AFD - Universal Registration Document 2020

PRESENTATION OF AFD Activities of the Agence Française de Développement Group in 2020

(Health in Common) initiative was launched on 2 Ǿ April 2020 to finance projects in response to the Covid-19 pandemic, amounting to €150 Ǿ million in donations and €1 Ǿ billion in loans. This initiative aimed to provide an emergency response to the crisis and its economic and social consequences and to strengthen health and social systems over the longer term. The “Health in Common” initiative not only supports governments in their national response, but also civil society organisations, laboratories, public development banks and the private sector. Thanks to the mobilisation of trusted partners and the responsiveness of its teams, AFD has been able to build, with local and active players, an inclusive, adapted and country- specific solution. These interventions have notably contributed to financing national response plans to Covid-19 ( e.g. €7M in Burkina Faso to support diagnosis and treatment in hospitals), to investing in screening and care ( e.g. €1.5M for INSERM to strengthen diagnostic capacities in five African countries), to strengthening epidemiological surveillance networks ( e.g. €2M for reference laboratories in five South East Asia countries), to raising awareness of communities and individuals ( e.g. €2M for the NGO ALIMA to support community prevention and care in two African countries), to mitigating the social consequences of the crisis ( e.g. €40M in Rwanda for a budget loan to support social measures). At the end of December Ǿ 2020, 63 Ǿ projects had been initiated in 33 developing countries, mainly the priority countries for French official development assistance. At the end of December, 97% of funding had been committed. 85% of projects had been signed and 58% of disbursements made (including reallocations). In addition to the “Health in Common” initiative and in response to many countries, AFD granted several significant amounts of funding to help its partners cope with the health and social consequences of the Covid-19 epidemic. Financing for 15 Ǿ projects including a social protection component was granted between March and December Ǿ 2020 for an amount of €1.18bn in loans and €62M in grants. This support has often been carried out in collaboration with other donors, for example in Bangladesh where AFD has granted €150M to support the social response to the crisis, in conjunction with the World Bank. Despite the Covid-19 crisis, activity in health and social protection also continued with funding planned for non- Covid projects responding to the key issues of AFD’s strategic themes. For example, in Senegal, a grant of €8M was awarded to a consortium of NGOs to improve access to sexual and reproductive health and rights, particularly for young girls, through access to quality health services, as well as sexual and reproductive health education, aimed at reducing gender inequalities and related violence. Water and drainage accounted for 7% of commitments this year at €0.6bn compared to €0.9bn the previous year. The health crisis, which has delayed or even cancelled some operations, largely explains this decline. As in 2019, the main area of intervention in the water and sanitation sector is the Orients region, which accounted for 65% of grants for the year. Initial funding for projects has been granted in Uzbekistan and Albania. While Africa accounts for only 16% of the total amount of commitments in foreign countries, i.e. a historically low level, 61% of French State subsidies are concentrated there, with several operations in particularly fragile areas (Chad, Niger, Burkina Faso, DRC). A priority at the heart of AFD’s sector- based approach, several loans granted in 2020 will contribute to the improvement of governance and capacity-building.

affected, forcing the postponement of grants. These deferrals are not always possible, however, as debt capacity has been drastically reduced. In this very constrained context, the Group’s commitments in this sector are at an exceptionally low level. Despite the health situation and the postponement of a certain number of projects, the energy sector remained significant in the Group’s commitments. The year in 2020 was the first full year of implementation of the new strategy adopted in May Ǿ 2019, and all of its priorities were rolled out (increase in commitments in the field of access to electricity, the financing of a variety of private renewable energy projects or through green credit lines). With regard to energy efficiency, the preparation and support work carried out by the Programme on Energy Efficiency in Buildings (PEEB) continued. At the end of the year, a proposal was submitted to the Green Climate Fund to promote this PEEB approach on a larger scale in around fifteen countries. The year in 2020 also enabled the financing of “smart” network projects (€74M) and public policy loans (€270M), the latter being associated with structuring technical cooperation components, including the exchange of expertise between French and local players in the countries of operation. In 2020, the urban development activity was largely focused on the “three oceans” department with (i) Ǿ numerous loans to local authorities to finance their investment programme; (ii) Ǿ emergency financing to respond to the Covid-19 crisis in New Caledonia and French Polynesia, (iii) Ǿ a supplement to the contingency loan in Madagascar to deal with the consequences of the Covid-19 crisis; and (iv) Ǿ the financing of a multi-country programme to improve knowledge of the pollution caused by plastic waste and boost circular economy dynamics in the Indian Ocean. On the African continent, AFD granted (i) Ǿ a second loan to the Moroccan Communal Equipment Fund to facilitate the financing of investments by Moroccan municipalities to promote a better consideration of climate issues and a regional rebalancing, (ii) Ǿ the financing of a new phase of the programme to promote regional capitals in Cameroon, (iii) Ǿ a new guarantee product (with the support of the EU) - Cityriz - to guarantee loans for African local authorities among domestic public and commercial banks. In Latin America, AFD granted (i) Ǿ a non-sovereign loan to the Colombian municipality of Baranquilla to finance multi- year investments in the areas of biodiversity, the environment, risk management and social inclusion (ii) Ǿ the financing of the integrated development programme of the Brazilian municipality of Teresina, (iii) Ǿ a new line of credit to FINDETER in Colombia to finance investments in basic infrastructure in post-conflict territories. Lastly, in the Orients region, AFD granted funding for several projects and programmes, including: (i) Ǿ the Lahore heritage rehabilitation project in Pakistan, (ii) Ǿ the ecological revitalisation and heritage enhancement project in the district of Pingnan in China; (iii) Ǿ new funding for the multi-donor capacity- building and infrastructure-financing programme for Palestinian municipalities; (iv) Ǿ emergency financing for the reconstruction of Beirut. Thisyear, theproductionsector represented13%of commitments (€1.1bn), a slight decrease compared to 2019 (17%). The healthcare sector accounted for 12% of the commitments for the year, i.e. €1.03bn, an increase of almost €0.7bn compared to 2019. The year in 2020 was deeply marked by the Covid-19 crisis, which led AFD to adapt its activity to contribute to the global response to the Covid-19 epidemic, in line with France’s international commitments and the needs expressed by the countries where it operates. The “Covid-19-Santé en commun”

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2020 UNIVERSAL REGISTRATION DOCUMENT