RIYADH: The economic dynamism of Africa has a significant impact on global stability, according to Saudi Arabia’s Minister of Investment, Khalid bin Abdulaziz Al-Falih, who spoke at a forum preceding the Future Investment Initiative event.
At the FII New Africa Summit in Riyadh, global leaders convened to explore the opportunities and challenges facing the continent under the theme, ‘Infinite Horizons: Investing Today, Shaping Tomorrow.’
Al-Falih stressed the need to acknowledge Africa’s expanding global role and advocated for collaborative efforts to harness the continent’s abundant resources and economic potential. ‘When Africa sneezes, indeed, the rest of the world catches a cold,’ he remarked, emphasizing the continent’s economic health’s ripple effect on global stability.
He highlighted Africa’s demographic advantage, noting that 18 percent of the world’s population resides there. ‘Is this a problem, or a dividend that Africa and the rest of the world should harness, as the global population ages and human resources become scarce?’ he questioned, urging a shift in perspective regarding Africa’s growing youth population.
Al-Falih also pointed out Africa’s rich agricultural potential, describing it as a ‘breadbasket and food basket for the rest of the world,’ especially for regions like the Arabian Peninsula and the Gulf Cooperation Council, which find immense strategic value in its resources.
‘We need to work together to mobilize finance,’ he urged, advocating for targeted investment to drive sustainable development across the continent. Al-Falih emphasized that investment in Africa should be a partnership rather than aid-based. ‘We don’t want to help Africa, we want to work with Africa to create opportunities for investors,’ he stated.
He also underscored the need for African nations to strengthen governance, transparency, and regulatory frameworks to attract investors and drive long-term growth. ‘Africa needs to first help itself,’ he added, stressing that sound public policy and regulatory environments are crucial for sustainable development.
Amadou Hott, former Minister of Economy, Planning, and Cooperation of Senegal, also spoke on Africa’s economic potential, emphasizing the importance of internal resource mobilization for sustainable growth. ‘It is extremely important to have sound public finances and ensure we are mobilizing more resources domestically,’ Hott said, highlighting the need for fiscal prudence and proactive policy measures.
Infrastructure was a key topic, with Adebayo Ogunlesi, CEO of Global Infrastructure Partners, highlighting Africa’s energy deficit, with ‘40 percent of the African continent lacking access to electricity.’ He cited Nigeria’s limited electricity generation, which lags behind that of a mid-sized American city, as an example of the infrastructure gap that constrains economic potential.
Tidjane Thiam, President of Cote d’Ivoire’s Democratic Party, argued that a well-managed domestic economy is the foundation for attracting foreign capital. ‘Foreign investment is a reward that will come as a result of managing your domestic economy properly,’ Thiam said.
He highlighted solar power as a transformative opportunity for Africa, describing it as ‘the cheapest and cleanest form of energy’ and a powerful solution for the continent’s needs.
Samaila Zubairu, President and CEO of the Africa Finance Corp., showcased Africa’s renewable energy potential, pointing to the continent’s hydroelectric resources, with ‘350 gigawatts of hydroelectricity, with less than 10 percent of that developed.’ He detailed ongoing efforts with the government of the Democratic Republic of the Congo to rehabilitate a major hydroelectric dam, emphasizing the value of partnerships in scaling Africa’s renewable energy infrastructure.
‘Africa has abundant energy systems that can be used both for Africa and for the rest of the world,’ he added.
Zubairu mentioned partnerships with Saudi entities, including memoranda of understanding with the Saudi Fund for Development and Saudi Exim Bank, to bolster financing and support African infrastructure projects. This commitment reflects Al-Falih’s belief that ‘the world needs Africa as much as Africa needs the world,’ a sentiment that resonated throughout the panel discussion.
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