Afreximbank, Italian Financial Institution Commits €100m to Boost Food Production in Africa

Gilbert Ekugbe

Afreximbank and the official financial institution for international development cooperation, Cassa Depositi e Prestiti S.p.A (CDP) Italy, have signed a Memorandum of Understanding (MoU) to commit a €100 million facility to boost food production in Africa.

According to a statement issued by the Manager, Communications and Events, Afreximbank, Mr. Vincent Musumba, the new financing facility would support Afreximbank’s initiatives on climate-smart agriculture in Africa.

The statement said that the partnership was announced during the inauguration of CDP’s new office in Cairo, the first operational headquarters of the Italian institution in Africa, adding that the financing adds to an initial commitment from CDP of 100 million euros, lifting the total financing from CDP to 200 million euros.

The statement, which was signed by the Executive Vice-President, Afreximbank, Mr. Haytham ElMaayergi, and the Chief Executive Officer of CDP, Dario Scannapieco, pointed out that the new financing from CDP would be used to provide support, either directly to eligible African enterprises, or indirectly through local financial intermediaries.

Some of the projects that would be financed included those related to local production and import of essential soft commodities such as cereals and fertilisers.”

The statement quoted ElMaayergi as sayingn that “the facility will support Afreximbank’s drive to increase food production in its member countries. It would also help Africa to achieve food security through private sector intervention. 

“Additionally, it will support the development of alternative food channels, including increasing investments in climate-smart agriculture.”

ElMaayergi said this would help increase food yield and provide resilience to businesses in the food and agriculture space.

He said that the MoU would promote collaboration between Italian and African enterprises and would bring Africa and Italy closer with the aim of promoting intra and extra-African trade.

ElMaayergi said that the collaboration included co-financing of eligible transactions with sovereigns, corporates and financial institutions in Afreximbank’s member countries.