The funds are intended to strengthen road infrastructure and expand transport connectivity across Africa.
The African Development Bank Group (AfDB) and the Government of Italy have signed a new co-financing agreement worth up to €140 million, aimed at accelerating investment in key development sectors across Africa, including energy, agriculture, water, infrastructure, and human capital development.
The agreement was signed in Washington D.C. on April 20 by AfDB President Dr Sidi Ould Tah and Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, marking a major step forward in strengthening bilateral cooperation and advancing shared development priorities.
The facility forms part of Italy’s Mattei Plan for Africa and aligns with the African Development Bank Group’s Ten-Year Strategy 2024–2033, which focuses on scaling up investment, deepening partnerships, and supporting investment-led growth across the continent.
Under the arrangement, €100 million will be provided in concessional financing, while €40 million will come in grant resources. The funds will be drawn from Italy’s existing development cooperation instruments, including the Italian Revolving Fund for Development Cooperation and resources from the Ministry of Foreign Affairs and International Cooperation. The African Development Bank will manage and deploy the resources in line with its established policies and fiduciary standards.
AfDB President Dr Sidi Ould Tah welcomed the agreement, describing it as a strong signal of trust and a practical step toward deeper cooperation between the two institutions.
He said the partnership not only increases available financing for African countries but also strengthens joint efforts to address pressing development challenges.
The facility is expected to enhance the Bank’s co-financing capacity and expand its resource envelope, enabling larger-scale investments aligned with its strategic priorities, particularly in mobilizing capital, scaling partnerships, and promoting investment-driven growth.
It will also support efforts to address major development constraints, including job creation, food security, climate resilience, and improved access to energy.
In Rwanda and other regional member countries of the African Development Bank, the agreement is expected to complement ongoing development priorities such as renewable energy expansion, agricultural transformation, transport infrastructure, water and sanitation systems, and skills development. Rwanda already benefits from AfDB-backed investments that support its long-term development agenda, and the new facility is expected to further strengthen access to blended and concessional financing for priority projects.
The agreement builds on ongoing collaboration between Italy and the AfDB, including initiatives under the Rome Process/Mattei Plan Financing Facility and the Growth and Resilience Platform for Africa (GRAf), both of which aim to strengthen blended finance and private sector engagement across the continent.
Minister Giorgetti said the deal reflects Italy’s commitment to long-term, equitable partnerships with African countries and reinforces the practical implementation of the Mattei Plan.
He noted that working through the African Development Bank allows Italy to leverage an experienced institution to maximize the impact of its development resources and support sustainable investment in priority sectors.
Both sides emphasized that the partnership reflects a broader shift toward collaborative development models that combine public and private financing, strengthen institutions, and support long-term economic transformation.
The African Development Bank Group is Africa’s leading development finance institution, comprising the African Development Bank, the African Development Fund, and the Nigeria Trust Fund. It operates in 41 African countries with external offices including Japan, and supports development and social progress across its 54 regional member states.
