Annual Report - Agence Française de Développement

AFD2012 ACTIONSPROMOTINGTHE FRENCH OVERSEASPROVINCES’ DYNAMISMIn France’s overseas provinces, AFD servesas a partner to the public sector, providingconsulting services and financing. It alsoserves as a public bank for private-sectorenterprises, as a shareholder in socialhousing companies, as an engine for regionaleconomic integration, and as a creator ofknowledge.ASSISTING LOCAL POLICYMAKERSIn the French Overseas Provinces, AFD offers financialtools and consultancy services to those working to defineand implement local public policies. In 2012, publicsectorfinancing commitments reached €467 million;three-quarters of these funds were state-subsidizedloans. Several small towns on the Marquise Islands inFrench Polynesia have asked AFD to finance their annualbudgets for sustainable capital investments. AFD alsosupported multiyear investment programmes in largertowns, such as those in Reunion; nearly all cities receivedsubsidized loans in 2012. In addition, AFD advises onpublic investment policies.A PUBLIC BANK FOR THE PRIVATESECTORStrengthening local companies is a crucial developmentissue in France’s overseas provinces. More than in mainlandFrance, provincial businesses struggle becauseof their constant under-capitalization. AFD worksclosely with local banks and complements their efforts,responding to the weak business climate in the FrenchOverseas Provinces with financing made directly availableto private-sector companies or via OSEO, France’ssmall-business support agency. The value of such fundingalmost doubled in 2012, reaching the record amount of€1 billion.HOUSING AND URBAN DEVELOPMENTSocial housing, urban renewal, green residences – AFDmeets strong demand for housing and urban developmentwith a variety of capital investments. Alongsidelocal governments, AFD invests in seven propertycompanies on behalf of the French government and onits own account. These major social housing providersMartinique – A bus from the Fort-de-FranceLégende metropolitan area urban transportation networkmanage 74,000 units between them, including 3,300built in 2012. This represents 50% to 75% of subsidizedhousing in each province, and generates considerablebenefits for local economies.PROMOTING INTER-REGIONAL TRADEAND SOLIDARITYAFD assists public and private organizations in theFrench Overseas Provinces as they pursue projects withneighboring countries. Such assistance takes the form offinancial tools for businesses wishing to expand internationally.AFD also provides regional project finance andtechnical assistance for healthcare, biodiversity preservation,and solid waste management, among otherneeds. In 2012, the Agency took steps to systematize itsapproach, defining a regional cooperation strategy forfive French Overseas Provinces.ENRICHING KNOWLEDGE ABOUTOVERSEAS ISSUESAFD-conducted studies of the French OverseasProvinces analyze the implications of their social andeconomic changes, and consider each region’s particularities.AFD published several studies on humandevelopment and business in 2012. The Agency is alsoconducting economic analyses as part of its partnershipwith an umbrella organization, CEROM, comprised oflocal reserve banks; the French statistical agency, INSEE;and Pacific-region statistical agencies.32