AFD’s commitments hit the € 10bn mark in 2017

AFD Group’s activities around the world increases

AFD continues to increase the volume of its financing to implement global objectives such as the SDGs and Paris Climate Agreement. It has expanded its field of operations, working more closely with its partners not only in France, but also in Europe and around the world, in line with the French President, Mr Macron’s commitment. Africa continues to be AFD’s priority, with € 5.2 billion of commitments in 2017. Thus, the continent accounts for 50% of AFD Group’s total commitments in foreign countries and 80% of the French State’s financial effort.

As stated by AFD’s Chief Executive Officer, Mr Rémy Rioux: “2017 was marked by a rapid and ambitious increase in AFD’s financing: we have especially focused on strengthening our “non-sovereign” activity for civil society, local authorities and the private sector in the South, with an increase of € 5 billion (that is a 30% increase), including assistance to national and multilateral development banks, European institutions and large foundations. With a total of

€ 10.4 billion of commitments, AFD is continuing its growth path to support the major transitions in developing countries”.

 

Climate change high on its agenda

In 2017, over € 4 billion of financing was spent on the fight against climate change and its consequences, including some € 900 million allocated to adaptation projects. Over € 1 billion were earmarked for renewable energies in Africa. The international mobilization for the climate was further stepped up in December 2017 with the One Planet Summit in Paris in which AFD actively participated; which culminated in AFD’s contribution to several of the 12 commitments made at the summit, including responding to extreme events in Island States (commitment 1), protecting land and water against climate change (commitment 2) and the international mobilization of development banks (commitment 10).

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AFD currently active in the energy, agricultural and urban development sectors in Ghana

AFD is providing a non-sovereign loan of € 173.9 million to GRIDCO for the construction of a 330 kV line from Kumasi to Bolgatanga (replacing the existing 161 kV line) and a simultaneous upgrade of the Volta-Achimota-Mallam line around Accra.   In addition to that, AFD has also provided a sovereign loan of € 50 million, on-lent to VRA, for the retrofit of Kpong dam’s 4 turbines, allowing VRA to secure 160 MW of clean hydroelectricity for the next 30 years. The loan has also provided VRA with an efficient financial model. The last component of the loan is the funding of feasibility studies for a multi-purpose dam that would be installed in the Upper East Region (Pwalugu).

Under its Ghana Urban Management Pilot Programme (GUMPP), AFD is providing support to 3 Metropolitan Assemblies (Tamale, Kumasi and Sekondi-Takoradi) and the Ho Municipal Assembly, to enable them tackle some of the challenges of urbanization. Some of these priority investment projects are market infrastructures, abattoirs, a social centre, lorry parks, community upgrading, as well as street naming and addressing, spatial planning.

Additionally, AFD is providing € 37.5 million for the upgrade of major road and drainage infrastructures in Kumasi. The project will help to upgrade a section of the Kumasi Bypass road (nearly one kilometre), a section of the Lake Road (two kilometres) which is a major access road and a section of the downstream portion of the Aboabo drain (two kilometres).

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AFD has also been in the Agricultural sector with its supports to the development of oil palm and rubber plantations over the years. Currently, AFD is financing the fifth phase of the Rubber Outgrower Plantation Project (ROPP) with € 17.7 million non-sovereign loan to ADB. It is aimed at developing more than 18,000 ha of rubber plantations at the end of the project. It is based on a tripartite agreement between ADB, as the financial operator; GREL, as the technical operator; and ROAA (Rubber Out-growers and Agents Association) representing the interest of the farmers.

 

AFD’s perspectives in Ghana

AFD is now expanding its scope of activity by exploring new fields, with the aim of increasing the links between the North and the South, in both directions. AFD’s action in the field of governance is experiencing rapid growth, with over € 900 million of commitments in 2017.

Here in Ghana, AFD and the GoG are currently working together on State-Owned Enterprises’ corporate governance framework which will enable the latter to be eligible to borrow funds for development projects on their own balance sheet.

AFD is also developing its activities in the fields of cultural and creative arts industries, higher education, innovation and digital technologies, social business, and education in development and international solidarity. The French President has tasked it with building a platform for change through sport, with the aim of bringing the worlds of sport and financing for development closer together, with eyes on the Paris 2024 Olympic Games. AFD Accra is far advanced with preparations towards the identification of a new project in the area of the cultural and creative arts industry above mentioned.

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