate, in particular through projects to reduce emissions or adapt to climate change.
• €1.1 billion for biodiversity: target reached two years ahead of schedule, confirming AFD's role in preserving ecosystems.

International advocacy and mobilization: AFD Group also actively contributes to the "greening” of the financial system as a whole, by sharing its methodologies and expertise on climate change and by mobilizing public and private financial players to finance joint projects for which they would not have taken the financial risk alone.

In 2023, €7.5 billion was mobilized for climate actions, including €3 billion for adaptation, for example by supporting sustainable agriculture for 1.4 million families and access to renewable energy.

In 2024, the think tank E3G recognized AFD as “transformational," thereby boosting its role as a model for climate alignment and the transition to a low-carbon and resilient world.

International migration often stems from major crises related to poverty, conflict, inequality, climate disasters, and lack of economic opportunities. These factors push millions of people to leave their home at the risk of their safety.

AFD Group tackles the structural causes of migration by offering sustainable solutions. By supporting sustainable agriculture, it strengthens food security and local economies through the use of modern irrigation systems and resilient crops. At the same time, access to education, health and drinking water programs are transforming living conditions and reducing inequalities.

Far from simply providing humanitarian aid, AFD's global approach meets basic needs while strengthening local infrastructure. This promotes stability and offers people prospects for the future in their country of origin.

While these overseas territories are part of the French Republic, they are also outposts of global warming. Their remoteness, their insularity, and their high level of exposure to climate hazards put them on the frontline of global environmental challenges. AFD Group takes a specific approach to strengthening their resilience and sustainable development.

But AFD Group’s action goes beyond a simple territory-by-territory approach. Considering development from the point of view of the French overseas territories  and in the context of the 2030 Agenda of the Sustainable Development Goals (SDGs), their role within their respective ocean basin areas should be taken into account. The problems they face (such as climate change, preservation of biodiversity, ocean pollution, fishing, and energy autonomy) are often similar to those faced by their neighbors, whether French or foreign. This regional dimension enables AFD to promote connections between the French overseas territories and their neighboring countries, thus promoting the sharing of solutions and cooperation.

In this regional outlook, the French overseas territories are appreciated as dynamic economic hubs in their immediate environment, and they are perceived as reservoirs of skills and innovation by their neighbors. In short, while the French overseas territories suffer from vulnerability, they are also strategic regional players that can actively contribute to the global ecological transition and stimulate sustainable development in their ocean basin.

AFD no longer limits its actions in emerging countries to official development assistance (ODA). Today, it favors solidarity-driven and sustainable investments that meet major global challenges such as the fight against climate change and the preservation of biodiversity. This means that no public grants are used there directly. The funds come in the form of loans at unsubsidized rates. These are loans granted on market terms, i.e. without a subsidy to cover the interest rate.

These initiatives lead to strategic partnerships with these major economic powers, helping strengthen France's role on the international stage. They also help create opportunities for French companies and boost economic and diplomatic ties between France and these influential countries.

Finally, AFD's actions in emerging countries generate multiplier effects that also benefit the least developed countries (LDCs), without making use of French public funds. This ensures that budgetary resources remain available for crucial initiatives in LDCs.

In addition, projects in emerging countries are often focused on climate and biodiversity, meaning they have a global impact. Reducing carbon emissions or restoring ecosystems in these major economies thus contributes directly to limiting the effects of climate change, which affect the LDCs disproportionately.

By working with emerging countries, AFD ultimately enables France to better defend the interests of LDCs in global discussions, creating strategic complementarity between the two types of beneficiaries. AFD’s actions in emerging countries thus do not compete with those in LDCs; instead, they increase AFD's overall capacity for action.

AFD's activity in China is strictly regulated by French legislation (Act of August 4, 2021, on Inclusive Development and Combating Global Inequalities). Its activity there is part of several bilateral commitments signed between France and China on protection of global public goods, including the recent joint declaration of May 2024 on preserving biodiversity.

AFD operates in China as a financial institution dedicated to solidarity-based and sustainable investments. Its actions take the form of loans on market terms, which do not use any public funding from the French State and which cost the taxpayer nothing. In concrete terms, the Chinese government borrows money from AFD and pays it interest in return. These loans are repaid over a period of up to 20 years, in accordance with market conditions. All amounts due to AFD under this financing are reimbursed by China in accordance with set conditions.

