African Development Bank to Match Italy’s $150 Million Investment for Development Projects in Africa
Written by Jerry Alomatu on June 18, 2024
The African Development Bank (AfDB) has announced it will match the $150 million in concessional loans and grants provided by Italy to fund development projects across Africa. This initiative marks the operationalisation of Italy’s Mattei Plan for Africa, aimed at sparking economic growth and curbing irregular immigration to Europe.
The AfDB revealed this collaboration in a statement on its website, following the Italian government’s earlier unveiling of the Mattei Plan, which seeks to foster economic growth in Africa to address the root causes of migration. Data from Italy’s Interior Ministry indicates a 50 percent increase in migrant arrivals in 2023, underscoring the urgency of such initiatives.
The AfDB, which has a longstanding bilateral agreement with Italy, including a co-financing arrangement and trust fund for joint projects, stated: “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 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.”
Priority areas for investment include energy, water, agriculture, health, education and training, and both 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, targeting high-impact, climate-aligned investments in strategic sectors to support African sovereign entities. The fund, designed to attract other international partners and leverage additional funding, has already received an initial pledge of around $130 million from Italy, with an additional commitment from the United Arab Emirates.
AfDB President Dr. Akinwumi Adesina praised Italian Prime Minister Giorgia Meloni for her commitment to the Mattei Plan and for selecting the AfDB as a strategic partner. Adesina stated, “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 announcement was made following a meeting between Prime Minister Meloni and President Adesina on the sidelines of the G7 Heads of State and Government Summit in Puglia. The collaboration aims to scale up investment flows and foster economic and strategic partnerships between Italy and African nations, addressing key development challenges and creating sustainable economic opportunities in Africa.
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Author: Jerry Alomatu
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