AFD (France) Development Programs

The Agence Française de Développement (AFD) is France's public development bank
and a leading financier of cities and local governments, particularly across
Francophone Africa, the Mediterranean, and the wider MENA region. For many
municipalities it is one of the most accessible sources of urban and climate
finance.

WHAT AFD PRIORITISES
- CLIMATE AND ENVIRONMENT: AFD aligns its entire portfolio with the Paris
Agreement and funds adaptation, energy transition, water, and sustainable
mobility.
- SUSTAINABLE CITIES: urban infrastructure, services, and local-government
capacity — a core AFD specialism.
- SOCIAL INCLUSION AND COHESION: reducing inequality, supporting youth and women,
and strengthening basic services.
- GOVERNANCE AND LOCAL DEVELOPMENT: decentralisation and municipal financial
management.

HOW AFD WORKS
AFD offers a spectrum of instruments — sovereign and non-sovereign loans,
concessional finance, and grants, often blended together and frequently paired
with technical assistance to strengthen the institutions it finances. In some
contexts AFD can lend to or work directly with sub-national governments, which
makes it especially relevant for capable municipalities. Its grant facility
Expertise France delivers complementary capacity-building.

WHAT AFD EXPECTS
A credible climate rationale is increasingly decisive — projects should
demonstrate environmental benefit or, at minimum, climate consistency. AFD also
values local ownership, sound governance, and measurable social impact. Working
proficiency in French is a practical advantage in many partner countries.

HOW TO POSITION YOURSELF
Engage the AFD agency in your country to understand its current country strategy
and active sectors. Frame your project around climate and sustainable-cities
priorities, show institutional readiness, and be open to a blended package that
pairs investment with capacity support. AFD often funds the "soft" preparation
that helps municipalities become ready for larger investments.