With these loans, AFD is making investments designed to respond to joint challenges, such as fighting climate change and protecting biodiversity. These are challenges we share in common, because China is one of the 18 mega-biodiversity countries in the world and home to several biodiversity hot spots. In addition, due to the size of the country, China's emission trajectory is decisive for achieving the objectives of the Paris Agreement. The future of our planet therefore partly depends on China.

Over the past 20 years,  AFD has invested €2 billion in China in nearly 50 innovative projects with high added value. For these projects, French companies have recognized expertise and know-how that are sought by the Chinese authorities. Several French companies have succeeded, in accordance with the principles of untied aid, in applying for and winning contracts for AFD-financed projects. Poma, for example, a French company specializing in cable car lifts, signed a contract in early 2025 for two aerial tramways as part of a project to protect biodiversity in the Xianju Natural Park in Zhejiang. In the waste treatment sector, the technical expertise of Veolia Water was mobilized in AFD-supported construction of a plant for the treatment and energy recovery of food waste in the city of Shaoyang, in Hunan. Additionally, the expertise of Schneider Electric was put to good use in AFD-financed district heating projects in Jinzhong, Taiyuan, and Jinan.

In this way, each AFD project contributes to strengthening bilateral cooperation between France and China, as well as to accelerating the global ecological and energy transition in order to achieve the objectives of the Paris Agreement.

To address growing geopolitical tensions, AFD Group works to strengthen the resilience of countries on the European Union’s eastern border, on actions combining European ambitions and internal challenges. France's commitment reflects the twofold desire to support reforms in those countries and to consolidate regional stability.

In Ukraine, AFD supports the reconstruction of essential infrastructure and reforms to modernize the economy. In Moldova, our initiatives seek to strengthen energy security and diversify energy supply. In Georgia, focus is on investment in hydroelectricity and improvement of public services.

These actions are putting into action the long-term vision of making these countries strategic and economic partners for Europe and France, and of building a stable and prosperous region that can face the current challenges.

AFD Group is aligned with Sustainable Development Goal 5, showing its deep commitment to gender equality.

This commitment takes the form of concrete actions in its projects, internal practices, and international advocacy:

• Gender mainstreaming: AFD Group has been systematically mainstreaming gender equality into its operations since 2018, with its “100% Social Link” strategy. In 2023, 64% of AFD Group's projects contributed to reducing these inequalities. In Senegal, for example, financing for bus rapid transit (BRT) includes measures to promote women's safe access to transportation and their employment in this sector.
• Illustrative projects: In the DRC, the “Pour Elles" project provides sports and cultural activities to 3,000 girls and trains 200 local stakeholders against inequalities. In Tunisia, the Efor project supports the economic empowerment of women farmers with €7 million in financing.
• International advocacy: AFD Group plays a committed role in France's feminist diplomacy. As the main bilateral contributor to the Global Partnership for Education and the Support Fund for Feminist Organizations (FSOF), ti promotes girls' education.

Sustainable forest management cannot be envisaged without the active participation of local and indigenous peoples, who are often the custodians of traditional knowledge. However, these communities face significant obstacles such as marginalization, lack of resources, and dependence on governance models that do not always take their needs into account. AFD Group is working to give local people a central role in forest management while respecting environmental balances.

In the Congo Basin, AFD Group supports community forestry projects that enable local people to directly manage natural resources. AFD also finances training for women, in Cameroon for example, where they participate actively in the production and marketing of non-timber forest products such as honey and natural cosmetics.

In addition to these initiatives, AFD supports scientific research to support the adoption of practices such as low-impact logging and more in-depth understanding of tropical ecosystems. These efforts combine preservation of biodiversity, improvement of living conditions, and creation of economic opportunities. They demonstrate that participatory and sustainable forest management is not only possible, but also necessary in order to ensure forest conservation while meeting the needs of present and future generations.

AFD Group is committed to full transparency in its actions, so that it can build trust among its partners and explain how official development assistance is used.

This transparency is based on key principles: the broad sharing of useful information, protection of sensitive data, and dialog with all stakeholders.
AFD Group publishes information on its governance, strategies, projects, and financing, while at the same time complying with professional secrecy and confidentiality agreements.

The reports made available include those on financial data, regional and sectoral strategies, and analyses of the environmental and social impact of its activities.

Dialog is a core aspect of this approach. At the local level, for example, the projects financed involve consultations and exchanges with the local population and authorities. Globally, AFD Group works with governments, NGOs, businesses, and researchers to strengthen international cooperation.

