The Italian development finance institution Cassa Depositi e Prestiti (CDP) has agreed a debut €100-million loan for African infrastructure solutions provider Africa Finance Corporation (AFC), to facilitate investments in renewable power, energy efficient projects and climate-resilient infrastructure.

CDP is providing the bilateral loan to support AFC projects that it says are urgently needed to transform African infrastructure to help combat and adapt to global warming, as well as catalyse industrialisation, create jobs and reduce poverty.

“Building strong partnerships with major international institutions such as AFC is part of our strategy to scale up 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 to Africa, this operation best places CDP as a partner of choice for regional and local development finance institutions,” says CDP international cooperation and development finance head Antonella Baldino.

The loan agreement supports CDP’s mission to boost economic growth in emerging markets and expand Italy’s global investment footprint and demonstrates continued interest from European investors in high-quality infrastructure projects on the African continent.

“This milestone agreement today marks the start of a mutually beneficial relationship between AFC and CDP.

“Access to funding from highly rated institutions, like CDP, helps us to further our commitment to investing in projects that simultaneously combat climate change and develop the critical infrastructure required for Africa’s economic growth, while delivering reliably competitive investor returns,” comments AFC CEO and president Samaila Zubairu.

The focus on sustainably reducing Africa’s energy deficit led to agreement by AFC last month to jointly acquire Lekela Power, the continent’s biggest renewable independent power producer, with plans to double generation capacity within four years.