In response to the ongoing challenge of food insecurity in Africa, the African Export-Import Bank (Afreximbank) and Cassa Depositi e Prestiti S.p.A (CDP), an Italian development finance institution, has inked a €200 million Memorandum of Understanding (MoU) to address food insecurity and promote climate-smart agriculture across the continent.
The MoU, signed by Haytham ElMaayergi, executive vice president of Afreximbank, and Dario Scannapieco, chief executive officer of CDP, was unveiled during the inauguration of CDP’s inaugural office in Cairo, marking the Italian institution’s first operational headquarters in Africa.
Under the terms of the MoU, CDP will augment its commitment by providing an additional €100 million, raising the total financing to €200 million. This funding supplements a previous €100 million commitment from CDP aimed at supporting food security and climate-smart agriculture in Africa. Additionally, the two entities entered into a separate MoU to facilitate business partnerships between Italian and African firms.
The newly allocated funds from CDP will be channeled towards providing financial assistance to eligible African enterprises through loans or guarantees. These funds will be disbursed directly to enterprises or indirectly through local financial intermediaries. Projects financed through this initiative will include local production and importation of essential soft commodities like cereals and fertilizers.
ElMaayergi emphasized the significance of this partnership, stating that the financing facility will play a crucial role in boosting food production in Afreximbank member countries and achieving food security through private sector involvement. He highlighted that the facility will also promote the development of alternative food channels, such as investments in climate-smart agriculture, to enhance food yields and build resilience in the food and agriculture sector.
Furthermore, ElMaayergi underscored that the collaboration between Afreximbank and CDP will foster cooperation between Italian and African enterprises, ultimately promoting intra-African and extra-African trade to the benefit of both regions.
Scannapieco echoed the importance of addressing food security and strengthening agricultural supply chains for Africa’s development, citing initiatives like the Mattei Plan by the Italian government. He expressed CDP’s commitment to supporting Africa’s economic development through collaboration with Afreximbank, emphasizing the potential to provide resources to local small and medium-sized enterprises (SMEs) in the agricultural and food sectors, creating opportunities for Italian companies.
Moreover, Scannapieco highlighted the role of the new facility in enabling Afreximbank to provide timely support to member countries, particularly in managing supply chain crises related to soft commodities, thereby contributing to food security stabilization and diversification of supply sources in Africa.
