New agreements of cooperation were signed last week between the French Republic and the Ismaili Imamat. Rémy Rioux, Chief Executive Officer of Agence Française de Développement (AFD) Group, and Michael Kocher, General Manager of the Aga Khan Foundation (AKF), discuss the longstanding partnership and development priorities of France and AKDN.

Question: We are living through a complex moment in history, marked by a fragile global geopolitical context and increasingly tight state budgets – even as urgent needs persist across many regions of the developing world. France is at the forefront of efforts to reshape the financial architecture to meet these global challenges. How does your organisation position itself, and what is its vision in this context?

Rémy Rioux, AFD

In a global context marked by unprecedented geopolitical tensions and the abrupt withdrawal of major donors, AFD Group holds a strong conviction: the development model – that of official development assistance (ODA) – built 50 years ago is being called into question; we must update methods, funding sources, priorities, and metrics to assess effectiveness and promote sustainable development investments. Although we had reached a historic high in ODA since 2015, with $225 billion in annual aid, the ODA model now faces a loss of $60 billion – two-thirds from the United States, one-third from Europe – due to budget constraints but also political shifts.

This is why AFD Group contributes on behalf of France to rebuilding international financing architecture. The FfD4 meeting in Seville was a key moment for dialogue and collective mobilisation supporting the inclusive, sustainable investment model we advocate, going beyond ODA to align the interests of the French people with those of our partners by fostering the role of the 530 public development banks gathered in the Finance in Common System (FiCS).

We aim to show that international partnerships remain an essential lever for shared prosperity in the face of global challenges. This momentum is now firmly embedded in the Seville Outcome Document, which consolidates the role of Public Development Banks (PDBs) within the international financial architecture: paragraph 30 acknowledges the role of national development banks in aligning finance with country-owned strategies and development priorities, and paragraph 37 explicitly references FiCS as the global platform fostering collaboration among multilateral, regional, and national development banks.

These developments confirm that PDBs are now seen as one of the core pillars of a more effective, inclusive, and sustainable financial system.

Michael Kocher, AKDN

The last five years have brought multiple shocks to the global system, with echoes in far regions of the planet. The pandemic had dramatically different effects on people and economies in the North and South, with many developing countries yet to recover. War in Europe and the Middle East, combined with the expansion of conflicts in Africa, has damaged the global economy even more, leaving countries strained by high inflation, many in or near debt distress, and stretched beyond their means. It is inevitable that trade-offs have to be made, in both the North and the South.

In this, France has been admirably forthright: making it clear that a strong majority of the French public supports development assistance and that the cuts it has to make are temporary, dictated by extraordinary circumstances that require joint sacrifice. That is an important message, because it underscores that France is still committed to development, still committed to its partners in the developing world, still guided by a deep sense of responsibility and solidarity to help countries adjust to the climate transition, protect biodiversity, and assist the most vulnerable.

In this changing landscape of international development, I think the future has to be one defined by partnerships. We need to find ways to make development funds go farther, and that means using them to catalyse partnerships and investments with others. We also know that this just makes the work better and more effective – when the partnerships are genuine, respectful, and put the needs of countries and communities first. So at this moment, public-private partnerships are going to be more important than ever. International development finance institutions like AFD, partnering with governments, national development banks, and locally-based institutions like AKDN’s, will become even more common.

Question: What are your institution’s development priorities?

Rémy Rioux, AFD

AFD Group has set out a clear and ambitious 2025-2030 strategy to build a more sustainable, equitable, and inclusive world, in line with France’s vision for international development, the UN Sustainable Development Goals (SDGs), the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework. At its heart is a strong commitment to tackling inequalities and advancing sustainable development through an integrated approach that combines support for human development, gender equality, biodiversity protection, and climate mitigation and adaptation.

It also prioritises local ownership by deepening collaborations with partner countries, strengthening national institutions, and aligning with national development plans in a spirit of mutual respect.

AFD emphasises shared innovation through knowledge exchange, with research, innovation, and digital transformation as key enablers.

Mobilising finance and partners is a core objective, channelling more and better-quality public and private capital toward the SDGs, climate action, and biodiversity, notably by cofinancing. Last year, 42 percent of the projects financed by AFD were cofinanced.

