by: Celine Camoin | March 26, 2024
Cassa Depositi e Prestiti SpA (Cdp), the official Italian financial institution for international development cooperation, and the African Bank for Import and Export (Afreximbank) concluded in Cairo a memorandum of understanding for a loan of 200 million euros for the Bank’s interventions in the field of food security and climate-friendly agriculture across Africa.
The financing comes on top of an initial CDP commitment of €100 million, bringing CDP’s total financing to €200 million. The two financial institutions also concluded a memorandum of understanding to develop synergies between Italian and African companies.
This new CDP financing will be used to provide support, either directly to eligible African businesses or indirectly through local financial intermediaries. Some projects that will be funded will focus on local production and import of essential goods such as grains and fertilizers.
The partnership was announced on the occasion of the inauguration of the new CDP office in Cairo, the first operational headquarters of the Italian institute in Africa. Haytham ElMaayergi, Executive Vice President of Afreximbank, and Dario Scannapieco, CEO of Cdp, signed the agreement.
The MoU will promote collaboration between Italian and African businesses, while bringing Africa and Italy closer together with the aim of promoting intra- and extra-African trade. This collaboration includes the co-financing of eligible transactions with sovereigns, companies and financial institutions of Afreximbank member countries, as well as the organisation, participation and promotion of networking events with African stakeholders and local business communities in Italy or with one of the countries members of the Bank.
Dario Scannapieco, during the ceremony, stated: “Food security and the resilience of agricultural supply chains are fundamental issues for the development of the African continent, as demonstrated by the initiatives taken by the Italian government through the Mattei Plan. Through collaboration with Afreximbank, the CDP will be able to guarantee resources to local SMEs operating in these sectors, while at the same time encouraging the creation of opportunities for Italian businesses. This commitment will be further strengthened by the opening of our new office in Cairo, which confirms the centrality of Africa in the CDP strategy.”
This facility will enable Afreximbank to provide timely and necessary support to its member countries through food safety businesses and support supply chain crisis management, particularly around food and beverage products. This will in turn contribute to the stabilization of food security and the diversification of supply sources in Africa.
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