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Business, Financial Instruments, Global Poverty

The Mattei Plan: Italy’s Billion-Dollar Investment Plan in Africa

The Mattei Plan: Italy's Billion-Dollar Investment Plan in AfricaItalian Prime Minister Georgia Meloni announced the Mattei Plan during the Italy-Africa summit in 2024—a billion-dollar investment initiative aimed at transforming Italy’s foreign aid policy, generating significant profits for Italy and effecting real change in Africa. The Mattei Plan aims to reduce immigration by improving living conditions in the countries from which many immigrants originate and by curbing the spread of radical Islamism in sub-Saharan Africa. The pilot project will launch in nine countries: Algeria, Côte d’Ivoire, Egypt, Ethiopia, Kenya, Morocco, Mozambique, the Republic of Congo and Tunisia, with an initial investment of €5.5 billion.

The pillars of the program

The Mattei Plan has six focus areas to guide its efforts:

  1. Education and Training. This pillar emphasizes improving educational systems by providing teacher training, refreshing curricula and launching new vocational courses that meet labor market demands. It encourages collaboration with businesses, particularly Italian ones and draws inspiration from Italy’s successful small and medium-sized enterprise model.
  2. Agriculture. The focus here is on reducing malnutrition, fostering agricultural value chains and supporting the development of sustainable biofuels. Key initiatives include promoting family farming, preserving forests and addressing climate change through comprehensive agricultural strategies.
  3. Health. This focus area aims to enhance health services by improving access to quality care for mothers and children. It seeks to build local capacities in health care management, training and research and to implement measures to prevent and manage health crises such as pandemics and natural disasters.
  4. Energy. The goal of this strategic pillar is to transform Italy into an energy gateway between Europe and Africa. Efforts will concentrate on the climate-energy connection, promoting energy efficiency and renewable energy. The plan includes accelerating the shift to renewable electricity, improving energy infrastructure and fostering local energy technology innovation through the establishment of innovation centers.
  5. Water. Initiatives under this pillar include drilling solar-powered wells, maintaining existing water sources, investing in water distribution networks and educating communities about the importance of clean drinking water.
  6. Infrastructure. This pillar supports all other areas by developing both physical and digital infrastructure, ensuring the effective implementation of the plan’s various initiatives.

Collaboration is key

This project will be implemented through a collaboration involving various stakeholders from the Italian government—including multiple Ministries and the Italian Export Credit Agency—as well as from the private and civil society sectors. A notable aspect of the Mattei Plan, which has garnered praise, is its inclusive approach; unlike previous initiatives, it will not be enacted unilaterally from the top down. Instead, African leaders will play an active role in executing the programs, with partners jointly designing key goals and targets.

Evidence of this collaborative approach was visible when 21 African Heads of State and Governments attended the summit where the plan was announced. Additionally, the presence of European Union President Ursula von der Leyen highlighted significant European interest in this innovative, collaborative investment approach in Africa. This integrated approach can deliver short-term goals but also identify areas in which other already existing programs can come in and improve. This comprehensive, cooperative format of the Mattei Plan is original and can change the structure of Italy’s international partnerships. 

Benefits for Europe

Italy stands to gain significantly from the Mattei Plan, especially through its “Energy” pillar. Italy aims to become a key energy supplier to Africa, with the state-owned oil and gas company ENI, already a major player in Africa, expecting high returns from the plan. The plan is named in honor of ENI’s founder, Enrico Mattei. Additionally, water services management company ACEA and oil company ENEL are exploring opportunities in Africa related to the environment and energy sectors.

During another meeting involving stakeholders of the Mattei Plan, African Development Bank director Dr. Akinwumi Adesina highlighted the benefits of Italy’s investment in Africa. The continent is home to six of the 10 fastest-growing economies and has the fastest-growing middle class. It also has the highest concentration of the global population under 35 years old, with 75% of the continent’s population below that age.

Looking Ahead

The Mattei Plan, with its €5.5 billion initial investment, aims to transform Italy’s foreign aid policy and foster significant economic and social development in nine African countries. By focusing on key areas such as education, agriculture, health, energy, water and infrastructure, the plan seeks to improve living conditions and reduce migration pressures. Collaborative efforts involving African leaders, European stakeholders and Italian businesses underscore a new model for international partnerships, poised to benefit both Africa and Italy.

– Clara Tripodi

Clara is based in Salvador, Brazil and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

July 15, 2024
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https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Precious Sheidu https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Precious Sheidu2024-07-15 07:30:492024-07-15 01:30:55The Mattei Plan: Italy’s Billion-Dollar Investment Plan in Africa

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