CDP agrees debut EUR100mn loan for Africa Finance Corporation to support transition in Africa

31 Aug 2022

Lagos, 31 August 2022 – Investing in renewable energy, implementing energy efficiency projects and building sustainable infrastructure in Africa. These are the purposes of the 100 million euro loan granted by Cassa Depositi e Prestiti (CDP) to Africa Finance Corporation (AFC), one of the major multilateral development banks operating on the continent, whose share capital includes over 30 states, as well as leading African financial institutions. 

The resources granted to AFC aim to modernise and make more efficient the infrastructure in the continent in order to facilitate its industrial competitiveness, create new jobs and combat climate change. Although Africa only contributes about 4% to total greenhouse gas emissions, it is actually the continent most exposed to the negative effects of global warming1.

As a Development Finance Institution and in line with the 2022-2024 Strategic Plan, CDP supports the economic growth of emerging markets with the aim of further expanding the impact of Italy's international investments and contributing to European initiatives to implement projects in Africa.

Since its founding in 2007, AFC, based in Lagos, Nigeria, has invested over 10 billion dollars in promoting infrastructure development activities in 35 African states in order to improve productivity and economic growth in these countries. Over time, in addition to CDP, other international institutions have joined AFC, such as the German public promotion institute KfW and the French and Dutch development finance institutions, Proparco and FMO.

Antonella Baldino, Head of International Development Finance Officer at CDP, said: "Building strong partnerships with major international institutions such as Africa Finance Corporation is part of our strategy to increase impact finance and accelerate the ecological transition in developing countries. It is in this spirit that we welcomed AFC's recent entry into the International Development Finance Club. By intensifying our commitment in Africa, this operation best places CDP as a privileged partner for regional and local Development Finance Institutions. "

Samaila Zubairu, President and CEO of AFC, said: "This important agreement today marks the beginning of a mutually beneficial relationship between AFC and CDP, the Italian DFI. Access to funding from leading institutions such as CDP helps us strengthen our commitment to investing in projects that simultaneously combat climate change and develop the critical infrastructure necessary for Africa's economic growth, while delivering reliable and competitive returns for investors."
 

1Trends and drivers of African fossil fuel CO2 emissions 1990–2017, Lacour M Ayompe, Steven J Davis and Benis N Egoh

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