Italy Proposes African Debt Suspension for Climate Events

Italy, led by Prime Minister Giorgia Meloni, has proposed a mechanism allowing African countries to suspend debt repayments when affected by extreme climate events. This initiative was unveiled during the second Italy-Africa meeting in Addis Ababa, held on the sidelines of the African Union meeting. The proposal is part of Italy's broader 'Mattei Plan,' which aims to foster long-term partnerships in energy, agriculture, and infrastructure with African nations. While details on the operational aspects and eligibility criteria are yet to be provided, the plan includes a 'broad initiative on debt conversion' for joint development projects. Italy holds approximately $1.3 billion in African sovereign debt through concessional loans administered by Italy===Cassa Depositi e Prestiti. Countries like Angola, Ethiopia, Kenya, and Ivory Coast, which face overlapping climate and financial pressures, are potential beneficiaries.