A Strategic Partnership to Empower African Growth
The African Development Bank Group (AfDB) and Italy’s Cassa Depositi e Prestiti (CDP) solidified a partnership to foster sustainable development in Africa. Through the establishment of the Growth and Resilience Platform for Africa (GRAf), the agreement aims to channel investments into critical areas such as food security, small and medium-sized enterprise (SME) development, and sustainable infrastructure. With an initial allocation of €400 million and an additional €350 million expected from other sources, the partnership has set an ambitious target of mobilizing up to €750 million over five years.

This collaboration, formalized during a signing ceremony in Rabat, Morocco, marks a significant milestone in aligning Italian and African economic objectives under the umbrella of Italy’s Mattei Plan for Africa. The initiative emphasizes mutual growth, focusing on energy, stability, and socio-economic cooperation between Africa and Italy.

Addressing Africa’s Key Development Challenges

Through GRAf, AfDB and CDP seek to address pressing challenges such as energy access, agricultural productivity, and employment creation. These efforts will not only enhance the continent’s resilience but also strengthen the private sector’s role in driving sustainable growth. Solomon Quaynor, AfDB’s Vice President for Private Sector, Infrastructure, and Industrialization, highlighted that the platform will serve as a unified framework to pool resources, streamline project implementation, and foster inclusive economic opportunities.

Food security remains a critical issue in Africa, with over 250 million people facing hunger due to climate shocks, political instability, and resource mismanagement. GRAf’s targeted investments in agricultural productivity will aim to bolster resilience against food shortages and improve the continent’s self-reliance. Similarly, investing in SMEs—often referred to as the backbone of African economies—will play a vital role in driving job creation and fostering innovation.

AfDB’s Legacy in Private Equity

The African Development Bank has been a pioneer in promoting private equity and venture capital across Africa. With over $1.36 billion committed to 74 funds, AfDB holds the continent’s largest dedicated fund-of-funds. This legacy positions the institution as a key partner in identifying high-impact investment opportunities under GRAf.

By leveraging its extensive network and expertise, AfDB aims to attract global investors while ensuring that the benefits of economic development are broadly shared. Paolo Lombardo, CDP’s Director for International Development Cooperation, stated that the implementing agreement underscores CDP’s commitment to fostering mutual prosperity and long-term growth.

The Mattei Plan: Italy’s Strategic Vision for Africa

Introduced by Prime Minister Giorgia Meloni at the 2022 G7 Summit, the Mattei Plan for Africa outlines Italy’s approach to forging sustainable partnerships with African nations. Named after Enrico Mattei, a visionary advocate for equitable resource sharing, the plan focuses on energy cooperation, stability, and cultural exchanges.

Under this framework, Italy seeks to strengthen its role as a development partner by addressing Africa’s growing demand for clean energy, enhancing security, and promoting cultural diplomacy. GRAf’s emphasis on sustainable infrastructure aligns with the Mattei Plan’s vision of empowering African nations to transition toward greener economies.

Advancing Sustainable Infrastructure

Africa’s infrastructure deficit has long been a barrier to economic progress, with the African Union estimating a funding gap of $68-$108 billion annually. GRAf’s focus on sustainable infrastructure development will help bridge this gap by financing projects that are both economically viable and environmentally friendly.

Sustainable energy, in particular, is a key priority. Africa has immense renewable energy potential, with abundant solar, wind, and hydropower resources. By investing in clean energy projects, GRAf aims to reduce the continent’s reliance on fossil fuels while ensuring access to affordable electricity for millions.

Additionally, the platform will support urbanization initiatives, enabling cities to expand in a sustainable manner. Infrastructure investments will include transport networks, water management systems, and digital connectivity, creating a foundation for future growth.

Italy’s Role as a Development Partner

Cassa Depositi e Prestiti serves as Italy’s National Promotional Institution, tasked with fostering international development in line with the country’s foreign policy goals. By collaborating with AfDB, CDP aims to strengthen its impact in Africa while advancing Italy’s interests in global development.

CDP’s expertise in financing large-scale projects and its focus on innovation make it an ideal partner for AfDB. Through joint efforts, the two institutions plan to create a single access point for investors, making it easier to identify and support transformative initiatives across the continent.

Driving Job Creation and Inclusive Growth

One of GRAf’s most significant contributions will be its role in job creation. Africa’s youth population is projected to double by 2050, presenting both a challenge and an opportunity. Investments in SMEs and sustainable industries will generate employment opportunities, helping to address high unemployment rates and reducing economic disparities.

Moreover, by supporting local entrepreneurs, GRAf will promote innovation and economic diversification. SMEs, particularly those led by women and youth, will have access to much-needed capital, enabling them to scale their operations and contribute to broader economic growth.

Future Prospects and Impact

The partnership between AfDB and CDP is a testament to the potential of international cooperation in addressing global challenges. By pooling resources and expertise, the two institutions aim to create a ripple effect of positive change, benefiting not only Africa but also the global economy.

With €750 million in targeted investments, GRAf is poised to make a lasting impact on Africa’s development landscape. The platform’s success will depend on effective implementation, transparent governance, and sustained collaboration between stakeholders.

As Africa continues to rise as a hub of opportunity, initiatives like GRAf underscore the importance of building resilient partnerships. By aligning with the Mattei Plan’s principles of equity and mutual benefit, AfDB and CDP are setting a new standard for international development cooperation.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

11th December, 2024