The loan from the Saudi Fund aims to enhance access to healthcare, education, water, transportation, and economic opportunities. Targeted projects address a wide range of United Nations Sustainable Development Goals (SDGs) in 12 African countries.
Saudi Arabia increasingly involved in investments in Africa
In an ever-evolving financial landscape, Saudi Arabia, endowed with abundant oil resources, is advancing a narrative of economic collaboration and strategic partnerships in Africa. As the Saudi Fund for Development (SFD) implements its initiatives, it has recently concluded a historic loan agreement worth 580 million USD with 12 African countries. This partnership marks a significant advancement in the kingdom’s growing role on the global financial stage.
Saudi Arabia’s ascent becomes a compelling tale of financial diplomacy in a context where traditional financiers, notably China, are reassessing their commitments. The monarchy is positioning itself not only as a regional powerhouse but also as a global influencer shaping the trajectory of international finance.
The Saudi Fund has financed over 400 projects worth 10.7 billion USD across 46 countries in Africa.
12 African countries to benefit from the Saudi Fund
HE Sultan Al-Marshad, Director General of SFD, has signed 14 new development loan agreements with 12 African ministers. The funding, valued at over 580 million USD, will support healthcare, water, education, and transportation projects in Angola, Burkina Faso, Benin, Burundi, Cape Verde, Guinea, Malawi, Mozambique, Niger, Rwanda, Sierra Leone, and Tanzania.
The signing ceremony occurred during the Saudi-Arab African Economic Conference in Riyadh, Saudi Arabia, on November 22, 2023. Alongside signing the loan agreement, the CEO of the Saudi Fund also signed a Memorandum of Understanding (MoU) with the CEO of the Africa Finance Corporation, Mr. Samaila Zubairu.
Infrastructure development highlighted
This Memorandum of Understanding enables the Saudi Fund to collaborate with the AFC to identify, develop, and co-finance infrastructure and industrial projects across in Africa.
The development loan agreements include constructing and equipping a mother-child referral hospital in Guinea for 75 million USD. A similar hospital will be established in Sierra Leone for 50 million USD. Additionally, secondary boarding schools for girls will be built across Niger for 28 million USD. The loan will also fund the construction of the Higher Teacher Training College and the Scientific High School project in Benin for 40 million USD.
50 million USD allocated to King Khalid University Hospital in Burundi
Other projects include the rehabilitation of King Khalid University Hospital in Burundi for 50 million USD, the regional hospital in Manga (phase 2) in Burkina Faso for 17 million USD, and the watershed areas of Santiago and Saint Antao in Cape Verde for 17 million USD.
Furthermore, the Saudi Fund will finance the Catumbela Industrial Development Project (phase 1) in Angola for 100 million USD. An allocation of 20 million USD will be dedicated to extending the water transport and distribution system in eastern Kigali, Rwanda. Also, the construction and rehabilitation of the Mangochi-Makanjira road in Malawi will receive 20 million USD in funding.
Other agreements include constructing and equipping five hospitals in different regions of Mozambique for 50 million USD. An additional 50 million USD will be allocated to building the Muera Dam in Mozambique. Financing will also be directed towards rehabilitating and modernization of two sections of National Highway No. 1 in Mozambique for 50 million USD. Finally, the Benaco-Kyaka transport line project in Tanzania will receive an allocation of 13 million USD.
Targeted projects address UN SDGs
These agreements and memorandums of understanding will positively impact the lives of millions of people in different regions of Africa. The Saudi Fund will improve access to healthcare, education, water, transportation, and economic opportunities, stimulating economic growth and job creation.
These projects address various United Nations Sustainable Development Goals (SDGs) priorities, including poverty reduction, health improvement, and education. Other SDGs expected to benefit include gender equality, water and sanitation access, decent work, economic growth, industry, innovation, infrastructure, inequality reduction, sustainable cities and communities, and climate change.
Sustainable development
On this occasion, HE Sultan Al-Marshad, CEO of the SFD, stated, « The SFD is proud to continue its partnership with African countries by supporting development projects that will have a tangible impact on the lives of millions of people. We are advancing towards a brighter and more equitable Africa through these new agreements and memorandums of understanding. Investing in healthcare, education, water, and transportation projects empowers millions to realize their full potential and build a more sustainable and economically prosperous continent for future generations. »
In line with its mission to promote global sustainable development since 1975, the SFD has financed over 800 development projects worth 20 billion USD in over 100 countries worldwide. The 10.7 billion USD funding from the Saudi Fund in Africa represents 57 % of SFD’s total funding in developing countries worldwide.
