In a bid to boost agricultural productivity, the official Italian financial institution for international development cooperation and Afreximbank have signed a Memorandum of Understanding, MoU, for a 100 million euros facility to support food security in Africa.
Communications and Events Manager at Afreximbank, Vincent Musumba, on Monday said the new financing facility was also to support Afreximbank’s initiatives on climate-smart agriculture in Africa.
It said the Italian financial institution known as Cassa Depositi e Prestiti S.p.A, CDP, Italy and Afreximbank also signed an MoU to enhance cooperation between Italian and African companies.
The statement explained that the financing adds to an initial commitment from CDP of 100 million euros, lifting the total financing from CDP to 200 million euros.
It noted that the partnership was announced during the inauguration of CDP’s new office in Cairo, the first operational headquarter of the Italian institution in Africa.
The statement mentioned that Haytham ElMaayergi, Executive Vice-President, Afreximbank and Dario Scannapieco, Chief Executive Officer of CDP signed the agreement.
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“The new financing from CDP will be used to provide support, either directly to eligible African enterprises, or indirectly through local financial intermediaries.
“Some of the projects that will be financed will include those related to local production and import of essential soft commodities such as cereals and fertilizers,” the statement partly read.
The statement further quoted ElMaayergi as saying, “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 mentioned 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 the collaboration includes co-financing of eligible transactions with sovereigns, corporates and financial institutions in Afreximbank’s member countries.
“Also, the organization participation and promotion of matchmaking events with African stakeholders and local business communities in Italy, or any of Afreximbank’s member countries,” he said.
Scannapieco was quoted saying, “food security and the resilience of agricultural supply chains are key issues for the development of the African continent.
“Through collaboration with Afreximbank, CDP will be able to guarantee resources to local Small and Medium Enterprises operating in these sectors.
“It will at the same time favor the creation of opportunities for Italian companies.
“This commitment will further be reinforced through the opening of our new office in Cairo, which confirms the centrality of Africa in CDP strategy,” he said.
The statement equally noted that the new facility would enable Afreximbank to provide timely and necessary support to its member countries through businesses in the food security space.
It said the facility would also support management of supply chain crises, particularly around soft commodities.
“This will in turn contribute to the stabilization of food security and the diversification of supply sources in Africa,” the statement read.
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