IDB and AFD pledge to enhance co-financing for Latin America and the Caribbean

The Inter-American Development Bank (IDB) President Luis Alberto Moreno and Agence Française de Développement (AFD) CEO Rémy Rioux signed a partnership framework agreement to enhance co-financing of projects which sets the target to reach at least US$1 billion co-financing over the next three years. This agreement effectively builds upon the IDB-AFD partnership formalized in 2015.

In this new agreement, the IDB and AFD commit to further mobilize both knowledge and financial resources for projects promoting sustainable development and poverty alleviation. It aims to deepen cooperation related to global public goods and efforts to fight climate change, which are joint strategic priorities for both institutions.

Building upon an active track record of co-financing projects, the partners intend to help LAC countries translate climate objectives into national and regional planning strategies and implement them at the sector level in pursuit of the Sustainable Development Goals and the objectives of the Paris Climate Agreement.

The signing follows a public announcement by French President Emmanuel Macron pledging to increase France’s public development assistance from 0.38% of GDP in 2016 to 0.55% by the end of 2022, deepening the scope of financing opportunities in LAC in partnership with the IDB.

“The partnership with IDB is crucial for us to support the region in its efforts to transition to a low carbon and resilient economy, in line with the Paris Climate Agreement. IDB and AFD teams have done great work over the last couple of years to scale up our cooperation on the ground. I am glad today to open a new phase of this collaboration alongside President Moreno,” said AFD CEO, Rémy Rioux.   

IDB President Luis Alberto Moreno: “The IDB wants to build strategic alliances with French development actors such as the AFD Group, which has become one of our most active co-financing partners. This agreement will strengthen our collective ability to create innovative financial instruments and to do pioneering work in fighting climate change and other challenges Latin America and the Caribbean are facing.”

The agreement was formalized in the context of the 2018 International Monetary Fund and World Bank Meetings in Bali.

About AFD

AFD is France’s inclusive public development bank. It commits financing and technical assistance to projects that genuinely improve everyday life, both in developing and emerging countries and in the French overseas territories. Our action is fully in line with the Sustainable Development Goals (SDGs). Through its network of 85 agencies, AFD operates in 109 countries, where it is currently financing, supervising and supporting over 3,600 development projects. In Latin America and the Caribbean, AFD pursues a strategy of green and inclusive growth which preserves the environment and reduces social inequality.

About the IDB

The Inter-American Development Bank is dedicated to improving lives. Founded in 1959, the IDB is the main source of long-term financing for the economic, social and institutional development of Latin America and the Caribbean. The IDB also conducts advanced research and provides policy advice, technical assistance and training to public and private sector clients in the region.

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Daniel Hincapié
IDB Team Leader