On the sidelines of the 8th annual Future Investment Initiative (FII), Saudi Arabia on Monday hosted the New Africa Summit in Riyadh.
Global leaders and decision-makers gathered to explore the vast economic opportunities and discuss challenges facing the continent, under the main event’s theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” according to Asharq Al-Awsat.
Wealthy Continent
The African continent boasts a large share of the world’s natural resources, possessing vast reserves of minerals, gas, oil, fertile land, as well as renewable and non-renewable energy sources. Africa has around 30% of the world’s mineral reserves.
Countries such as South Africa, Nigeria, Algeria, Angola and Libya encompass over two-thirds of Africa’s mineral resources, largely due to oil, while South Africa is prominent for the abundance of gold and other precious resources.
Unlocking Africa’s Potential
In recognition of Africa’s great economic potential, Saudi Arabia seeks to strengthen cooperation across various fields, by promoting mutual interests, development, and stability. To this end, the Kingdom hosted a Saudi-African summit in November 2023 to foster bilateral relations and capitalize on the vast economic opportunities in Africa.
During the New Africa Summit, the Saudi Finance Minister, Mohammed Al-Jadaan, highlighted several key initiatives that the Kingdom is undertaking in the continent. These include allocating over $1bn to African development initiatives through the Custodian of the Two Holy Mosques Development Initiative.
Furthermore, the Saudi Fund for Development (SFD) has dedicated $5bn to invest in development projects in Africa over the next decade. ACWA Power also made a $7bn investment in renewable energy projects across multiple African countries. Recently, it announced that its Redstone Concentrated Solar Power (CSP) project in South Africa is close to reaching its maximum capacity of 100 megawatt in the coming days.
Private Sector Investments
During the New Africa Summit, Al-Jadaan projected that the Saudi private sector’s investments in Africa will amount to $25bn over the next ten years. He added that $5bn of these investments are already underway.
He also said that the Saudi Export-Import (EXIM) Bank has earmarked $10bn for providing financing products over the next decade. Al-Jadaan emphasized Africa’s vital role in addressing global challenges and highlighted the accelerated Saudi partnership with the continent.
Similarly, the Saudi Investment Minister, Khalid Al-Falih, said during a panel discussion that Saudi Arabia would cooperate with African countries to create beneficial investment opportunities. He added that the Kingdom has increased its total investments and development aid in the continent to around $45bn, reaching the majority of African nations.
Driving Economic Growth
Al-Falih emphasized the significance of cooperation in driving economic growth and encouraging Saudi companies’ investments, pointing to Africa’s untapped mineral wealth. “The global economy is entering a new era where minerals will drive the next stage of economic growth,” he said.
“We need to combine development aid with investment. We don’t want only to assist Africa; we want to work alongside it to create opportunities for investors,” Al-Falih added.
Furthermore, the Saudi Investment Minister said that the Kingdom would support Africa’s transformation by providing new technologies. He also highlighted the continent’s huge agricultural potential that could make it a major source of food and agricultural exports worldwide, according to Saudi Gazette.
“Africa can be the breadbasket and food source for the rest of the world, including for us in the Gulf Cooperation Council countries, given the continent’s vast capabilities in this field,” Al-Falih said.
