French development agency cuts back funding in Africa In 2025
The French Development Agency (AFD) significantly reduced its financial commitments in Africa in 2025, scaling back its interventions on the continent by nearly one third, according to statements made by its management this week.
Despite maintaining an overall investment volume comparable to the previous year, the agency redirected part of its resources amid major budgetary constraints. These reductions stem largely from cuts to France’s public development aid, which directly affects the agency’s capacity to support long-term projects, particularly in vulnerable regions.
Africa has been among the most affected areas, with funding allocations dropping sharply compared to 2024. The decline has also impacted the number of projects supported worldwide, as well as investments dedicated to climate action and sustainable development initiatives.
To cope with these constraints, the AFD has intensified efforts to diversify its sources of financing. The agency is increasingly seeking support from the European Union, private investors, philanthropic partners, and financial markets in order to preserve its development objectives.
While these alternative funding strategies have helped sustain certain social and infrastructure projects, AFD officials acknowledge that reduced public subsidies limit their ability to intervene in countries that rely exclusively on grants rather than loans.
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