![The French Development Agency recognizes a decline in activity in Africa The French Development Agency recognizes a decline in activity in Africa](https://media.lesechos.com/api/v1/images/view/6643843eba8e4625425c6109/1280x720/090393597602-web-tete.jpg)
“It is undeniable that we have had less activity in Africa even if this area remains a priority for us.” Presenting the results of the French Development Agency (AFD), Rémy Rioux, its general director, conceded, during a press briefing, an African setback even if, he said, “I observe that Proparco and Expertise France recorded record results there.
The reduced activity of the AFD results from several factors. Some States are in a situation of over-indebtedness, which limits requests for new loans from AFD by public entities. “State debt pushes us to grant more donations,” explains Marie Hélène Loison. But this alternative is limited and severely regulated. It can only concern highly indebted poor countries within the framework of a debt reduction and development contract signed with the agency.
Bank Withdrawal
On the private sector side, “it is difficult to intervene in Africa”, noted during this press briefing, Philippe Gautier, the general director of Medef International. “We are seeing the withdrawal of many international banks from the continent. Instruments for hedging corporate financial risks are lacking and the exchange risk is real,” he added.
Several avenues are being studied. The mobilization of local actors, particularly at the level of local authorities, is one of them. The creation of a guarantee mechanism, currently being discussed with the European Commission and the European Investment Bank, is another.
If the AFD has continued to intervene in its historical regions such as African countries, it has extended its scope of action in the Indo-Pacific. While Emmanuel Macron made a trip to the region last year, three new locations in Papua New Guinea, Vanuatu and Fiji were opened. Its activities have also been strengthened in Central Asia (Uzbekistan, Kazakhstan) and Mongolia.
Result: Asia and the Middle East mobilized 30% of new financing authorizations for AFD last year (3.9 billion euros). Africa remains in the lead with 38% (5 billion) but sees its share decrease compared to 2022 (44.8% with 4.3 billion)
Despite international geopolitical instability, the AFD group ended the year 2023 with increasing results. In total, 13.5 billion euros of new financing was granted compared to 12.3 billion the previous year. The 2019 record (14 billion) has not been beaten.
The volume of new projects signed last year (more than 1,000) amounted to 11.4 billion euros. Of this total, 2.7 billion euros were directed to the private sector, with the Proparco subsidiary, and nearly 600 million euros were dedicated to technical cooperation through the activity of Expertise France.
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“Today, there are 3,600 projects being implemented for the 160 countries in which the group operates,” commented Marie-Hélène Loison, Deputy Director General of AFD.
According to the agency, its programs have enabled more than 70 million people to improve their access to health care while 4,000 km of interurban land routes have been created or rehabilitated. A total of 33 million hectares have benefited from conservation or restoration programs for terrestrial biodiversity. On the climate front, AFD estimates that the emission of 2.7 million tonnes of CO2 could be avoided each year thanks to its projects.