The African Development Bank (AfDB) has announced its commitment to match the $150 million in concessional loans and grants provided by the Italian government, aimed at funding projects across the African continent. This move is part of the operationalization of Italy’s Mattei Plan for Africa, which seeks to boost development in Africa and curb irregular immigration to Europe.
The AfDB, in a statement on its website, revealed that the Italian government has committed approximately $150 million in highly concessional loans and grants, which the bank will at least match. The objective of this partnership is to pursue Italian and AfDB priorities, as outlined in the Mattei Plan for Africa and the Italian Development Cooperation strategy. The goal is to foster economic and strategic partnerships with African nations and institutions, build common business opportunities, and scale up investment flows.
The priority areas for this partnership include energy, water, agriculture, health, education, and training, as well as physical and digital infrastructure. A Multi-donor Special Fund has been established to support the Mattei Plan for Africa and the Rome Process on Migration and Development. The fund will target high-impact and climate-aligned investments in key strategic sectors, supporting sovereign entities in Africa.
The AfDB has committed to matching the fund’s contributions on each project with its resources. An initial pledge of around $130 million in highly concessional loans and grants has been announced by Italy, with an additional commitment from the United Arab Emirates. The Prime Minister of Italy, Giorgia Meloni, and the President of the AfDB, Akinwumi Adesina, met on the sidelines of the G7 Heads of State and Government Summit in Puglia to discuss the project.
Adesina commended Prime Minister Meloni for launching the Mattei plan and selecting the AfDB as its strategic partner. He emphasized that the 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, he noted, will help create more economic opportunities in Africa and stem the drivers of migration.
Prime Minister Meloni expressed her appreciation for the partnership, stating that Italy’s ‘Piano Mattei’ will foster economic and strategic partnerships with African nations and institutions. She acknowledged the AfDB as Italy’s main strategic financial partner for the implementation of the plan.
Why it matters:
This partnership between the AfDB and the Italian government demonstrates a commitment to addressing the development challenges facing Africa. By providing concessional loans and grants, the partnership aims to support projects that will drive economic growth, improve living standards, and reduce poverty in Africa.
In Essence:
The African Development Bank’s decision to match Italy’s $150 million concessional loans and grants is a significant step towards promoting economic development in Africa. The partnership demonstrates the bank’s commitment to supporting African countries in achieving their development goals and promoting economic growth and prosperity on the continent.
