AfDB, Italian export credit agency sign $6b investment deal
In continuation of existing partnerships between the African Development Bank (AfDB) and the Italian government under the “Mattei Plan”, a $6b investment deal has been signed to sustain the development of initiatives with Africa’s public and private sectors.
Specifically, this investment package which gives additional opportunities for Italian businesses in education, agribusiness, healthcare, energy, water and digital economy infrastructure, will provide credit protection to foster investment in Africa.
Speaking at the official signing of the agreement between the Italian Export Credit Agency, SACE and AfDB Group at the ongoing Africa Investment Forum in Rabat, Morocco, SACE’s Chief International Business Officer, Michal Ron, said: “Africa represents a market of great potential for our companies, and our collaboration under the “Mattei Plan” will strengthen their positioning in key sectors for the continent’s development.
“In particular, we are already identifying new business opportunities where SACE can make a difference thanks to the Push Strategy, a financial instrument that, through guarantees, connects African buyers with Italian SMEs, involving them in strategic projects related to infrastructure, agribusiness, healthcare, energy, and education: priority sectors where Made in Italy, with SACE’s support, can offer a significant contribution.”
Giving more insights, Ron said that the first €3 billion of the plan were under their management and derived from the Italian Climate Fund.
“It is a €4.2B fund created a couple of years ago to help our partners transition their economy into a greener one.”
The Nation reports that the $6b “Mattei Plan” is a special purpose vehicle designed to support businesses and the national economic system under the Italian Ministry of Economy and Finance.
The agreement with the AfDB will foster investment in the continent with priority given to Algeria, the Republic of Congo, Egypt, Ethiopia, Ivory Coast, Kenya, Morocco, Mozambique, and Tunisia.
It aims at bolstering economic links and creating an energy hub for Europe in Africa while curbing emigration of Africans to the European continent, was unveiled earlier this year by the Italian Prime Minister, Georgia Meloni.
AfDB’s Vice President for Finance and Chief Financial Officer, Hassatou N’Sele, who signed on behalf of the bank, said contrary to the perceived high risk in investing in Africa, the continent offers a wealth of opportunities with lower risks
She said: “While there is often a perceived risk in investing in the continent, the reality is that Africa offers a wealth of opportunities with actual risk lower than the perception, particularly in key sectors such as education, agribusiness, healthcare, energy, and infrastructure.
“The African Development Bank Group is committed to deepening our partnerships with institutions like SACE to expand financing and de-risking solutions for critical projects across Africa. Through collaborations like the ‘Mattei Plan’, in partnership with SACE, we aim to unlock these opportunities and ensure that Africa’s vast potential is fully realized.”
The Italian Government and the African Development Bank Group have planned a series of joint initiatives to support the implementation of the Mattei Plan.
This initiative establishes synergies between SACE’s products, such as the Push Strategy as an untied export credit product, traditional export credit insurance, and the financial products offered by the African Development Bank Group.
It will support the financing of high impact projects in Africa, while jointly generating opportunities for business matching between African and Italian companies.
