France cuts African development aid as overseas territories gain priority

Wednesday 17 December 2025 - 10:50

By: Dakir Madiha

France cuts African development aid as overseas territories gain priority

France’s development agency, AFD, has reduced its budget for Africa to €4 billion ($4.703 billion) in 2025, down from €6 billion ($7.054 billion) in 2024, marking a significant shift in priorities amidst broader cuts to the nation’s aid funding. While AFD managed to maintain overall investment commitments at €13.7 billion ($16.107 billion), the reallocation reflects a strategic realignment of resources as the agency faces mounting fiscal constraints.

Stable budget masks shifting priorities

AFD’s total commitments remained unchanged from 2024 levels, despite a steep €2 billion ($2.351 billion) cut to France’s Official Development Assistance (ODA) budget. This reduction approximately one-third of France’s total aid has forced the agency to prioritize investments, with Africa bearing the brunt. Further cuts are anticipated in 2026, with an additional €700 million ($822.98 million) expected to be slashed from the ODA budget.

The agency’s portfolio reflects these pressures, with the number of financed projects falling from 1,250 in 2024 to around 1,000 this year. Climate-related investments also saw a slight decrease, dropping from €7.7 billion ($9.063 billion) to €7.4 billion ($8.699 billion).

Africa funding slashed, overseas territories benefit

The most notable change is the steep reduction in funding for Africa, which dropped by one-third in 2025. AFD allocated €4 billion ($4.703 billion) to the continent this year, compared to €6 billion ($7.054 billion) in 2024. Despite this, the agency emphasized that the cuts reflect a rebalancing of resources rather than a withdrawal from the region.

Meanwhile, France’s overseas territories experienced a 17% increase in funding, driven by urgent needs. AFD played a critical role in reconstruction efforts in Mayotte after Cyclone Chido and provided an €800 million state-guaranteed loan to New Caledonia, which faced severe economic strain following violent unrest in 2024.

Adapting to growing constraints

AFD’s chief executive, Rémy Rioux, highlighted the agency’s efforts to maintain its development ambitions despite reduced public funding. To compensate, AFD is increasingly turning to alternative financing sources, including European Union funding, private partnerships, philanthropic investments, and bond issuance on international markets.

Rioux acknowledged the challenges posed by shrinking resources, particularly for the world’s poorest countries that rely heavily on grants rather than loans. Nevertheless, he pointed to the tangible impact of AFD’s projects, which in 2025 are expected to improve healthcare access for 3.5 million people and enhance urban transport services for 1.5 million.

The agency’s final financial results for 2025 will be published in the first half of 2026.