Over €170 million in high-impact funding to promote food security and develop social infrastructure on the continent. First Financial Advisory project to stimulate Senegalese entrepreneurship and help mitigate migration flows concluded.
The operations are part of the broader international cooperation strategy of the Italian government and the European Union, thanks also to joint initiatives with leading international institutions.
Supporting the development of the African continent through projects and funding aimed at promoting food security and strengthening infrastructure, skills and local businesses in coordination with the Italian government and key European and global financial and multilateral institutions. These are the objectives at the core of the various agreements signed in the last quarter by the Cassa Depositi e Prestiti Group (CDP) with major African financial institutions, which also saw CDP’s first foray into advisory services in the international field.
CDP's actions, increasingly focused on impact finance to support partner countries, are of a systemic and strategic nature: the actions leverage partnerships with leading international players and are part of the Group's broader commitment to development cooperation. The role assigned by the Italian government to CDP as a Financial Institution for International Development Cooperation is decisive in this respect, giving it the capacity to work in all emerging economies, helping to promote a more sustainable and inclusive model of development, as also emphasised by the United Nations 2030 Agenda.
Advisory support for a Senegalese financial institution: the PASPED-PLASEPRI II programme
The PASPED - PLASEPRI II programme, the final meeting of which was held on 23 January 2022 in Dakar, is part of the cooperation framework between the Italian government, the European Union and Senegal: it was set up in partnership with the Italian Agency for Development Cooperation and financed by the European Union with the aim of offering practical solutions to the employment needs of young Senegalese people and to limit migration flows to more industrialised countries.
Designed to promote the development of local micro, small and medium-sized enterprises and support new generations of entrepreneurs who have emigrated to Europe, the project was CDP’s first foray into financial advisory services in the international arena. Through the technical assistance offered to the Senegalese Priority Investment Guarantee Fund, CDP was able to provide useful tools and expertise to strengthen its activities to strengthen the local economic and social fabric.
CDP's role will continue with the PLASEPRI II project, which aims to provide financial support to the private sector and boost the economic potential of the Senegalese community in Italy through the funds of the Development Cooperation Revolving Fund.
CDP and Afreximbank: €100 million for food security in Africa
Promoting food security, mitigating the effects of the crisis caused by the Russian-Ukrainian conflict and diversifying supply sources in Africa: these are the objectives of the €100 million of financing granted by CDP to the African Export-Import Bank ("Afreximbank"), a Cairo-based multilateral financial institution established in 1993 under the auspices of the African Development Bank to finance and facilitate trade across the African continent. Afreximbank has partnerships with leading international institutions, including the German public promotion institution KfW, the French development institution Agence Francaise de Developpement (AFD) and the European Investment Bank.
The financing granted by CDP is part of the broader context of the Ukraine Crisis Adjustment Trade Financing Programme for Africa ("UKAFPA"), recently set up by Afreximbank to support local economies impacted by the Russian-Ukrainian conflict, particularly those most dependent on the warring region in terms of imports of raw materials, fertilisers and food, thus mitigating the conflict's repercussions on the African continent.
Social infrastructure in South Africa: €50 million from CDP to DBSA
Strengthening South Africa's social infrastructure with a particular emphasis on the health, education and social housing sectors through a partnership with the Agence Francaise de Developpement. This is the scope for the co-financing initiative finalised last December by CDP, which, through a €50 million transaction, plus an equal amount provided by its French counterpart, will mobilise €100 million for the Development Bank of Southern Africa ('DBSA').
DBSA is a public financial institution whose mandate is to promote South Africa’s economic and social development and sustainable growth, with particular a focus on the region’s infrastructural development.
CDP's financing will be a practical contribution to the construction of schools, hospitals and residences in South Africa, guaranteeing care and education opportunities and supporting the construction of adequate and affordable housing for the local population.
€22 million aid credit for the inclusive and sustainable development of agro-industrial parks in Ethiopia
Contributing to the inclusive and sustainable development of Ethiopia's agro-industrial sector, creating jobs in rural areas and increasing exports of agricultural products through financial support for four agro-industrial parks in the Oromia, Amara, Tigray and SNNP regions.
These are the objectives of the CDP-supported initiative which, also thanks to greater involvement of the private sector, aims to improve agro-industrial park efficiency and food quality, safety and traceability, aiming for socially inclusive and environmentally sustainable process management.
Through a €22 million aid credit from the Revolving Fund for Development Cooperation, CDP is supporting Italy's foreign policy agenda, which places the Horn of Africa at the centre of its action strategy with the aim of fostering stability in the region, supporting job creation and mitigating migration