Michael Kocher, AKDN

Against this difficult global backdrop, His Highness the Aga Khan V assumed his responsibilities in February 2025. Almost immediately, he reconfirmed the commitment of the Ismaili Imamat and AKDN to the countries we are working with and the institutions we have built to underpin long-term development and stability. That institutional approach is fundamental, improving the quality of life, promoting pluralism, enhancing self-reliance. Those institutions are engines of human and economic development, but can also act as “shock absorbers” in times of difficulty.

Yet even as we remain determined to stay the course, His Highness has also charged us with doing even more to help countries and communities address the climate crisis – mitigating emissions where we can and adapting to its effects where we must.

Because climate pressures also disturb economies and livelihoods, they are driving – and will drive even more – internal displacement and migration, so we will also begin designing programmes to help displaced people rebuild their lives, while at the same time we assist their host communities.

Finally, we are all too familiar these days with how divided contemporary societies seem and the real effects this can have, especially in the most fragile environments where resources are scarce and resentments are high. Reinforcing pluralism has to be a priority. Our work to improve the quality of life for all people, regardless of faith, sex, or background, is all the more vital for bringing people and communities together. That is why we continue to expand our work with thousands of communities in Afghanistan, Northern Mozambique, Syria, and everywhere else we are present.

Question: What makes the partnership between AFD and AKDN so worthwhile?

Rémy Rioux, AFD

For over 35 years, AKDN and AFD Group, starting from our first partnerships with the Aga Khan Fund for Economic Development, have shared strategic objectives: to protect the planet, reduce inequalities – including gender inequality – and improve access to essential goods such as health, infrastructure, finance and education, with a common view on the role of culture in development. It is the oldest partnership of AFD with a philanthropic organisation.

Today, the partnership between AFD Group and AKDN fully reflects the spirit of SDG17, which promotes alliances that go beyond transactional cooperation to advance the broader SDG agenda. Together, we reaffirm our commitment to international cooperation, convinced of the critical role public, private and philanthropic partnerships play in financing sustainable development. Together, we have supported climate change adaptation in the Gilgit-Baltistan province of Pakistan through a multi-year initiative that will help several hundred villages understand and map their risks and choose appropriate mitigation measures. We have also jointly supported the East Africa Comprehensive Cancer Project through a €6 million grant to extend the quality of, access to and capacity for integrated management of women's cancers in East Africa.

Our collaboration now enables us to expand into new regions, with additional funding and priorities. We benefit from AKDN’s technical expertise, local networks, and capacity for advocacy and financing to design innovative, sustainable responses to challenges in the most vulnerable countries, fostering more inclusive policy dialogue, creative approaches to planning and implementation, and better outcomes for those most in need.

Michael Kocher, AKDN

The first thing to say about the partnership is how deep and varied it has been – and remains – across the AFD Group. We are working with both Proparco and AFD across so many sectors: agricultural and food security, energy, financial services and tourism, but also health and education, nutrition, culture and climate adaptation. The range of countries is broad as well: Afghanistan, Cote d’Ivoire, Kenya, Mozambique, Madagascar, Pakistan, Rwanda, Tajikistan, Tanzania and Uganda.

Some of these have been fairly conventional partnerships or deals – equity investments or loans to businesses we run on a for-profit, but for-development basis, reinvesting our proceeds back into the work, or grants for development projects that are co-financed and implemented with our agencies. But most of them have been quite innovative, pushing the boundaries of how development finance can be used to maximise development outcomes.

Let me give a couple of examples.

Almost 15 years ago, Aga Khan University and Aga Khan Health Services wanted to upgrade their facilities and expand their outreach in Kenya and Tanzania. These not-for-profit hospitals charge user fees and so do have some revenues that can support loan repayments. But they also have a deep commitment to patient welfare and ensuring access for those who can’t afford the fees – as well as providing services in many cases to the public health system.

With AFD, we designed a performance-based loan that linked the interest rate to development impact targets. As long as the cancer centre we were building provided a certain number of subsidised services to poor patients, among other indicators, the interest rate would remain concessional; but if we failed to meet the impact targets, the rate would go up. We have now used that model for other loans that helped us expand services significantly in Nairobi, Mombasa, Kisumu, and Dar es Salaam – while AFD has applied what it has learned about outcome-based lending and blended finance to other transactions and its wider strategy.

Or take another example, this one in Pakistan, for climate change adaptation, which underscores the possibilities of another public-private approach. The mountainous Northern Areas of Pakistan are deeply vulnerable to climate change. Rising temperatures affect glacial melt, causing flooding, landslides, and other hazards, as well as affecting agricultural seasons, crop yields, and the livelihoods more than half the population depend on. Working with local authorities in Gilgit-Baltistan, along with AFD we have helped design a multi-year initiative that will help several hundred villages understand and map their risks, choose appropriate mitigation measures, engage with district and provincial authorities to approve the plans, get the funding and do the works.