• Requests for information or complaints can be addressed to transparence@afd.fr or reclamation@afd.fr. An independent system guarantees that claims related to social or environmental impacts are dealt with objectively.
• Information on AFD-financed projects is published on:
   

1. AFD's Open Data portal and the International Aid Transparency Initiative (IATI) website.
2. The open platform for French public data.

The selection process for Agence Française de Développement (AFD), for example, is carried out according to rigorous methodology and is based on a systemic analysis of the potential impact of the project. Each project must not only meet the strategic priorities set by French development policy but also be aligned with the Sustainable Development Goals (SDGs). These priorities include combating climate change, preserving biodiversity, reducing inequalities, and strengthening public institutions.

The selection process involves several key steps:

• Co-design with local partners: projects are developed with States, NGOs, businesses, and local authorities to meet their identified needs.
• Impact analysis: each project is evaluated on the three pillars  (planet, human, economy/governance) of sustainable development with a rating ranging from -2 (negative impact) to +3 (transformational impact).
• Exclusion criteria: projects incompatible with climate and social commitments, such as those related to fossil fuels, are rejected.
• Approval by the Board of Directors: the projects are analyzed prior to approval by a Board representing French government ministries, elected officials, and civil society.

AFD Group has a general policy that covers prevention, detection, and the measures to take against any act of corruption, fraud, money laundering, terrorist financing, and anti-competitive practice that may jeopardize its activities or operations. This policy meets the highest standards.

Ensuring that every euro invested actually benefits the beneficiaries is a priority.

Present throughout the world, AFD Group has established strict mechanisms to ensure optimal and transparent management of funds:

• Co-design of projects: As part of its mandate, AFD responds to specific local requests from its partners on the ground (NGOs, companies, local authorities) to determine objectives adapted to people’s real needs.
• Rigorous fiduciary management: Audits, financial controls and anti-corruption mechanisms ensure the transparent use of funds on an ongoing basis and across all projects.
• Enhanced operational monitoring: Local teams monitor projects with the support of independent evaluations.
   

In 2023, these measures enabled:

• 70 million people to enjoy improved access to healthcare;
• 12.6 million people to benefit from drinking water;
• 33 million hectares of natural areas to be restored or protected.
   

Accountability is also enhanced by a grievance mechanism, which enables affected communities to report any issues. In this way, AFD makes sure that the impact of its financing is maximized for those who need it most.

Each year, AFD Group publishes a report evaluating the impact and effectiveness of its projects to promote transparency and accountability. The 2023 report analyzed 124 projects carried out between 2021 and 2022, mainly in Africa, covering key sectors such as health, education, and governance. It highlights the results obtained and identifies ways to improve the sustainability of actions, while at the same time fueling the public debate on sustainable development.

See the Evaluation Report 2023

AFD also operates a structured and transparent governance framework, with control mechanisms ensuring its accountability:

• Strategic framework: The Interministerial Committee for International Cooperation and Development (CICID) determines AFD's priorities, in collaboration with the Ministries of Foreign Affairs, Economy, and Interior.
• External oversight: France’s Inspectorate General of Finance, Court of Auditors, and Prudential Supervision and Resolution Authority (ACPR) oversee its financial and operational practices. An evaluation commission dedicated to development policy is also in the process of being set up, as stipulated in the Act of 2021 on Inclusive Development and Combating Global Inequalities.
• Internal governance: AFD’s Board of Directors includes representatives of the State, members of Parliament, and qualified key figures to ensure that political, economic, and social issues are taken into account in a balanced way.

To meet its real estate needs and reduce its operating costs, AFD Group has decided to purchase 40,000 m² of office space in a real estate complex. This project will bring together employees who are currently scattered over six locations. It will reduce operating costs by 20% through the optimization of surfaces and shared spaces. This choice is neutral for the State budget. The purchase will be partly financed by the sale of the current 56,000 m² headquarters.

The project complies with the Paris Climate Plan, with high environmental standards. It will include a photovoltaic farm that will cover 50% of energy needs and provide 20,000 m² of greening. Nearly 12,000 m² of concrete surfaces will be de-sealed, and green spaces will increase by 33% around the site. Eco-mobility initiatives include 1,000 bike spaces, up from 200 currently. This operation, which guarantees budget savings and social and environmental advantages, will strengthen AFD Group's synergies.