Italy and World Bank Forge Pact to Boost Sustainable Development in Africa

The World Bank collaboration offers Italy a high-impact delivery mechanism for these interventions, leveraging the Bank’s operational scale, technical expertise, and long-standing presence across the African continent.

In a landmark move to accelerate sustainable and inclusive growth across Africa, the World Bank and the Italian government today signed a major co-financing agreement aimed at bolstering the continent’s development agenda. The pact, signed during the World Bank-IMF Spring Meetings, represents a decisive step forward in Italy’s commitment to global development cooperation and its strategic engagement with the African continent.

A 25% Surge in IDA Funding: Backing the Poorest Nations

Central to the agreement is Italy’s decision to increase its financial support to the International Development Association (IDA)—the World Bank’s fund dedicated to helping the world’s poorest countries—by approximately 25%. This substantial boost places Italy among a select group of donor countries expanding their development financing despite a challenging global fiscal landscape.

Ajay Banga, President of the World Bank Group, celebrated the partnership, stating,

“This agreement will allow us to co-finance priority projects, scale impact, and create a more efficient structure for delivering results on the ground around our shared strategic interests: job creation, energy access, food security, regional integration.”

The Mattei Plan for Africa: Italy’s Development Blueprint

The newly signed deal is also a major endorsement of Italy’s Mattei Plan for Africa, the country’s flagship foreign policy initiative that aims to establish equal, long-term partnerships with African nations through targeted investments. Originally announced by Prime Minister Giorgia Meloni in 2023, the plan is designed to foster mutual prosperity by prioritizing real-world development interventions in:

• Energy and renewable infrastructure

• Transportation and water access

• Agriculture and food security

• Health systems

• Education and workforce training

The World Bank collaboration offers Italy a high-impact delivery mechanism for these interventions, leveraging the Bank’s operational scale, technical expertise, and long-standing presence across the African continent.

Delivering Results Fast: From Words to Action

Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, emphasized the urgency and pragmatism behind the initiative, stating,

“Africa’s challenges demand action, not words. This partnership ensures the Mattei Plan delivers real impact—fast.”

The co-financing framework will allow Italian development funds to be pooled with World Bank financing on a project-by-project basis, ensuring alignment with African governments’ own development priorities while maximizing cost-efficiency and delivery speed.

A Broader Strategic Vision: Hybrid Capital and Mission 300

Beyond IDA and the Mattei Plan, Italy is also stepping up its involvement in other global development initiatives. As part of the new agreement, Italy committed to increasing its forthcoming subscription to hybrid capital instruments issued by the International Bank for Reconstruction and Development (IBRD), the World Bank’s arm for middle-income countries. These instruments are designed to leverage private-sector-like capital to stretch the Bank’s resources further.

In addition, the agreement aligns Italy with Mission 300—a joint program led by the World Bank and the African Development Bank (AfDB)—which aims to connect 300 million Africans to electricity by 2030. The program is part of a wider effort to close Africa’s chronic energy access gap, which hampers economic growth and human development.

A Model for Future Development Partnerships

The Italy-World Bank collaboration represents a model of how bilateral donors and multilateral institutions can combine resources and expertise to accelerate progress on global goals. By anchoring the agreement in shared principles of equality, urgency, and impact, both parties are helping redefine how development finance can be deployed more effectively.

With Africa’s population projected to double by 2050 and many countries still struggling with poverty, conflict, and underinvestment, this agreement is more than a financial commitment—it is a signal of renewed geopolitical and humanitarian resolve.