Strengthening AFD's action in the South Caucasus
Azerbaijan is the biggest and most populated of the three South Caucasus countries. Thanks to its hydrocarbons, the country experienced strong growth during the 2000s. Poverty and inequality decreased, but significant regional gaps remain, all the more so because the fall in hydrocarbon prices is penalizing the country economically.
AFD has been providing support to Azerbaijan since 2012, within the framework of a "green and inclusive growth" mandate. AFD's intervention includes loans to the Government as well as to enterprises and local authorities. It additionally mobilizes European grants as part of the Neighbourhood Investment Facility - East.
Currently, AFD's objective is to help Azerbaijan prepare for the post-petroleum era, and thus to diversify its economy. Modernization of its transport is just a first step.