Cassa Depositi e Prestiti S.p.A Italy, the official Italian financial institution for international development cooperation, and Africa Export-Import Bank have signed a new financing facility worth €100 million to support the Bank’s interventions in food security and climate-smart agriculture in Africa.
This disclosure was made in a statement by the Communications and Events Manager at Afreximbank, Vincent Musumba on Monday noting that this financial provision will also bolster Afreximbank’s efforts in promoting climate-smart agricultural practices in Africa.
In addition, CDP of Italy and Afreximbank executed another MoU to foster business collaborations between Italian and African entities.
This commitment is in addition to the 100 million already committed by CDP, which means an overall contribution of EUR 200 million, according to the statement.
According to the press release, Afreximbank Executive Vice President, Haytham ElMaayergi and Dario Scannapieco, CDP Chief Executive Officer signed a contract.
The statement further indicated that the new infusion of funds from CDP will be used to support businesses in Africa by way of direct or regional financial intermediaries.
The statement reads, “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.
“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 favour 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,”
The statement pointed out that the initiative will enable Afreximbank to offer its Member States immediate and crucial assistance through support for businesses in the food security sector.
The statement also explained that this facility would aid in handling disruptions in the supply chain, especially concerning soft commodities.
