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April 14, 2024

Afreximbank, Italian Financial Institution  Partner to  Enhance  Food Production in Africa

A €100 million facility has been pledged by Afreximbank and Cassa Depositi e Prestiti S.p.A (CDP) Italy, the official financial institution for international development cooperation, in a Memorandum of Understanding (MoU) aimed at enhancing food production in Africa.

Vincent Musumba, the Communications and Events Manager at Afreximbank, stated that this new financing arrangement would bolster Afreximbank’s efforts in promoting climate-smart agriculture across Africa.

The announcement of this partnership occurred during the opening of CDP’s inaugural operational office in Africa, situated in Cairo. This move signifies CDP’s commitment to Africa and builds upon their initial pledge of 100 million euros, now totaling their financial support to 200 million euros.

This collaboration, as outlined in the joint statement signed by Haytham ElMaayergi, Executive Vice-President of Afreximbank, and Dario Scannapieco, CEO of CDP, emphasizes that the additional financing from CDP will be utilized to offer direct assistance 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 fertilizers.”

The statement quoted ElMaayergi as saying 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 emphasized that this initiative would contribute to boosting food production and enhancing the resilience of businesses in the food and agriculture sectors.

He highlighted that the MoU would foster partnerships between Italian and African businesses, fostering closer ties between Africa and Italy while aiming to stimulate both intra-African and extra-African trade.

Furthermore, ElMaayergi noted that this collaboration encompasses co-financing opportunities for eligible transactions involving sovereign entities, corporations, and financial institutions within Afreximbank’s member countries.

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