AFD_REGISTRATION_DOCUMENT_2017

PRESENTATION OF AFD Activities of agence française debdeveloppement group in 2017

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Geographic breakdown of AFD approvals 2016 and 2017bapprovals, presented by beneficiary country, break down as follows:

GBS, subsidies and equity stakes – ongoing operations Guarantees granted

Loans

General

2017

2016 1,820 1,084 1,151 1,081

2017

2016

2017

2016

2017 2,917 1,432 1,143 1,035

2016 2,162 1,130 1,178 1,101

In millions of euros Sub-Saharan Africa

2,376 1,340 1,121 1,001

410

227

131

114

Mediterranean, Middle East

82 19 34 25

36 20 19 22

10

10

Asia and Pacific

3

6 2 0

Latin America and Caribbean Not geographically assignable

b

78

300

8

112

322

GRAND TOTAL

5,916

5,436

570

323

153

132

6,639

5,892

2%

Not geographically assignable

16%

Latin America and Caribbean

44%

17%

Sub-Saharan Africa

Asia and Pacific

21%

Mediterranean, Middle East

Agence Française de Développement’s commitment approvals in Sub-Saharan Africa reached €2.9bn in 2017, an increase of almost 35% on 2016. This amount exceeds the 2017bmulti-year objective, primarily due to the budget support loans granted to some CEMAC countries (€215M) and the €100M contribution to the CDC/AFD infrastructure fund. As a result, in 2017 Sub- Saharan Africa remained the priority zone for AFD intervention, accounting for 44% of the volumes approved in Foreign Countries. While continuing to focus on its key priorities which are energy and transport infrastructures, access to water and drainage, investment in training young people and developing rural areas, AFD pursued its crisis and vulnerability response, notably in Sahel, by mobilising funds from the Peace and Resilience Facility and increasingly looking to players on the ground, principally from civil society, for support. AFD’s activity in the Mediterranean and Middle East region grew significantly in 2017bwith financing of €1.4bn, up 27% on 2016, and a one-off budget subsidy of €430M for Iraq. This was primarily the result of AFD finding itself once again able to take action in Morocco (+58%) and Tunisia (+138%) thanks to the increase in its equity at the end of 2016. Activation of France’s commitment to support the macroeconomic stabilisation in Egypt and Iraq, as part of IMF programmes, also played a part. Finally, the institutional dynamic in Lebanon, leading to renewed sovereign loan activity and the launch of the SAWA initiative, translated into high activity levels in the Middle East.

Action to combat climate change is still a priority, be it mitigation (primarily in Morocco and Egypt through financing of the energy transition and public transport development) or adaptation in the water, waste and agriculture sectors (Jordan, Palestine, Lebanon, Morocco). In 2017, there was a focus on local development and territorial cohesion, a component of one third of the projects, through modernisation of farms in Tunisia, financing local authorities in Morocco or financing of reforestation and extremely labour- dependent small rural infrastructures in the regions of Lebanon most affected by the refugee crisis. The rationale behind this was to combat the feeling of downgrading in landlocked regions, both urban and rural, and encourage the creation of economic activity and employment. In terms of the financial tools mobilised, non-sovereign loans increased by 25% to €440M. The activity was rolled out in Morocco, Tunisia, Egypt, Turkey and Palestine, for private and public banks, to encourage them to direct their financing towards microfinance, the environment and renewable energies/energy efficiency as part of the SUNREF programme. 2017balso broke a new record of €188M in third party subsidies mobilised for the region, most of which came from the European Union. This mobilisation effort and the creation of the MINKA fund enabled AFD to raise a grand total of €250M in donations in 2017. AFD’s commitment approvals in Asia remained stable at €1.1bn in 2017. Most of AFD’s Asian operations were in the ASEAN countries, followed by South Asia. The activity in both these

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REGISTRATION DOCUMENT 2017

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