AFD // 2021 Universal Registration Document

FINANCIAL INFORMATION 5 Recent changes and future outlook

5.1 Recent changes and future outlook

5.1.1 Recent changes ACTIVITIES

Concerning the outlook for intervention by geographical area: P In 2022, the volume of commitments should amount to €4.4bn in continental Africa, making it possible to achieve the COM’s “All Africa” objective by 2022. Several operational constraints weigh on this ambitious objective, notably the evolution of sovereign risks as measured in the IMF’s and World Bank’s Debt Sustainability Analyses (DSA). In fact, these analyses show a weakening of the debt trajectories of certain sub-Saharan African countries, which began before the Covid-19 crisis. From an operational standpoint, the year in 2022 will thus have to maintain a good balance between risk management and support for the continent in the financing of its SDG trajectory. In 2022, the volumes of signatures and payments are expected to amount to €3.5bn and €3bn respectively. In continental Africa, AFD will continue to seed the new sectors recently cleared, and to offer the right space to civil society, to which it is entitled. Thus, on 7 and 8 ɸ February, the Forum of Mediterranean Worlds will be held at the Palais des Congrès of Marseille, bringing together civil society stakeholders from both sides of the Mediterranean, where AFD will host a “Projects and Solutions Village”. In February, the European Union-African Union Summit will take place in Brussels, under the French Presidency of the EU, which will be an opportunity to forge stronger andmore strategic links between the two continents, and to reinforce the principle of the Team Europe Initiative. In March, in Dakar, the World Water Forum will hold everyone’s attention. It should also be noted that Egypt will host COP27. The Orients department will pursue an ambitious signature target of €2.3bn, building on the achievements of previous years. Activities will again depend largely on the political, diplomatic and economic uncertainties of the region, while there are many areas of proven or suspended crises (notably Turkey, the Middle East, the South Caucasus, Kazakhstan, Afghanistan, Pakistan, Sri Lanka, and Myanmar). In the wake of the French Presidency of the EU Council, the Orients department will strengthen its support for the European convergence of the Western Balkan countries in 2022, building on its increased presence in the region. The operationalisation of the French and European strategy in the Indo-Pacific region will also be a central subject for the department. Lastly, the Orients department will once again be involved in reducing inequalities, notably in terms of gender (60% of ORE commitments in 2022 must have gender co-benefits – gender marker CAD ɸ 1 and ɸ 2). Efforts will also be pursued in the fight against climate change with a sustained target of 65% climate benefits. AFD’s signature target in the Three Oceans amounts to €1.1bn for 2022. This objective reflects the continued mobilisation of our local offices in the three ocean basins to respond to the unprecedented economic and social impact of the Covid-19 crisis, in line with the “Overseas in Common” initiative. In the French Overseas Departments and Collectivities, AFD will continue to implement its action in the framework

The overall activity of the AFD Group in 2021 amounted to €12.1bn, and increased slightly compared to 2020. AFD’s commitments in foreign States amounted to: €8.8bn (-1%). In the French Overseas Departments and Collectivities, commitments amounted to €1.1bn. Proparco’s activity amounted to €2.4bn in commitments (incl. Fisea), up 14% compared to 2020. These results are in line with the targets set by the business plan for the year. GOVERNANCE AFD’s governance system has not changed. 5.1.2 Future outlook The year in 2022 was in line with 2021, with the consolidation of achievements in terms of management through signatures, increased attention to monitoring results and impacts, and the consolidation of AFD’s and Proparco’s activity, which amounted to €12bn in annual commitments. The AFD Group also integrated Expertise France’s activity, which amounted to €335M in revenue. The Group set itself the target of reaching €10.2bn in signatures in 2022, and €8.8bn in payments and €12bn in commitments. In 2022, the AFD Group will continue to implement the strategic objectives of the 4 th strategic orientation plan (SOP4) in terms of climate, social ties, action in crisis areas, non-sovereign activities and partnerships. It will work on the definition of its future strategy for the 2023-2027 period (5 th strategic orientation plan). This SOP5 will transpose the provisions of the law of 4 ɸ August 2021 into the Group’s strategic guidelines. It will be fully consistent with the future contractual targets and resources (“COM”) for the 2023-2025 period and will result in a new organisation whose outlines are being drawn up. The AFD Group will also contribute to the French presidency of the European Union. On 16 ɸ February, it will organise an event in Paris bringing together its African and European counterparts to highlight and further develop new initiatives and coalitions for investment in Africa. It will continue to transform itself in 2022, its objective being simplicity and collective efficiency in a new Group scope with, notably, the simplification of its processes, and the implementation of a new stage in the modernisation of its information systems with the launch of the Operational Functions Master Plan (OpéraSIons programme) , for which the first studies began in 2021. The ITMaster Plan for the finance and risk functions (FabRIk programme) will be pursued in parallel. In 2022, the off-plan sales contract for the future head office will be signed. Lastly, after obtaining the double AFNOR diversity and professional equality label in 2021, the implementation of which will continue in 2022, the AFD Group will develop its ethics system and update its CSR policy.

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2021 UNIVERSAL REGISTRATION DOCUMENT