Italy and AfDB Seal €140M Co-Financing Pact to Accelerate Africa’s Development Under Mattei Plan

In a major step toward deepening Europe–Africa economic cooperation, the Government of Italy and the African Development Bank (AfDB) Group have signed a €140 million bilateral co-financing agreement, aimed at accelerating investment across critical sectors including energy, agriculture, water, infrastructure, and human capital development.

The agreement, signed in Washington D.C., brings together Italy's Ministry of Economy and Finance, the Ministry of Foreign Affairs and International Cooperation, and the African Development Bank in a strategic partnership aligned with both Italy's Mattei Plan for Africa and the AfDB's Ten-Year Strategy (2024–2033).

A Strategic Investment Framework for Africa's Growth

The deal was formalised by AfDB President Dr Sidi Ould Tah and Italy's Economy and Finance Minister Giancarlo Giorgetti, marking a significant milestone in mobilising blended finance to address Africa's most pressing development challenges.

Under the agreement:

• €100 million will be provided as concessional financing

• €40 million will be allocated as grant resources

• Funds will be drawn from Italy's Revolving Fund for Development Cooperation and the Ministry of Foreign Affairs

• The African Development Bank will administer and deploy the funds in line with its fiduciary and operational standards

These resources will be combined with the Bank's own financing, amplifying their impact through co-financing mechanisms—a model increasingly recognised as essential for bridging Africa's estimated $100 billion annual infrastructure financing gap.

Boosting Investment in Priority Sectors

The partnership is designed to unlock large-scale investments in sectors critical to Africa's sustainable development:

• Energy access and transition, including renewable projects

• Agricultural productivity and food security

• Water and sanitation infrastructure

• Transport and economic infrastructure

• Human capital development, including education and skills

The initiative directly targets structural challenges such as youth unemployment, climate vulnerability, and limited access to essential services, which continue to constrain growth across many African economies.

Strengthening Co-Financing and Capital Mobilisation

Dr Tah highlighted that the agreement goes beyond financial contributions, reinforcing a broader strategy of partnership-driven development.

"This agreement underscores the strength of our cooperation with Italy and enhances our ability to scale up investments across member countries," he said. "It aligns with the Bank's Four Cardinal Points, particularly in mobilising capital, expanding partnerships, and driving investment-led growth."

The initiative also supports the New African Financial Architecture for Development (NAFAD)—a framework aimed at transforming how development finance is structured, by leveraging public funds to attract private investment and reduce dependency on traditional aid.

Anchored in Italy's Mattei Plan for Africa

The agreement forms a key pillar of Italy's Mattei Plan, a flagship policy initiative focused on building equitable, long-term partnerships with African nations.

Minister Giorgetti emphasized that the collaboration reflects a shift toward more sustainable and mutually beneficial development models.

"This agreement represents a concrete step in implementing the Mattei Plan," he said. "By partnering with the African Development Bank, we are ensuring that our resources are used effectively to support high-impact investments and long-term growth."

The Mattei Plan prioritizes cooperation in energy, migration management, and economic development, with a strong emphasis on addressing the root causes of irregular migration through job creation and economic opportunity.

Expanding a Broader Partnership Ecosystem

The new co-financing facility complements existing joint initiatives between Italy and the AfDB, including:

• The Rome Process/Mattei Plan Financing Facility (RPFF)

• The Growth and Resilience Platform for Africa (GRAf)

Together, these mechanisms form a comprehensive financing ecosystem designed to mobilize both public and private capital, strengthen institutional capacity, and support resilient economic systems across the continent.

Driving Sustainable and Inclusive Development

By combining concessional loans, grants, and co-investment strategies, the agreement aims to deliver measurable outcomes in:

• Job creation and youth employment

• Climate resilience and green transition

• Improved infrastructure connectivity

• Enhanced access to energy and basic services

Development experts note that blended finance models like this can multiply investment impact by up to four times, making them a critical tool in achieving the United Nations Sustainable Development Goals (SDGs).

A Model for Future Partnerships

The Italy–AfDB agreement reflects a broader global shift toward partnership-based development, where governments, multilateral institutions, and private investors collaborate to tackle complex challenges.

By aligning national strategies with multilateral frameworks, the partnership sets a precedent for how international cooperation can deliver scalable, sustainable solutions.

As Africa continues to position itself as a key driver of global growth—with a population projected to reach 2.5 billion by 2050—initiatives like this will play a pivotal role in shaping the continent's economic trajectory.