The African Development Bank Group and Italy’s Cassa Depositi e Prestiti (CDP) plan to jointly spend up to €400 million over five years to boost the continent’s private sector growth through the recently founded Growth and Resilience Platform for Africa (GRAf).
As part of their new partnership, the two financial institutions will encourage information sharing among stakeholders, support specific strategic projects that will boost the continent’s economic growth, and provide opportunities for collaborative investment.
It is anticipated that the new platform will establish a single point of access for investment possibilities and expedite the execution of new private sector projects sponsored by the private sector in Africa.
Up to €200 million from each institution will be invested in Africa’s economy through venture capital and private equity funds that focus on three key areas: sustainable infrastructure, local SME growth, and food security. By mobilising an additional €350 million from various sources, the Growth and Resilience Platform for Africa will raise the total amount of investment money to €750 million.
Future investors can share investment opportunities in funds operating in Africa and obtain fresh perspectives on the continent’s private sector through these cooperative investments. It is anticipated that the platform will also play a major role in improving the distribution of basic goods and services throughout the continent and creating jobs.
The initiative is a component of the Mattei Plan for Africa, an Italian strategic strategy revealed in 2022 to usher in a new age of mutual partnership and sustainable development. It was presented by Prime Minister Giorgia Meloni at the last G7 conference in Borgo Egnazia. The Plan will prioritise security and stability, scientific and cultural interactions, and cooperative energy projects.
“We are creating a major new channel to mobilise up to €750 million for projects and initiatives that directly benefit Africa with our renewed collaboration with the African Development Bank Group,” said Dario Scannapieco, CEO and General Manager of Cassa Depositi e Prestiti. This endeavour is in line with the commitment made by our government under the Mattei Plan. Our nation’s long-term success is inextricably tied to the expansion of Africa, especially in the private sector. We have no doubt that this new alliance will present our companies with significant business prospects in critical industries where our nation thrives, like manufacturing, infrastructure, and agriculture.
With more than US$1.36 billion committed to 74 private equity and venture capital funds, the African Development Bank Group is the largest dedicated fund-of-funds in Africa.“I’m thrilled about our collaboration with the Italian government on Prime Minister Giorgia Meloni’s Mattei Plan,” said Akinwumi Adesina, the president of the African Development Bank Group, in praise of the collaboration. In order to increase economic opportunities for women and youth, create jobs, and lessen migration drivers, the African Development Bank Group and Cassa Depositi e Prestiti have partnered to support small and medium-sized businesses in Africa. This partnership will help achieve the goals of the Mattei plan in the continent. We intend to utilise this strategic cooperation to increase investment in Funds in Africa and boost the confidence of institutional investors from both Africa and around the world to increase their investments as well.
