By Divine Ihechimerem
On the sidelines of the G7 Heads of State and Government Summit in Puglia, Italy’s Prime Minister Giorgia Meloni and African Development Bank Group President Dr. Akinwumi A. Adesina held a pivotal meeting to discuss the forthcoming launch of joint initiatives. These initiatives aim to implement Italy’s Mattei Plan for Africa and the Rome Process on Migration and Development agenda, as agreed during the Italy-Africa Summit in January 2024.
Prime Minister Meloni emphasized the strategic importance of this collaboration, stating, “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.”
Dr. Adesina commended Prime Minister Meloni’s vision, saying, “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 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.”
Key elements of this partnership include the establishment of a Multi-donor Special Fund aimed at high-impact, climate-aligned investments in Africa. This Fund will support sovereign entities in Africa, with an initial pledge of approximately $130 million from Italy in highly concessional loans and grants. The United Arab Emirates (UAE) has also committed to contribute, and the African Development Bank Group will match the Fund’s contributions for each project with its own resources.
Additionally, a bilateral agreement has been signed between Italy and the African Development Bank Group, encompassing a cofinancing arrangement and trust fund to finance joint projects. Italy has committed around $150 million in highly concessional loans and grants, with the African Development Bank Group matching this amount. The priority areas for investment include energy, water, agriculture, health, education and training, and both physical and digital infrastructure.
A notable initiative within this collaboration is the Growth and Resilience platform for Africa (GRAf), designed to promote private sector investments by mobilizing equity capital to regional funds that finance entrepreneurial activities. The Italian development financial institution, Cassa Depositi e Prestiti (CDP), aims to catalyze up to $820 million over five years, with CDP and the African Development Bank Group each considering up to $200 million during this period.
Moreover, Italy has pledged up to $45 million to the Alliance for Green Infrastructure in Africa (AGIA), an initiative spearheaded by the African Development Bank Group, the African Union, and Africa50, aimed at mobilizing $10 billion for green infrastructure investments across Africa.
The African Development Bank Group will ensure diligent management and execution of these joint initiatives through its decision-making processes, aiming for substantial development impacts and strengthened ties between Italy and African nations.