Agence Française de Développement (AFD) to increase its financial support in South Africa
Media Statement from the French Development Agency in South Africa - 8 March 2017
AFD, the French government’s Development bank, has recently approved its operational strategy for South Africa which forecasts an increase in financing and intensified technical cooperation.
AFD has set three goals for its actions for 2017-2020:
Sustainable and inclusive urban development
Support for South Africa’s energy transition, and
Vocational training and access to higher education for disadvantaged youth, to create a better access to job opportunities.
Enhancing social cohesion and combating climate change are paramount to the strategy, and AFD will seek to maximise both these aspects in the projects and programs it finances. AFD will in particular target projects with high social impact, which create jobs and contribute to a reduction in inequalities pertaining to gender, income, access to basic services and opportunities.
AFD plans to address territorial inequalities and allocate a significant portion of its financing to support a balanced and sustainable urban development within large cities but also to secondary cities and less developed provinces. These projects will contribute to improved provision of basic services and development of urban transport and social housing for instance. AFD will also directly support state-owned enterprises to finance their transition to sustainability. Contributing to unemployment reduction is a new pillar of AFD, which is exploring ways to support improved environment and access to vocational training and higher education.
“We’ve committed more than €2,3 billion in loans since we started operations in South Africa in 1994 with 44% dedicated to improvement in access to basic services and 55% dedicated to the fight against climate change; we’re excited about continuing financing sustainable development projects in South Africa.” Martha Stein Sochas, Regional Director for AFD in Southern Africa.
AFD’s activity to the order of €1, 3 billion over 5 years will include non-sovereign loans, grants for capacity building and technical assistance, and guarantees (or credit enhancement).
AFD, the French Development Agency, is committed to partnering with South Africa to achieve sustainable development by financing initiatives that will enhance South Africa’s development goals. Click here to find out more about the AFD in South Africa.
For more information:
Mandisa Mbele, Communication Officer,