Afreximbank and CDP Partner to Enhance Food Security and Climate-Smart Agriculture in Africa

News in Brief: - Afreximbank and an Italy's CDP development bank establish a €200 million facility to support food security and climate-smart agriculture in Africa. - The initiative aims to boost local food production, collaboration between African and Italian companies, and climate resilience. The African Export-Import Bank (Afreximbank) and Cassa Depositi e Prestiti (CDP), Italy's development finance institution, have signed a €200 million financing facility and a Memorandum of Understanding (MoU) to bolster food security and climate-smart agriculture across Africa. The €200 million facility will support Afreximbank's interventions in these areas —providing financial assistance directly to eligible African businesses or indirectly through local financial institutions. Specifically, the agreement prioritises projects related to local production and import of essential commodities like cereals and fertilisers, crucial for food security. Also, the MoU aims to foster collaboration between Italian and African companies, promoting knowledge sharing and potentially leading to co-investment opportunities. Meantime, the partnership aligns with Italy's Mattei Plan, which emphasises African development and positions Africa as a central focus for CDP's strategy. It is expected that this financial backing will lead to increased food production in Afreximbank's member countries, contributing to food security and reducing reliance on imports. Also, it could contribute to the development of alternative food channels and investments in climate-smart agriculture, enhancing food resilience and long-term sustainability. Creation of business opportunities for Italian companies in Africa's food and agriculture sectors could be another benefit of the deal. This collaborative effort signifies a significant commitment to strengthening food security and agricultural development in Africa.