AfDB To Match Italy's $150m Funding For African Development

AfDB To Match Italy’s $150m Funding For African Development

1 month ago
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The African Development Bank (AfDB) has announced plans to match the $150 million in concessional loans and grants committed by Italy. This funding, aims to support development projects across Africa under Italy’s Mattei Plan for Africa.

In a statement on its website, the AfDB revealed, “Italy has committed approximately $150 million in highly concessional loans and grants, and the African Development Bank Group will at least match this amount. The objective is to pursue Italian and African Development Bank Group priorities as set out by the Mattei Plan for Africa and by the Italian Development Cooperation strategy, to foster economic and strategic partnerships with African nations and institutions by building common business opportunities and scaling up investment flows.”

The Mattei Plan for Africa was introduced by the Italian government earlier this year. The initiative aims to stimulate economic growth in Africa to reduce irregular immigration to Europe. Data from Italy’s Interior Ministry shows a 50 per cent increase in migrant arrivals in 2023, highlighting the urgency of addressing economic conditions in Africa to manage migration pressures.

Prime Minister Giorgia Meloni of Italy and AfDB President, Dr. Akinwumi Adesina, discussed the partnership at the recent G7 Heads of State and Government Summit in Puglia.

READ ALSO: AfDB Announces $1.44 Billion Investment To Support Nigeria’s Infrastructure Development

Meloni expressed confidence in the collaboration, saying, “Italy’s ‘Piano Mattei’ will foster economic and strategic partnerships with African nations and institutions, and the African Development Bank Group is our main strategic financial partner for its implementation. Our collaboration will sustain the development of initiatives with Africa’s public and private sectors, with additional opportunities for Italian businesses.”

The AfDB highlighted that the priority areas for funding include energy, water, agriculture, health, education and training, and both physical and digital infrastructure. This broad focus aims to address multiple facets of development and create a comprehensive support system for African nations.

Adesina commented on the initiative, “I applaud Prime Minister Meloni for her launch of the Mattei plan and for selecting the African Development Bank Group as its strategic partner to deliver it for Africa. Our partnership will deliver impactful development impacts across African countries, expand access to energy, tackle climate change, support food security, boost health services, and expand skills and jobs for the youth. This will help create more economic opportunities in Africa and help stem drivers of migration.”

The Multi-donor Special Fund, established to support the Mattei Plan for Africa and the Rome Process on Migration and Development, will target high-impact and climate-aligned investments in key sectors. This fund is designed to attract additional international partners to maximize the impact of the investments.

An initial pledge of around $130 million in concessional loans and grants has been announced by Italy, with additional commitments from the United Arab Emirates. The AfDB has committed to match the Fund’s contributions for each project with its resources.

The cooperation between Italy and the AfDB is built on a longstanding bilateral agreement, which includes co-financing arrangements and a trust fund to finance joint projects. This latest initiative strengthens their partnership, emphasizing the shared goal of fostering sustainable development and economic growth in Africa.

As these projects get underway, the collaborative efforts of the AfDB and Italy are expected to bring significant benefits to various sectors across the African continent, creating a ripple effect that can help stabilize and grow local economies, reduce migration pressures, and improve the quality of life for millions.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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