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

• Published On: 18 June 2024 at 08:33

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

This was revealed in a statement posted on the AfDB's website as Italy's Mattei Plan for Africa begins to be implemented.

Earlier this year, the Italian government announced a scheme to enhance African development and spur economic growth, hence reducing irregular immigration to Europe.

According to figures from Italy's Interior Ministry, migrant arrivals in the country are expected to increase by 50% by 2023.



AfDB, which has a bilateral agreement with Italy, including a cofinancing mechanism and a trust fund to finance collaborative projects, claimed, "Italy has committed around $150 million in highly concessional loans and grants, which the African Development Bank Group will at least equal. The goal is to pursue Italian and African Development Bank Group priorities as outlined in the Mattei Plan for Africa and the Italian Development Cooperation strategy, fostering economic and strategic partnerships with African nations and institutions through the creation of shared business opportunities and the expansion of investment flows.

"The priority areas are energy, water, agriculture, health, education and training and infrastructure, both physical and digital."

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


According to the African Development Bank, the fund would focus on high-impact, climate-aligned investments in critical strategic industries to help African sovereign entities.

"Because of its multi-donor structure, it will be able to recruit additional foreign partners to join forces and leverage funds. Italy has made an initial offer of approximately $130 million in highly concessional loans and grants, along with an additional commitment from the United Arab Emirates. The African Development Bank Group has pledged to at least match the Fund's contributions to each project with its own resources," AfDB stated.

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

On the project, Adesina stated, "I applaud Prime Minister Meloni for launching the Mattei plan and selecting the African Development Bank Group as its strategic partner to deliver it for Africa." Our collaboration will have a significant development impact throughout African countries, increasing access to energy, combating climate change, supporting food security, improving health services, and expanding skills and jobs for youth. This would assist to develop greater economic opportunities in Africa while also reducing the drivers of migration.

"Italy's 'Piano Mattei' initiative will promote economic and strategic ties with African governments and institutions, with the African Development Bank Group serving as our primary strategic financial partner for implementation. Our engagement will support the development of initiatives with Africa's public and private sectors, creating new prospects for Italian firms," Prime Minister Meloni stated.