Banking and FinanceInvestor Activity

Italian Development Organization Joins Forces with Afrexim Bank to Boost Food Security in Africa

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Italian Development Organization Joins Forces with Afrexim Bank to Boost Food Security in Africa

The Italian international development financial organization, Cassa Depositi e Prestiti S.p.A (CDP) and Afreximbank formalized an agreement with a Memorandum of Understanding (MoU) that establishes a €100 million fund aimed at bolstering food security across Africa.

Vincent Musumba, the Communications and Events Manager at Afreximbank, released a statement on Monday indicating that this financial provision will also bolster Afreximbank’s efforts in promoting climate-smart agricultural practices in Africa.

Furthermore, Cassa Depositi e Prestiti S.p.A (CDP) of Italy and Afreximbank executed another MoU to foster business collaborations between Italian and African entities.

According to the announcement, this funding is in addition to an earlier pledge by CDP of €100 million, thus increasing CDP’s total contribution to €200 million.

The statement revealed that the agreement was inked by Haytham ElMaayergi, Afreximbank’s Executive Vice-President, and Dario Scannapieco, CEO of CDP.

It was further detailed in the statement that the fresh injection of funds from CDP is intended to assist African businesses directly or through local 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,”

Furthermore, the statement noted that the initiative will allow Afreximbank to offer prompt and essential assistance to its member countries by supporting enterprises involved in the food security sector.

The statement also noted that this facility would aid in handling disruptions in the supply chain, especially concerning soft commodities.

Source: Nairametrics

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