AFD - 2018 Registration document

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PRESENTATION OF AFD

Activities of the Agence Française de Développement group in 2018

❙ Loans, provisions and guarantees given on its own behalf, by product

Approvals

Variance 2018/2017

2017

€M

%

2018

In millions of euros

Ongoing operations

822 821 688 322 366 133

985 981 842 229 613 139 139

-163 -159 -154

-17% -16% -18% 41% -40%

Loans

Public sector

Subsidised loans to local authorities

93

Other loans – public sector

-247

Private sector

-5

-4%

Direct financing

83 50

-55

-40%

Banks

0 2 2 0 0 0 2 0

50 -2 -1

Mayotte subsidy

0 1 0 0 0 1 0

100%

Guarantees (1)

Guarantees granted to the public sector Guarantees granted to the banking sector French Overseas Department Fund SPM and Mayotte guarantee funds

0 0 0

-1

Equity stakes 0 (1) The guarantees presented above do not include Sogefom approvals (€31.6M in 2018) and FOGAP approvals (€1.16M in 2018)

1.6.6 Intellectual output 1.6.6.1 Research, training and publication activities The focus of research work was the POS IV commitments, revolving around three priority themes:

While private sector activity was relatively stable (€133M in 2018 and €139M in 2017), commitments fell significantly in the public sector. Loans to the public sector fell €154M to €688M at the end of 2018, i.e. a drop of 18%. The drop affected equally loans to local authorities and all other public sector loans. Despite a difficult economic situation for public sector operators, in particular the local authorities whose borrowing capacity - and therefore investments - fell significantly, commitment volumes in this sector were €688M. Subsidised loan activity grew significantly to €322M of which €103M was granted to the equivalent Pacific Green Fund (PSP Vert). This growth was largely due to the facility being extended to all overseas territories (in 2017 they were available only to Pacific territories). As a result, this allowed additional support for projects linked to waste treatment and the medico-social sector. In the private sector, loans granted to firms came to €133M. These satisfactory results generated renewed refinancing activity in the banking sector (Bank PCM) to the tune of €50M. Loan commitments to private firms were down at €83M due to particularly tough competition in the world of finance, the postponement of several long-gestation projects and the decision not to follow through a funding request further to an unfavourable opinion handed down by the risks division.

P solidarity and human development; P governance, the commons and regions; P climate, energy and natural resources.

The Sahel received special attention with a research project centred on four areas: the population outlook, informal education, social inclusion and informal education, and governance, agro- ecology and the climate. Research work into solidarity and social ties will foster and support the operational implementation of this, one of AFD’s key commitments. The work favours an inclusive approach, particularly in terms of the employment market and access to social protection, with a geographical focus on the Sahel and Latin America. Alongside this, a study conducted in Colombia will look at the link between the 100% social ties commitment and the 100% climate commitment. Migration research will primarily be based on the OECD’s (1) DIOC. Studies on the education, training, employment continuum will focus on informal education such as Arab-Islamic teaching in the Sahel countries. On the theme of Governance, the commons and territories, AFD is following up the recommendations for operational implementation which emerged during the 2018 “Sprint sur les commons” initiative: (i) reproduction and distribution of the “commonland” game – designed to help teams appropriate the theme of common assets – possibly with an irrigation angle, (ii) creation of a digital platform to collate shared experiences of

(1) Immigrants in the OECD database

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www.afd.fr

REGISTRATION DOCUMENT 2018