The funding will help the Bank’s efforts in food security and climate-smart agriculture; The two organizations also signed an MoU to enhance collaboration between Italian and African companies.
Cassa Depositi e Prestiti S.p.A (CDP) Italy, the official Italian financial institution for international development cooperation and Africa Export-Import Bank (Afreximbank) have agreed on a new financing facility of €100 million to support the Bank’s interventions in food security and climate-smart agriculture in Africa.
This funding comes in addition to an initial commitment from CDP of €100 million, bringing the total financing from CDP to €200 million. The two financial institutions have also signed a Memorandum of Understanding (MoU) to promote synergies between Italian and African businesses.
This partnership was announced during the launch of CDP’s new office in Cairo, the first operating headquarters of the Italian institution in Africa. Haytham ElMaayergi, Executive Vice President of Afreximbank, and Dario Scannapieco, Chief Executive Officer of CDP, signed the agreement.
The new financing from CDP will be utilized to provide support directly to eligible African enterprises or indirectly through local financial intermediaries. Projects that will be funded include those related to local production and import of essential soft commodities like cereals and fertilizers.
In his remarks, Mr. ElMaayergi stated that the facility would assist Afreximbank in increasing food production in its member countries and contribute to achieving food security in Africa through private sector involvement. It will also aid in the growth of alternative food supply chains, including investments in climate-smart agriculture, to improve food production and provide resilience to businesses in the food and agriculture sector.
He added that “the MOU will encourage collaboration between Italian and African businesses and will strengthen the bonds between Africa and Italy to promote trade within Africa and beyond. The collaboration will involve co-financing eligible transactions with governments, corporations, and financial institutions in Afreximbank’s member countries, as well as organizing matchmaking events with African stakeholders and local business communities in Italy or any of Afreximbank’s member countries.”
On his part, Mr. Scannapieco mentioned: “Food security and the resilience of agricultural supply chains are crucial for the development of the African continent, as highlighted by the initiatives of the Italian government with the Mattei Plan. Through collaboration with Afreximbank, CDP will be able to provide resources to local SMEs operating in these sectors while creating opportunities for Italian companies. This commitment will be further strengthened by the opening of our new office in Cairo, emphasizing Africa’s importance in CDP’s strategy.”
This new facility will enable Afreximbank to offer timely support to its member countries through businesses in the food security sector and enhance the management of supply chain crises, especially related to soft commodities. This will ultimately contribute to stabilizing food security and diversifying supply sources in Africa.
Distributed by APO Group on behalf of Afreximbank.
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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at over US$33.4 billion, and its shareholder funds amounted to US$5.8 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.