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'development agency' is correct and usable in written English.
You could use it when referring to a type of organization that focuses on the improvement and growth of an area or country. For example, "The Department of Water and Climate Change is a public development agency that works to create policies that protect the environment."
Exact(19)
Agence Nationale de Développement des Biocarburants (national biofuels development agency in Mali).
The development agency declined to comment.
What it is: Regional development agency.
(Disclosure: I occasionally consult for the UN's development agency).
Teagasc is Ireland's agriculture and food development agency.
Yorkshire Forward What it is: Regional development agency.
Similar(41)
Development will be largely delivered by the three regional development agencies: the London Development Agency, the East of England Development Agency and the South East England Development Agency, as well as the national regeneration agency, English Partnerships.
Canada International Development Agency (CIDA) The Canadian International Development Agency (CIDA) is Canada's lead agency for development assistance.
The ALRB answers to the Labor and Workforce Development Agency.
Agence française de développement (French Development Agency).
Community Development Agency.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com