Saudi Africa private sector: Riyadh’s financial initiatives and trade partnerships aim for sustainable development and economic growth

Saudi Arabia’s private sector investments in Africa are set to reach $25 billion over the next ten years, according to Finance Minister Mohammed Al-Jadaan. Speaking at the Future Investment Initiative (FII) New Africa Summit in Riyadh, Al-Jadaan highlighted the Kingdom’s ambition to deepen its economic and philanthropic ties with Africa, aiming to foster growth and prosperity across the continent. The summit, a high-profile event connecting global investors with African business leaders, underscores the opportunities available on the continent and the momentum for cross-border investment.

As part of a broader commitment to Africa’s development, Saudi Arabia recently signed a memorandum of understanding in April between the Saudi Fund for Development and the African Development Bank Group. This strategic alliance seeks to provide vital funding for emerging economies within Africa, particularly in sectors poised for high-impact and sustainable growth.

Al-Jadaan emphasised that Saudi Arabia’s relationship with Africa goes beyond trade and economic interests, rooted instead in shared cultural and historical bonds. “The connection between Saudi Arabia and Africa is based not only on geography but on a mutual history and aspirations for a shared future,” he noted. He added, “Since the Saudi-Africa Summit held last year, we have mobilised $5 billion of these investments, and our private sector’s total commitment is expected to hit $25 billion in the coming decade.”

This focus on Africa reflects Saudi Arabia’s ongoing Vision 2030 initiative, which prioritises diversification and global investment as central pillars of economic transformation. To date, the Kingdom has launched a series of projects aimed at strengthening socio-economic conditions in Africa, including support through the Saudi EXIM Bank. Over the next ten years, the bank is set to deliver $10 billion in financing products, with $1.5 billion already allocated. This move underscores the Kingdom’s role in enabling African businesses to expand their financial capabilities and tap into international markets.

Saudi Arabia’s Public Investment Fund (PIF) is also a major player in this commitment, with $5 billion earmarked to support diversified projects throughout Africa. “The recent Saudi-Africa summit marked a pivotal chapter in our collaboration with the continent,” said Al-Jadaan. “The PIF has already started deploying funds, as part of a broader $5 billion investment plan focused on economic diversification over the next decade.”

The Kingdom’s philanthropic commitment to Africa was also a focal point of Al-Jadaan’s remarks. He outlined the Custodian of the Two Holy Mosques’ Philanthropic Initiative, which has allocated $1 billion to support humanitarian and socio-economic initiatives across Africa. This includes education, healthcare, and infrastructure projects, which are expected to contribute meaningfully to local communities.

As Saudi Arabia ramps up its involvement in Africa, the FII New Africa Summit serves as a crucial platform for connecting Saudi investors with African counterparts. