AFD - 2019 Universal registration document

PRESENTATION OF AFD

Activities of the Agence Française de Développement Group in 2019

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5 % Agriculture and food safety

17 % Other and multiples sectors

9 % Water and drainage 7 % Education

and vocational training 8 % Environment and natural resources

17 % Business, Industry and Trade

3 % Healthcare and AIDS prevention

34 % Infrastructure and urban development

In 2019, the infrastructure and urban development sectors continued to represent one-third of AFD’s commitments in Foreign States, with a total up slightly to €3.4bn (compared to €2.8bn in 2018). These commitments cover three sectors: transport, energy and urban development. The transport activity has a contrasted profile from a geographical viewpoint. One-third of new 2019 commitments are located in Africa, with the financing of the BRT (Bus Rapid Transit) in Abidjan, an emblematic project co-financed with the World Bank; the remainder is spread between the Orients and “Three Oceans”; Latin America is absent due to the uncertain political context (elections in numerous countries). Urban mobility represents 60% of commitments - we find the financing of public transport infrastructures (Surat metro in India, Abidjan BRT, Karachi BRT) and also an ambitious public policy loan in the Dominican Republic alongside the Inter-American Development Bank, which reflects a reinforced positioning in public policies. Half of 2019 commitments have a climate co-benefit, mainly in mitigation. Moreover, an “air quality” facility was approved, enabling us to intervene in this transversal issue which is growing in importance, in partnership with French players such as AirParif or international players such as the C40 city coalition and German cooperation (GiZ). In 2019, the urban development activity largely focused on Africa, with the financing of a support programme to improve the performance of Moroccan cities (co-financed with the World Bank), the financing of the construction and rehabilitation of markets in Bouaké and Youpougon in Côte d’Ivoire, the financing of the rehabilitation programme of vulnerable districts in Ganvié, Benin, the financingof a public lightingproject inKampala, Uganda, and the financing of a project to improve waste management in Senegal (co-financed with the World Bank). In Latin America, AFD granted financing for rehabilitation and climate change adaptation project in the vulnerable district of Caximba with the Brazilian city of Curtiba and the Casa para todos programme to promote

social housing in Ecuador (co-financed with the Inter-American Development Bank). In the Orients region, AFD granted financing for several projects and programmes including the development and enhancement project for themajor archaeological and natural site of Fengxiang in China, and amulti-donor capacity building and infrastructure financing reinforcement programme for Palestinian municipalities. Lastly, in the Three Oceans zone, AFD financed the first natural disaster contingency loan in Madagascar (co- financed with the World Bank). The Business, Industry and Trade sector was this year AFD’s second intervention sector with 17% of commitments (€1.6bn), stable compared to the previous year. Water and drainage accounted for 9% of commitments this year at €0.91bn compared to €0.89bn the previous year. In 2019, AFD’s interventions contributed to: i) sector governance improvements and capacity building. Thus, AFD granted a public policy loan of €150M in Jordan with the aim of optimising the financial management of the sector, reinforcing the technical performance of operators, encouraging water resource management strategies and gender strategies; ii) the fight against climate change in both adaptation and mitigation. A loan of €28M to reinforce the Ivorian weather services was approved, for example, which will improve the Ivorian population and economy’s resilience to weather and climate events. The total amount of grants is historically high for this sector in 2019: subsidies from the State were close to €150M. Several operations concerned particularly fragile zones in the Sahel (Burkina Faso, Mali, Mauritania). The AFD also financed a first project in this sector in Gambia, to improve drinking water supplies in the Banjul zone (grant of €16.5M).

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UNIVERSAL REGISTRATION DOCUMENT 2019