The AFD is a Development Finance Institution which makes use of various financial instruments in accordance with policies implemented by South African to support and finance various projects.
The AFD group is also participating to “knowledge creation” developing research activities, reinforced by the allocation of funds for studies. The Financing of knowledge creation gives the group strength in its proposal in international debates on developmental issues.
The AFD Group has a range of tools available which support various types of risk and counterparties belonging to the public, semi-public or private sectors. The AFD supports the private sector when it relieves to support state policies and carries out tasks of public services. Proparco, an investment subsidiary of the AFD, has a mandate to exclusively finance the private sector and to support sustainable growth in developing countries. The AFD group as a whole always acts in a principle of subsidiarity, in addition to the local financial system, when this has no longer the means to support the economy.
Non-sovereign loans subsidized or not, shall be granted without State guarantee for the financing of projects that are part of our strategy at both national and regional levels.
The AFD assesses the financial situation and the risk of the borrower and defines an adapted financial scheme, tailored to the specific needs of each project. The international credit rating of AAA on long-term loans (the highest rating possible) allows AFD to grant loans on very favourable financial terms. These loans may be granted in euros, dollars or rands, with a dedicated maturity and grace period.
The AFD group also has the capacity to provide financial guarantees for public and private financial institutions which promote local development. AFD has a tool specifically designed to guarantee the support of Small and medium enterprise the ARIZ guarantee.
Shareholdings, in equity or quasi equity, are a tool Proparco uses to support the private sector by long term financial commitments. Proparco also intervenes with development investment funds.
The AFD grants are intended to fund the needs a project supposes: expertise requirements, feasibility studies and all the technical support.
The AFD hosts grants funds originally provided by the Ministry of Foreign Affairs:
• The French Fund for World Environment (FFWM) to finance assistance programs to protect the environment.
• The Capacity Reinforcement Program (CREP), to help countries to integrate into world trade.
Beyond its activity of financing development, AFD has become a centre of studies on strategies and developmental practices. The purpose of this activity is to contribute to international discussions and supporting sustainable development initiatives.
To strengthen research activities, the AFD provides funds for studies conceded to the strategic development actors (in South Africa and regionally) and thus allowing a better evaluation of the projects before and after its intervention.
These evaluations focus on the conditions, methods and impact of the projects implementation in which the AFD participates. These activities also bespeak the work done with its South African partners, with international development institutions and the civil society.
During the 2008-2009 period, the AFD group has participated in many actions of various kinds in the framework of his intellectual production activity.
The Johannesburg Agency hosted two major meetings on the themes of "Energy Efficiency in Urban Areas" and "urban planning, housing and social cohesion." Both seminars were an opportunity for important exchanges between France and South Africa around the developmental issues of urban areas.
AFD has also been involved in several research initiatives such as the training program APORDE, the Carbon Capture Initiative, which aims to reduce the carbon footprint of South Africa, or the international competition "Energy Efficient construction of social housing" which seeks to promote the emergence of new models of sustainable building, accessible and environmentally friendly.
Finally, strengthening the partnership with the DBSA has made possible the establishment of a vocational training program for executives of the African continent for the assembly, financing and managing infrastructure projects.
