Saudi Fund for Development’s $580m Boost to African Infrastructure

Saudi Fund for Development’s $580m Boost to African Infrastructure

Saudi Fund for Development’s $580m Boost to African Infrastructure

In a landmark move, the Saudi Fund for Development (SFD) has taken a significant step towards bolstering African infrastructure and economic growth. The Chief Executive Officer of SFD, H.E. Sultan Al-Marshad, inked 14 new development loan agreements totalling $580 million with 12 African ministers at the Saudi-Arab-African Economic Conference in Riyadh.

These agreements underscore a deepening economic collaboration between Saudi Arabia and the African continent. They are poised to have a transformative impact on various sectors, notably health, education, and infrastructure, across a dozen African nations including Angola, Burkina Faso, Benin, Burundi, Cabo Verde, Guinea, Malawi, Mozambique, Niger, Rwanda, Sierra Leone, and Tanzania.

Key among these projects is the construction and equipping of a Mother and Child Referral Hospital in Guinea, valued at $75 million, and a Riyadh Referral Hospital in Sierra Leone, at $50 million. In Niger, a $28 million investment aims to establish Boarding Secondary Schools for Girls in several regions, reflecting SFD’s commitment to educational development. Moreover, the Higher College For Teacher Preparation And The Scientific Secondary School Project in Benin, with a $40 million allocation, further emphasizes this focus.

The SFD’s investment reaches into the healthcare sector as well, with a notable $50 million allocated for the rehabilitation of the King Khalid University Hospital in Bujumbura, Burundi. The agreement also includes significant investments in Burkina Faso and Cabo Verde, earmarked for healthcare and environmental projects.

CEO of SFD, Mr. Sultan Al-Marshad and African Finance Corporation's CEO, Mr. Samaila Zubairu signed MoU to drive sustainable development (Photo: AETOSWire)
CEO of SFD, Mr. Sultan Al-Marshad and African Finance Corporation’s CEO, Mr. Samaila Zubairu signed MoU to drive sustainable development (Photo: AETOSWire).

Industrial development forms a crucial part of these agreements, notably with the Catumbela Industrial Development Project (Phase 1) in Angola receiving a $100 million commitment. The expansion of the water distribution system in East Kigali, Rwanda, and the Mangochi-Makanjira Road construction in Malawi, each receiving $20 million, illustrate the SFD’s focus on essential infrastructure development.

The SFD’s engagement with Mozambique is particularly extensive, encompassing the construction of five hospitals, the Muera Dam project, and substantial road rehabilitation works, each valued at $50 million. Additionally, the Benaco to Kyaka Transmission Line Project in Tanzania, at $13 million, signifies a commitment to improving regional energy infrastructure.

H.E. Sultan Al-Marshad, on this occasion, said: “The SFD is proud to continue partnering with African countries through contributing towards supporting development projects that will have a tangible impact on the lives of millions of people. With these new agreements and MoU, we are taking a step further towards a brighter and more equitable Africa.”

The SFD also signed a Memorandum of Understanding with the African Finance Corporation, aiming to co-develop and co-finance infrastructure and industrial projects across Africa. This partnership is set to catalyse further investment and development in the region.

To date, the SFD has funded over 400 sustainable development projects, valued at US$10.7 billion, in 46 countries, with 57% of its funding allocated to developing countries. This latest series of agreements not only highlights Saudi Arabia’s growing role in international development finance but also underscores its commitment to supporting sustainable growth and development in Africa.

Saudi Fund for Development's $580m Boost to African Infrastructure

Global Project Finance with Highways Today $100 Million to S10 Billion

Post source : Saudi Fund for Development

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