AfDB to match Italy’s $150m concessional loans for Africa

The African Development Bank has announced that it will match the $150m in concessional loans and grants from Italy, intended to fund projects on the continent

This was revealed in a statement by the AfDB on its website, as the operationalisation of Italy’s Mattei Plan for Africa gets underway.

Earlier in the year, the Italian government unveiled a project aimed at boosting development in Africa, to spark economic growth that would curb irregular immigration to Europe.

The plan was unveiled as migrant arrival in Italy jumped 50 per cent in 2023, according to data from Italy’s Interior Ministry.

AfDB, which has had a bilateral agreement with Italy, including a cofinancing arrangement and trust fund to finance joint projects, stated, “Italy has committed approximately $150m 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 priority areas are energy, water, agriculture, health, education and training and infrastructure, both physical and digital.”

Also, a Multi-donor Special Fund has been established to serve the Mattei Plan for Africa and the Rome Process on Migration and Development.

AfDB said the fund would be targeting high-impact and climate-aligned investments in key strategic sectors in support of sovereign entities in Africa.

“Thanks to its multi-donor nature, it will be able to attract other international partners to combine forces and leverage funding. An initial pledge of around $130m in highly concessional loans and grants has been announced by Italy, together with an additional commitment by the United Arab Emirates. The African Development Bank Group has committed to at least match the Fund’s contributions on each project with its resources,” AfDB declared.

The Prime Minister of Italy, Ms Giorgia Meloni, and the President of the African Development Bank Group, Dr Akinwumi Adesina, met on the sidelines of the G7 Heads of State and Government Summit in Puglia on Saturday.

On the project, Adesina noted, “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.

“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”, Prime Minister Meloni said.