Our objectives for a result oriented cooperation
a) Local basic infrastructures
From 1994 to 2007, in partnership with DBSA (Development Bank of Southern Africa) and INCA (Infrastructure Finance Corporation Limited), AFD invested nearly 300 million Euros to develop basic local infrastructures. It also provided direct funding to large municipalities, such as Johannesburg and eThekwini (Durban). Bolstered by its first successes, it now intends to support smaller municipalities.
The project, entitled Operation Gcin’amanzi (“water conservation” in Zulu) involved measures for the improvement of water supply services to the 162,000 household units in the Soweto Township. The project included: the reparation of aging pipelines, installation of new pipelines, improvement of technical and commercial information systems, installation of prepaid water meters, and education of consumers on the importance of water conservation and also on their rights and responsibilities. Read more
b) Affordable housing
AFD has accompanied three South African banks to provide housing loans to low-income households. It will further contribute to this objective by funding public institutions and corporations and by supporting local and provincial governments’ housing programmes.
c) Capacities in local governments
A joint AFD/INCA fund has financed the specialised training of 3 000 municipal managers and counsellors. From 2000 to 2008, a hundred municipal counsellors or managers also went on an annual study tour to France.
a) Supporting the Broad Based Black Economic Empowerment
Since 1994, AFD and Proparco have committed over 120 million Euros to incite South African financial institutions to further support small and medium BEE enterprises.
Finance SMEs belonging to historically disadvantaged communities
Carried out in partnership with Standard Bank, the first South African bank on the SME market, the project aimed at setting up a mechanism that reduced the risks of the bank to provide financing and services to SMEs belonging to historically disadvantaged communities (black SME). AFD granted a credit line of 20 million euros intended to refinance lending operations to black SMEs.Read more
b) Supporting professional training in priority sectors
AFD is a partner of Edu-Loan, a further education loan provider which currently supports close to 500 000 students.
In 2010, DBSA and AFD introduced a master’s degree in development studies, open to 100 persons every year.
c) Supporting the South African productive sector
AFD supports South African economic growth by funding large infrastructure programs which are key to the economic development of the country. This includes projects in the fields of transport, telecommunication, energy, bulk water etc.
AFD partnered, for instance, with ACSA (Airport Corporation of South Africa) to finance the extension of Johannesburg International Airport.
a) Green local policies
AFD and its South African partners contribute to the mitigation of global warming by promoting sustainable energy policies and promoting a better energy mix.
AFD prioritises the protection of environment in all its infrastructure projects. Energy efficiency is, for instance, at the core of its approach to urban development.
It will make a credit facility of 100 million Euros available to the main South African banks to boost their investments in the Energy Efficiency sector. This initiative will facilitate the financing of small and medium size private green projects. Read more
In partnership with South African National Parks, AFD and the French Global Environment Fund (FFEM) support the Addo Elephant Park and the Table Mountain Park in their endeavours to protect natural resources and to foster the socio-economic development of local communities. Read more
c) Innovation against global warming
Durban and AFD have partnered to build a landfill gas-to-electricity plant. This innovative initiative was the first Clean Development Mechanism implemented in South Africa.
AFD provides technical assistance to the Central Energy Fund, a public agency which designs and funds sustainable energy projects.Read more
South Africa is a country with high energy intensity and a major emitter of greenhouse gases (GHG). The South African government has set global targets for promoting renewable energy and energy efficiency. Carbon Capture and Storage (CCS) is seen as a transitional measure that will maintain South Africa’s energy supply while limiting its emissions of greenhouse gases. Financing the South African "Carbon Capture and Storage Centre" research facility contributes to the fight against global warming and therefore to the protection of Global Public Goods, one of the strategic priorities of the AFD Group.Read more
Encouraging Regional Integration
AFD fosters regional integration on the African continent, with a specific focus on the SADC countries.
It supports regional infrastructure projects, including NEPAD’s projects, in energy, transportation and telecom.
DBSA and AFD co-finance a Project Preparation Fund of 7,4 million Euros. Several regional projects assessed thanks to this fund are now entering in their financing phase.
AFD is funding feasibility studies of several electricity interconnection projects within the scope of the Southern African Power Pool.
AFD also supports South African financial institutions’ regional projects.
Financing the Eassy broadband cable
Less than 5% of the African population has access to broadband network. The EASSy cable is a key project in the NEPAD connectivity plan. It is the East-African submarine fiber optic cable from Port Sudan to Durban via Djibouti, Mogadishu, Mombasa, Dar es Salaam and Maputo with an open access principle. The AFD granted a 9,5 M USD loan for the creation of a SPV funded by telecom operators, and a pool of donors that is the major co-owner of the Consortium EASSy which manages the cable infrastructure. The cable has landed in Kwazulu natal in June 2010.
Promoting democratic governance
Within the space of few years, the new South Africa has achieved an impressive democratic transition. France has continuously supported this process and still contributes to the strengthening of democratic governance. At the local level, service delivery, social cohesion and respect of human rights are sometimes hampered by poor governance and lack of public participation.
This is why the French Embassy’s Civil Society Development Fund supports the participation of Civil Society Organizations in local governance.
Every year, 200 000 Euros are granted to selected organizations that contribute to local public policies, strengthen the accountability of local governments and advocate the interests of marginalized communities.
French support to democratic governance also includes cooperation with the South African Police Service in its endeavour to fight crime more effectively, in accordance with the democratic laws and values of South Africa. Training and experience sharing are provided by the French police, including on stadiums’ security for the 2010 World Cup.