Once the final signatures are in place, AFD will make a sovereign loan to the Government of Pakistan, which will be accompanied by co-financing from the European Union. That will then be on-granted to AKF to work with the Government of Gilgit-Baltistan to conduct the outreach across all the villages, help facilitate the planning process with provincial officials, and assist with implementing the projects. This $56 million project will help protect hundreds of villages with boundary walls, irrigation channels and flood prevention, as well as directly reaching over 400,000 people with access to clean energy, stronger homes, and clean drinking water. Critically, the communities themselves are co-investing in this work along with AFD, the Pakistani Government and AKF. Our experience over almost 50 years shows that when communities are involved this way, some 90 percent of the infrastructure that we have helped communities is maintained and still in use. That is what true partnerships can do.

My last point: doing anything different or out of the ordinary in any bureaucracy is difficult. But these examples show why we work so well with AFD. Like us, they can focus on the long term and their people are willing to take risks – and the time – to do what is needed and what is right. That is the spirit of our partnership and why we have such deep appreciation for Rémy and his colleagues.

Question: What are your aspirations for future collaboration between AFD and AKDN?

Rémy Rioux, AFD

Since signing the framework partnership agreement in 2008 with His Late Highness Aga Khan IV, our relationship has been highly fruitful, with nearly $500 million in financing over 15 years across sectors using AFD Group’s full range of instruments – grants, equity, loans, and delegated soft financing – making it a unique partnership.

Looking ahead, we seek to focus our collaboration on strategic priorities. Climate and biodiversity are central: we share a sense of urgency to address climate change, protect oceans, and promote biodiversity, creating opportunities for joint action in reforestation, clean energy, water conservation, the green and blue economies, and eco-friendly construction. Health, gender equality, and sexual and reproductive rights remain critical, with a shared commitment to maternal, newborn and child health, stronger systems and tackling climate impacts on health. Agriculture, food security, and nutrition are also key to support greener practices and resilient value chains. Disaster resilience and sustainable housing, including green building, complete this agenda. Digital transformation, especially in health services, is another joint lever.

We plan to expand our cooperation into new regions such as the French Overseas Territories, and notably Mayotte, the Middle East and Madagascar, while consolidating existing partnerships. Two flagship projects illustrate this ambition: the Indian Ocean Coastal Regenerative Initiative, which will include Mayotte, following the momentum of the UN Ocean Conference in Nice; and reconstruction in Syria. Lastly, we encourage AKDN’s participation in major international events led by France, including the G7 in 2026.

Michael Kocher, AKDN

There is a lot to be excited about. Yes, the global situation is challenging – but the needs in the countries we serve are urgent. And despite some of the budgetary constraints, the AFD Group still has enormous resources, ingenuity and commitment. There is much we can do together – and a long list of things we are exploring.

Perhaps top of the list is collaborating in the Indian Ocean. This week we will sign a joint declaration of our intention to mobilise €100 million to regenerate coastal communities, build sustainable blue economies and livelihoods, and contribute to ocean protection. Because the French department of Mayotte has just been devastated by Cyclone Chido, we will include it in a wider Indian Ocean Coastal Regeneration Initiative that will also cover Kenya, Madagascar, Mozambique and Tanzania. We will be working together over the next several months to define the specific projects we will start with in Mayotte, Tanzania, and Madagascar, with hopes to expand in the future.

That’s very exciting for us. It aligns perfectly with His Highness’s ambition to make a difference at scale for the people and communities that are most affected by climate change and it builds on the strong momentum coming out of the UN Oceans Conference in Nice, which France just hosted.

We have also been discussing what we can do together in Syria to help with its recovery and reconstruction. After 12 years of civil war, the needs are enormous. France has been a strong voice for engagement and assistance, to give the new authorities a chance to prove themselves. We think that is just the right approach.

AKDN has been present in Syria since the late 1990s, with a large programme in western and central Syria. We have largely focused on humanitarian relief during the civil war, but there is an opportunity now to scale up significantly to meet the needs of the Syrian people. We are exploring ways we might work together in emergency livelihoods and stabilisation, health and culture. I hope we will be in a position to announce something more definite later this year.