December 11, 2024

The African Development Bank Group and Italy’s National Promotional Institution Cassa Depositi e Prestiti (CDP) have signed a new implementing agreement for cooperation through an investment platform to advance the continent’s economic growth.

The partnership framework agreement between the two entities setting up the Growth and Resilience Platform for Africa (GRAf)—signed on 5 December in Rabat—follows the signing of a letter of intent in July 2024.

Through GRAf, CDP and the African Development Bank plan to jointly channel up to €400 million over five years through private equity and venture capital funds targeting food security, growth of local small and medium enterprises (SMEs) and sustainable infrastructure. GRAf plans to mobilise an additional €350 million from other sources to bring the pool of investment capital up to €750 million.

Through GRAf, the two institutions will target strategic projects, promote the exchange of information among stakeholders, and facilitate joint investment opportunities.

The platform is expected to accelerate the implementation of new African initiatives promoted by the private sector and create a single access point for investment opportunities.

Collaboration through the platform is also expected to contribute to job creation and improvements in the delivery of essential products and services across the continent.

The African Development Bank Group Vice president for Private Sector, Infrastructure and Industrialisation Solomon Quaynor said “by leveraging the GRAf Co-Investing Platform, we are not only mobilising resources but also creating a unified framework to address critical challenges like energy access, agricultural productivity, and employment creation.

This collaboration is a testament to our shared vision of empowering African nations to achieve sustainable growth and resilience while fostering inclusive economic opportunities.”

The initiative, presented by Italy’s Prime Minister Giorgia Meloni at the recent G7 summit, is part of the Mattei Plan for Africa, a strategic Italian initiative unveiled in 2022 to forge a new era of mutual partnership and sustainable development between Africa and Italy.

The Plan will focus on energy cooperation, security and stability, and cultural and scientific exchanges.

Paolo Lombardo, CDP’s Director for International Development Cooperation said: “This implementing agreement marks an important step in further advancing the strong partnership between CDP and the African Development Bank Group.

Building on the foundation laid earlier this year, we are now taking action to implement the Growth and Resilience Platform for Africa.

By mobilising up to €750 million, we aim to support food security, local SME development, and sustainable infrastructure—areas critical to the Mattei Plan’s vision of fostering mutual prosperity and long-term growth in Africa.”

The African Development Bank Group has the largest dedicated private equity and venture capital fund-of-Funds in Africa, with over $1.36 billion committed to 74 private equity and venture capital funds.

Courtesy: APO