AfDB, Italy Sign Co-Financing Deal to Boost Key Sectors in Africa
The African Development Bank (AfDB) and the Government of Italy sign a co-financing agreement to strengthen the partnership for support to key sectors in Africa
The Government of Italy, through the Ministry of Economy and Finance, the Ministry of Foreign Affairs and International Cooperation, and AfDB, signed the agreement in Washington.
The deal aims at strengthening their strategic partnership to support priority projects across key sectors in Africa, including energy, agriculture, water, infrastructure, and human capital development.
The agreement was signed by the President of the African Development Bank Group, Dr Sidi Ould Tah, and Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, in Washington D.C., marking a significant milestone in the implementation of Italy’s Mattei Plan for Africa and the Bank Group’s Ten-Year Strategy 2024-2033, which commits the institution to scaling up investment and implementation across its regional member countries.
Under the agreement, up to EUR 140 million, comprising EUR 100 million in concessional financing and EUR 40 million in grant resources, will be respectively charged to the existing resources of the Italian Revolving Fund for Development International Cooperation and of the Italian Ministry of Foreign Affairs and Development Cooperation, to be deployed alongside the Bank’s own financing. The African Development Bank will administer these resources in line with its policies, procedures, and fiduciary standards.
“I welcome the signing of this strategic partnership agreement with Italy which underscores the excellent quality of our bilateral cooperation. Outside the additional resources it provides for the benefit of our regional member countries, the agreement marks the culmination of joint initiatives between the Bank Group and Italy, to address development challenges in Africa.
“It is fully in line with the co-financing approach, promoted by the African Development Bank Group’s Four Cardinal Points and aligns with the New African Financial Architecture for Development (NAFAD),” said Dr Sidi Ould Tah.
The bilateral facility will strengthen the Bank Group’s resource envelope and co-financing capacity, enabling the scaling-up of investments aligned with the Bank’s strategic priorities and its Four Cardinal Points, particularly in mobilizing capital, scaling partnerships, and advancing investment-led growth. It will also support efforts to address key development challenges, including job creation, food security, climate resilience, and access to energy.
The agreement complements ongoing joint initiatives between Italy and the African Development Bank under the Mattei Plan, including the Rome Process/Mattei Plan Financing Facility (RPFF) and the Growth and Resilience Platform for Africa (GRAf), further reinforcing a comprehensive partnership framework across public and private sector financing.
“This agreement represents a concrete step in the implementation of the Mattei Plan and reaffirms Italy’s commitment to building equitable and long-term partnerships with African countries.
“By working with the African Development Bank, we are leveraging a trusted partner to maximise the development impact of our resources and support sustainable investment across key sectors,” said Minister Giorgetti.
The agreement underscores the shared commitment of Italy and the African Development Bank to advancing a partnership-based approach to development, combining public and private investment, strengthening institutional capacity, and addressing the root causes of fragility and migration through sustainable economic growth. Africa Finance Corp. Closes $100m Facility from India Exim Bank
