RIYADH: Saudi private sector investments in Africa are projected to hit $25 billion over the next decade as economic and trade ties between the Kingdom and the continent deepen, according to a senior minister.
Speaking at the Future Investment Initiative New Africa Summit in Riyadh, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan highlighted the Kingdom’s proactive role in shaping Africa’s future through philanthropic efforts and economic diversification initiatives.
The New Africa Summit, as per the FII website, seeks to unite global investors and business leaders, highlighting the distinct opportunities in Africa and promoting cross-border investment.
Saudi Arabia has launched multiple initiatives to boost Africa’s development, with a recent memorandum of understanding signed in April between the Saudi Fund for Development and the African Development Bank Group to fund emerging economies.
“The relationship between the Kingdom and Africa transcends geographical proximity—we are partners with a shared history and future. Our shared history extends beyond economic ties, encompassing cultural, geographical, and demographic commonalities,” Al-Jadaan stated.
He added: “It is anticipated that Saudi Arabia’s private sector investments in Africa will total $25 billion over the next decade. Since the Saudi-Africa Summit, we have already committed $5 billion towards these investments.”
The finance minister also underscored major initiatives by the Kingdom to enhance socio-economic conditions in Africa, including $10 billion from the Saudi EXIM Bank to provide financing products over the next decade, with $1.5 billion already allocated.
Al-Jadaan noted that the recent Saudi-Africa summit marked a new chapter, with $1 billion dedicated from the Custodian of Two Holy Mosques’ Philanthropic initiative and $5 billion from the Public Investment Fund allocated for economic diversification projects in Africa over the next decade.
The minister emphasized the Kingdom’s assistance in digitalization and efforts to solidify Africa’s global standing, including advocating for permanent G20 membership for the African Union and establishing an Africa chair in the World Bank’s executive body.
Al-Jadaan also addressed the sustainability of African nations’ debts, calling for global cooperation to support these countries, particularly those with lower incomes.
Richard Attias, CEO of FII Institute, described the New Africa Summit as a platform dedicated to unlocking the continent’s potential, emphasizing Africa’s resilience, diversity, and untapped resources.
In a separate discussion, Tony Elumelu, chairman of the United Bank of Africa, highlighted Africa’s evolving startup ecosystem, noting the continent’s young population and improving startup success rates.
Elumelu encouraged investors to explore opportunities in Africa, stating, “The opportunities are there, the challenges are there. That’s what entrepreneurs always do; we try to navigate challenges for the betterment of all. So, Africa is open for business, we do have challenges. You can navigate those challenges.”
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