The African Development Bank and the Italian government have signed a strategic co-financing agreement worth €140 million aimed at boosting investment in Africa, particularly in energy, agriculture, water and human capital. Through this partnership, both parties aim to strengthen the mobilisation of capital for sustainable and inclusive growth, whilst supporting the continent’s development priorities, particularly employment, food security and climate resilience. The initiative also places particular emphasis on financing African SMEs, which are essential to the economy but still face a significant resource gap.
The African Development Bank and the Italian government signed a co-financing framework agreement on 17 April 2026 in Washington, D.C, aimed at strengthening investment in Africa across the energy, agriculture, water and human capital sectors. The partnership will mobilise up to €140 million, including €100 million in concessional financing and €40 million in grants. The agreement has been concluded for a period of 10 years, with a six-year active investment phase dedicated to financing eligible projects.
“The success of Africa’s new financial architecture rests on a simple idea: capital must be mobilised at the right level, by the right institutions and with the appropriate instruments. This requires a clear distribution of roles among national, regional and continental actors.”
Sidi Ould Tah, President of the AfDB – Mauritania
Beyond financing, the cooperation seeks to strengthen the Bank’s co-financing capacity and stimulate investments aligned with its strategic priorities, notably creating decent jobs, particularly for young people and women, improving food security through resilient agricultural systems, strengthening climate resilience through adaptation projects, and expanding access to reliable energy through industrialisation and improved living conditions for local populations.
“This agreement represents a concrete step in the implementation of the Mattei Plan and reaffirms Italy’s commitment to building fair and long-term partnerships with African countries. By working with the African Development Bank, we are leveraging a trusted partner to maximise the impact of our development resources and support sustainable investment in key sectors.”
Giancarlo Giorgetti, Italian Minister of Economy and Finance – Italy
In 2024, the institution reached a milestone with a record investment of 11 billion dollars targeting key sectors. This strategy supports the acceleration of development and economic transformation, against the backdrop of an optimistic African outlook, with growth projected to reach 4.3% by 2026.
Ladies and gentlemen, you have gone beyond mere adoption by deciding today that the new African financial architecture should become the New African Financial Architecture for Development.
Sidi Ould Tah, President of the AfDB – Mauritania
The AfDB and Italy also intend to strengthen their cooperation through joint initiatives, thereby consolidating a public-private partnership in support of sustainable and inclusive growth in Africa. This partnership with Italy also aims to mobilise greater capital flows towards African SMEs, which account for 90% of businesses on the continent but face a financing gap estimated at 330 billion dollars.
