AfDB and SACE Sign US$6 Billion Pact to Boost African Investments.

RABAT: The African Development Bank (AfDB) and Servizi Assicurativi del Commercio Estero (SACE), an Italian Export Credit Agency, have entered into a US$6 billion agreement designed to provide credit protection and stimulate investment across Africa. The agreement was formalized during the 2024 African Investment Forum Market Days in Rabat, Morocco, under the 'Mattei Plan.'According to Ghana News Agency, the agreement aims to support the financing of high-impact projects in Africa and foster business collaborations between African and Italian companies. The focus will be on sectors such as education and training, agriculture/agro-industry, healthcare, energy, water, and infrastructure, including digital economy infrastructure.The initial beneficiaries of this initiative include countries like Algeria, the Republic of Congo, Egypt, Ethiopia, Ivory Coast, Kenya, Morocco, Mozambique, and Tunisia. The Mattei Plan seeks to create opportunities for both African markets and Italian businesses, enhancing Italy's presence in key sectors crucial to Africa's growth.Mr Michal Ron, Chief International Business Officer of SACE, emphasized Africa's potential as a market for Italian companies. He highlighted the Push Strategy, a financial instrument designed to connect African buyers with Italian small and medium-sized enterprises (SMEs) through guarantees, as a primary means to identify new business opportunities.Ms Hassatou N'Sele, Vice President for Finance and Chief Financial Officer at AfDB, addressed the perceived risks associated with investing in Africa. She stated that the actual risk is often lower than perceived and that the continent offers numerous opportunities. Ms N'Sele reiterated AfDB's commitment to expanding financing and de-risking solutions in collaboration with institutions like SACE to unlock Africa's potential.The partnership under the Mattei Plan is seen as a critical step towards realizing Africa's vast opportunities, with both AfDB and SACE aiming to turn potential into reality through strate gic collaborations.