AFD - 2018 Registration document

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PRESENTATION OF AFD

Activities of the Agence Française de Développement group in 2018

Activities using resources from other sponsors In terms of volume, these activities fell in 2018 (€0.43bn versus €0.57bn the previous year) despite a sustained effort to mobilise European funding and a strengthening of our relationships with bilateral partners, both of which should benefit the 2019 business plan. Virtually two-thirds of these approvals relied on European Union resources. The significant effort of AFD’s teams on the subject of guarantees received from the EU is also worthy of note (these guarantees are not included in the business plan achievements). 1.6.3.2 AFD French Overseas Departments and Collectivities AFD’s activities in French Overseas Departments and Collectivities levelled off in 2018. Approvals were effectively €1.36bn at the end of the year compared to €1.54bn during the 2017 financial year. Current activity (loans, guarantees and subsidies) was €0.87bn in 2018 compared to €1.00bn in 2017. Lending activity fell by -€0.16bn. The main reason for the gap was the worsening financial situation of public sector operators, particularly those in the regional collectivities. These problems led to a fall in public procurement which adversely affected investments in large- scale projects. The growth of subsidised green loans was largely due to the mechanism’s extension to all overseas territories, as in 2017 they were available only to Pacific territories. Mandate-specific operations - BPI, managed funds - remained relatively flat at €0.49bn despite an initial forecast of €0.6bn for 2018. 1.6.3.3 Proparco, foreign countries Proparco’s 2018 approvals stood at €1.65bn, up by 20% over 2017. Loan commitments were €1.25bn (an increase of €0.22bn or 22%).

AFD Group’s global activity reached €11.44bn of commitment approvals in 2018, an increase of €1.10bn on the 2017 figure and in line with the objective set by the French President of €12.70bn by 2020. Sovereign concessional loans and non-sovereign non- concessional loans account for the lion’s share of this increase with approvals of €5.13bn (+€1.13bn) and €1.80bn (+€0.53bn) respectively at the end of 2018. This more than made up for the -€0.32bn fall in non-sovereign concessional loans. 1.6.3.1 AFD, Foreign countries Ongoing operations Lending and guarantee activities were €7.53bn compared to €6.07bn in 2017. The number of loans exceeded the business plan targets, particularly in Sub-Saharan Africa. AFD continued to grow its non-sovereign activities in 2018. The value of non-sovereign loans was €2.13bn versus €1.92bn in 2017. The sovereign loan activity grew substantially to €5.13bn from €4.00bn in the previous year. Grant (1) approvals reached €0.58bn a 33% increase on the 2017 figure of €0.39bn. 2018 was marked by AFD continuing to increase its financing of civil society organisations (€83M in 2018 versus €72M in 2017). Over 80% of funding granted was invested in operations on the ground (most of which concerned Africa). Mandate-specific operations Mandate-specific activities fell with approvals of €0.31bn in 2018 compared to €0.52bn in 2017. This drop in approvals (€0.21bn) pertainedmainly toC2Ds (debt-reduction development contracts) with no new deal signed in 2018. However, C2Ds still account for two-thirds of mandate-specific activity.

(1) With the NGOs

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REGISTRATION DOCUMENT 2018