The Agence Française de Développement Group [fr]

The Agence Française de Développement Group (AFD) is a public and establishment which implements French foreign aid. It supports projects that concretely improve people’s daily lives by supporting the sectors defined as priorities for the countries in which it operates.

Present in Ethiopia since 1997 but active since 1993, AFD has been operating in Ethiopia with sovereign and non-sovereign loans, grants and bank guarantees to finance projects run by the State and local authorities, public or private companies, NGOs and the civil society.

AFD’s mission in Ethiopia is to support the national growth and transformation strategy of the country, which aims to become a middle-income country by 2025, focusing on strategic sectors for which its experience, knowledge to do and tools are required.

AFD’s goal: contributing to Ethiopia’s economic, social, urban and energy transitions.

Improving urban quality of life

Ethiopia experiences some of the fastest urbanization in Africa. AFD supports the sustainable and harmonious development of Ethiopian cities by financing:

-  The structuring and modernization of urban transport networks (implementation of the first Bus Rapid Transit line in the capital: fast, regular, priority buses with dedicated traffic lanes accessible to people with reduced mobility);
-  The Improvement of urban environment and access to improved hygiene conditions for local populations (modernization of the Addis Ababa abattoirs);
-  Access to water and sanitation services (after having strengthened the capacity of Addis Ababa drinking water plant, we support the Water Resources Development Fund (WRDF) to increase access to water and sanitation in 47 small and medium towns)
-  the renovation, valorization and / or accessibility of major sites of Ethiopian heritage

Making energy a driver of growth

Endowed with great potential for renewable energy, Ethiopia intends to exploit this asset and diversify its energy mix to promote its economic take-off and export electricity to neighboring countries.
AFD supports the development of the sector with:

-  the development of renewable energy generation from wind (co-financing of the country’s first wind farm, in the north, near Mekele) and geothermal sources (in Tendaho, Afar region);
-  The extension and optimization of the management of the national load dispatch centre (construction of four substations and installation of transmission lines around Addis Ababa; financing of a new control center of the national electricity grid to improve distribution, limit losses and provide residents with a stable power supply), with Ethiopian Electric Power (EEP);
-  The promotion of access to energy for all.

Enable private sector development and job creation

To complement its massive public investment strategy, the Ethiopian State is increasingly relying on non-State actors to take the lead on economic growth. To foster this transition, AFD supports or intends to supports:

-  the creation of an enabling environment for private sector development (partial funding of the Ethiopian economic reform program combined with a technical assistance program, focused in particular on the development of Public Private Partnerships and the reform of public enterprises, support to vocational training and capacity building ...)
-  Access to finance for SMEs and MFIs, notably through risk-sharing mechanism offered to local banks (Ariz and Euriz guarantees)
-  public companies, to promote their financial autonomy and their ability to contribute to development (support for Ethiopian Airlines for the modernization of the Ethiopian Airline Academy and the construction of a new airport terminal dedicated to freight);
-  the financing and support of private companies and financial institutions through its dedicated subsidiary, Proparco.

Improve the well-being of populations

In order for the economic growth and opportunities it generates to be inclusive and benefit the greatest number, AFD intends to foster the democratic and social transition of Ethiopia by supporting:

-  the structuring and strengthening of Ethiopian civil society
-  the promotion of decent work and social protection

Key figures

Between 1993 and 2018, AFD funded more than 50 development projects in Ethiopia, for which it committed 530 million euros, in the form of sovereign and non-sovereign loans, grants and guarantees. 45% of this funding was allocated to the urban sector, 30% to energy and 20% to the non-sovereign sector. Overall, it is estimated that these interventions benefit more than 2.5 million Ethiopians.

More about :

-  AFD : https://www.afd.fr
-  AFD’s activities in Ethiopia: https://www.afd.fr/en/page-region-pays/ethiopia
-  Our risk-sharing products and mechanisms: https://www.afd.fr/en/guarantees-instrument-mobilize-local-instruments
-  Proparco, AFD’s subsidiary for private sector : https://www.proparco.fr/

Contact

adress : Agence française de développement, Addis Ababa Agency
house 2077, block B118_33, street BL_03_632
B.P. 16978 – Addis Ababa – Ethiopia
e-mail : afdaddisabeba@afd.fr
phone : +251 116 39 29 95 / +251 116 39 29 02

Dernière modification : 03/06/2019

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