AFD - Universal Registration Document 2020

FINANCIAL INFORMATION 5

Recent changes and future prospects

5.1 Recent changes and future prospects

and will steer the creation of an Innovation for Development Fund chaired by Esther Duflo. To this end, AFD will also mobilise around two key moments: the “Tour de France of international commitment to sustainable development” and the Agency’s 80 th Ǿ anniversary on 2 Ǿ December 2021. Concerning the outlook for intervention by geographical area: P the first half of 2021 will be marked by several events dedicated to Africa, with which AFD is associated. In May Ǿ 2021, France will host a conference dedicated to the financing of African economies, in response to the financing needs of African States due to the health context and the measures taken to combat the Covid-19 pandemic. Lastly, from 8 to 10 Ǿ July 2021, the new Africa-France Summit will be held in Montpellier, entirely dedicated to African youth and civil society with a focus on “Young Leaders” and cultural and creative industries. From an operational standpoint, AFD will endeavour in 2021 to maintain a stable volume of grants compared to Ǿ 2020. On a thematic level, the engagement strategy will focus on the continuation of the Minka projects in the Sahel, on gender and education. AFD’s Africa strategy for 2021-2024 will be presented. This exercise will make it possible to strengthen a continental approach to major African issues by relying in particular on the potential offered by the young people of Africa, and to strengthen our action in the areas of vocational training, employment, the promotion of female empowerment, the support of human capital and the promotion of sustainable peace; P the activities of the Orients department are now structured around five regional departments: Eurasia, Middle East and South Asia (all three established in Ǿ 2019), South East Asia and China (both established in 2018). AFD’s commitment target in this geographical area is €2.6bn in 2021 (compared with €3.1bn in Ǿ 2020); P AFD’s activity target in the Three Oceans amounts to €1.4bn for 2021. This objective reflects the continued mobilisation of our agencies in the three ocean basins to respond to the unprecedented economic and social impact of the Covid-19 crisis. In the French Overseas Departments and Collectivities, AFD will include its overseas action as part of the government’s recovery plan and, in particular, its support system for local authorities, in parallel with the “5.0 trajectory” launched in Ǿ 2019 by the French Ministry of Overseas Departments and Collectivities. Financing projections (excluding Bpifrance and Sogefom guarantees) should stand at €915M for 2021, down 24% compared to what was achieved in Ǿ 2020 (subject to additional needs in the Pacific COMs in particular). A significant portion of the funding will once again be for the public sector, which is estimated at €691M for the loan component, to which must be added the commitments made by AFD for the Patient-Cazeneuve system (COROM contracts for the return to financial equilibrium in the French Overseas Departments and Collectivities). On the subsidy component (French Overseas Departments and Collectivities Funds), €15M should be committed in 2021. For the private sector,

5.1.1 Recent changes ACTIVITIES

The AFD Group’s total activity in Ǿ 2020 reached €12bn in commitment authorisations, i.e. a decrease of around 15% (€2.1bn) compared to the results achieved in Ǿ 2019. These results are lower than the targets set by the business plan for Ǿ 2020, which were €13.4bn for the Group (after notification of the loans of the 209 Ǿ programme). GOVERNANCE AFD’s governance system has not changed. 5.1.2 Future prospects The year 2021 should be marked by the reinforcement of the management of activity through signatures and disbursements with special attention paid to the implementation of operations in a context of significant macroeconomic deterioration due to the health crisis. This is part of a process of consolidation of achievements and management by 2022 through the disbursements and impacts of AFD financing, which should be reflected in the new contractual targets and resources (COM) being finalised. The AFD Group has set itself the target of reaching €10.8bn in signatures by 2021. The disbursement target for the AFD Group is set at €8.6bn, i.e. a disbursement ratio of 24.6%. This target for 2021 Ǿ stems from the growth in the Group’s signatures over the last two years and reflects the structural acceleration of the implementation of committed projects. The AFD Group will remain active in the health and education sectors in 2021, while the health crisis has put the education of hundreds of millions of children around the world, particularly girls, on hold. At the beginning of the year, the AFD Group will present its Social Link strategy, which will show, in the run-up to the Generation Equality Forum, the Group’s ambition to go even further on gender equality issues. The AFD Group will fully contribute to “Planet” issues by working within the France team to prepare for COP15 in Kunming on biodiversity and COP26 in Glasgow on climate. The priority given to Africa will be reaffirmed at the summit for the financing of African economies and at the Africa-France summit in Montpellier. The AFD Group’s transformation will accelerate in 2021. The integration of Expertise France, which was the subject of significant preparatory work in Ǿ 2020, will take place on 1 Ǿ July 2021. The company project launched in the autumn of Ǿ 2020 around eleven programmes will be fully implemented in 2021. The AFD Group will continue the major projects to modernise its information system. It will also make progress in its exemplary environmental and social approach. The reform of staff regulations will be another element of the transformation of the AFD Group in 2021. This year, AFD will also sign the purchase contract for its new head office, at Gare d’Austerlitz. Lastly, the AFD Group will step up its action in 2021 to publicise the usefulness and results of the development policy. AFD will continue to increase the number of projects assessed in 2021

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2020 UNIVERSAL REGISTRATION DOCUMENT