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The Italian development finance institution CDP has agreed to a €100 million loan to the Africa Finance Corporation (AFC). The pan-African financial institution will utilize the loan to facilitate investments in renewable power, energy efficient projects through sustainable infrastructure in the continent.
CDP’s bilateral loan will support AFC’s projects that aim to transform African infrastructure to help combat global warming and climate change, as well as catalyze industrialization, create job opportunities, and reduce poverty.
The Italian development finance institution is increasing investments in renewable energy, which is making a significant contribution to electricity access in some countries and enabling just energy transition in others. The loan agreement supports CDP’s aim to boost economic growth in emerging markets and expand Italy’s global investment footprint.
Antonella Baldino, Head of International Cooperation and Development Finance at CDP, affirmed, “Building strong partnerships with major international institutions such as Africa Finance Corporation is part of our strategy to scale up impact finance and accelerate the ecological transition in developing countries. By intensifying our commitment to Africa, this operation best places CDP as a partner of choice for regional and local Development Finance Institutions (DFCs).”
Samaila Zubairu, AFC’s President and CEO, said that access to funding from CDP will help the financial institution to continue their investments in projects that combat climate change and develop the critical infrastructure required for economic growth in Africa, along with offering reliable and competitive returns to investors.
According to AFC, the CDP funding joins other DFCs that are supporting Africa’s clean energy transition in a context of diplomatic and economic influence wars. In July, the finance institution partnered with Egypt’s Infinity Energy to acquire Lekela Power, an IPP with a portfolio of 1 GW of wind assets in South Africa, Egypt, and Senegal, along with development opportunities in Ghana.