AFD // 2021 Universal Registration Document

STATEMENT OF NON-FINANCIAL PERFORMANCE 2

Coordination with development players: the “Priority to partnership”

architecture, on the dialogue with the European Commission on the FEDD tool, and on issues related to the IDFC club. AFD also pursued its dialogue with the UK’s FCDO (Foreign, Commonwealth & Development Office), and made an AFD climate expert available to support preparations for COP26. With the European Investment Bank (EIB), 2021 was marked by the follow-up to the EIB’s internal reorganisation, with the creation of a branch for the Bank’s operations outside the European Union, which will be operational on January 1 st . It is a dedicated department, with a capitalisation and a risk policy distinct from the rest of the Bank and adapted to its activities outside the EU. As regards the European Bank for Reconstruction and Development (EBRD), an MoU (7) was signed at the AFD group level to strengthen our partnership on institutional and operational activities. 2.6.2.2 International actors: Pursuit The management of structuring partnerships relating to the AFD group’s activities continued to be reinforced, with in-depth discussions on transactions in virtual or hybrid format. In parallel, executive staff-to-staff meetings were held regularly. The partnership with the African Development Bank was strengthened in 2021. With the World Bank Group (WBG), the high-frequency and decentralised coordination in the field (both among agencies and at the Regional Directorate level), which characterises this strategic partnership, continued, while the specific coordination required by the crisis diminished in 2021. In August ɸ 2021, the cofunding framework agreement was renewed for three years. This framework agreement resulted in a very significant reduction (by half) of the average cost of delegating tasks to the WBG, while the use of this type of cofunding is growing. AFD reinforced its cooperation with the Inter-American Development Bank throughout 2021, by ramping-up strategic and operational dialogue. The two banks drew up a review of their cofunding, amounting to $4bn since 2018, therefore far exceeding the $1bn target that was set when the partnership agreement was renewed. The African Development Bank (AfDB) and AFD collaborated throughout 2021 on the Finance in Common Summit. They also worked on the mobilisation of public development banks by organising a satellite event at the Summit on the financing of African economies held in May ɸ 2021. In November ɸ 2021, the AfDB and AFD also signed a new partnership agreement, including cofunding arrangements, which set a cumulative target of €2bn within three years. and development of structuring partnerships withmultilateral and regional development banks

Beyond the “CSO Initiative”, AFD continued its partnership with and financing for CSOs in 2021, across all mechanisms (Minka (1) , FSOF (2) , Fisong (3) , calls for sectoral and geographical projects). Dialogue is also diversifying as part of the partnership strategy and is intensifyingwith foundations and other funders committed to CSO financing. However, issues relating to compliance and the fight against the financing of terrorism affected the AFD CSO dialogue throughout 2021, pending ministerial arbitration, which took place in December ɸ 2021, and clarified expectations and operating methods. 2.6.2 Partnership with European and ɸ international players 2.6.2.1 European actors: continued efforts to mobilise European financing and develop our relations with our bilateral partners 2021 was a pivotal year in Europe with the adoption in June ɸ 2021 of the NDICI (4) , the European Union’s (EU) new multi-annual financial framework for 2021-2027, as well as the completion of the discussions of the “Senior Panel” on the framework of the European financial aid architecture. In this context, AFD continued to work for the establishment of an open, inclusive and consistent European system, allowing direct and equal access to EU guarantees and delegated funds for all European development institutions, in order to mobilise as many resources and complementary areas of expertise as possible. In 2021, the AFD group continued its financial cooperation with the European Union, despite the institutional context that significantly reduced the amounts that could be mobilised. Thus, 20 project grants, amounting to €274M (15 mixed projects for €195.8M, including €11.5M from Proparco, and five direct delegations for eight projects for €78.7M), as well as €157M in Expertise France contracts, were granted by the EU to the AFD group, as a result of the carryforwards of the 2014-2020 multi annual financial framework on the INTPA mix (5) , of the NEAR’s efforts (6) to anticipate the 2021-2027 programme, and of the dynamism of the partnerships between the EU delegations and the local offices in the field. 2021 was also an opportunity for the “reinforced partnership” initiative to start the implementation of a cofunding mechanism common to the four bilateral players (AFD, KfW, CDP – Cassa Depositi e Prestiti , the Italian agency – and AECID – the Spanish Agency for International Development and Cooperation), in response to the Commission’s drive for a reinforced “Team Europe” format, which will be implemented in 2022. In its relations with European bilateral players, AFD continued to strengthen its relationship with German institutions, through its relations with GIZ and KfW, notably on the European aid

(1) https://www.afd.fr/en/minka-peace-and-resilience-fund (2) https://www.afd.fr/en/support-fund-feminist-organizations (3) https://www.afd.fr/en/financing-ngo-projects

(4) New neighbouring, development cooperation and international cooperation instrument. (5) Directorate-General for International Partnerships of the European Commission. (6) Directorate-General for European Neighbourhood Policy and Enlargement Negotiations. (7) Memorandum of Understanding.

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2021 UNIVERSAL REGISTRATION DOCUMENT