AFD_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION Recent changes and future prospects

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5.1 RECENT CHANGES AND FUTURE PROSPECTS 5.1.1 Recent changes Activities

of partnership. One of the Group’s priorities in 2018bwill be to conclude the establishment of an IDFC climate facility and to contribute to the organisation of this club whose financial weight is greater than that of the multilateral development banks combined. In terms of operations and in order to continue to grow its activities, AFD Group’s target is to achieve €11bn of commitment approvals in 2018, which will represent an increase of 6% over P in line with the French President’s commitments (€23bn between 2017band 2021bfor the continent of Africa), and with the conclusions of the CICID in Novemberb2016 (prioritising French aid to Africa), the 2018bforecast for Sub-Saharan Africa is targeting activity of €3bn, in line with the multi-year target of €3bn per year for AFD (excluding Proparco), despite the environment for AFD’s activities being constrained by the sharply increasing level of general indebtedness and a reduction in debt reduction-development contracts (C2D) commitments. With the renewal of the Peace and Resilience Facility, expected subsidy resources should allow support to the least developed countries that are a priority for France, and particularly the Sahel countries, to be significantly increased. AFD will continue its contribution to France’s commitments to increase renewable energy financing in Africa to more than €3bn during the 2016-2020 period, by continuing to seek assignments of funds, in particular from the European Union and the Green Climate Fund; P in 2018, AFD’s operations in the Mediterranean and Middle East will continue to grow with a commitment approvals target of €1.6bn. AFD will support Tunisia in implementing its nationally-determined contribution (NDC), in accordance with their recent agreement. Following Morocco, Turkey, Jordan, Egypt and Tunisia are developing ambitious programmes to promote renewable energies. AFD will use all of the Group’s instruments to support them, whether through public-private partnership financing or support for preparing appropriate public policies. Particular emphasis will be placed on social inclusion and on incorporating gender inequality issues within projects. In 2018, actions to support improved governance will be reinforced, particularly in Morocco, Tunisia and Jordan, for issues in relation to justice, budgetary processes (gender aware budgeting) or public policies on employment; that achieved in 2017 (€10.3bn). Forecast operations by region:

AFD Group’s overall activity stood at more than €10.3bn in commitment approvals in 2017, representing an increase of around 10% compared with that achieved in 2016, confirming the continuation of the growth in activities embarked upon during the last two years, in line with the target set by the French President of reaching €12.7bn in 2020. Governance AFD’s governance system has not changed. 5.1.2 Future prospects The year 2018bwill be notable for new guidelines for French development policy being established. The Committee for International Cooperation and Development (CICID) meeting of 5bFebruary 2018bthus reflected the updated ambition supported by the French President of a target of 0.55% of GNI allocated to ADP in 2022. To achieve this ambition, AFD Group will adopt a new strategy at the beginning of 2018. In 2018, AFD Group will take operational measures in relation to its new Paris climate agreement implementation mandate. In accordance with its new Climate-Development strategy adopted in Novemberb2017, AFD has set itself the target that all projects financed should be consistent with long-term, low carbon and resilient development paths and will support, in parallel, preparation by countries of their low carbon development strategies required by the COPb21bdecision. Gender has also become a priority area of action for ADF Group. In order to support these new ambitions, AFD Group will define new operational priorities and will begin considering how to increase the resources devoted to the issue. In 2018, AFD will make helping the disadvantaged and responding to crises one its key areas of focus in partnership with stakeholders in the areas of diplomacy and defence. It will do this, in particular, within the framework of the Sahel Alliance, which AFD has been coordinating since 21bSeptember 2017. AFD Group is also reaching out to all stakeholders through the IDFC: the recent election of AFD’s Chief Executive Officer to the chair of this club firmly places 2018bunder the banner

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REGISTRATION DOCUMENT 2017

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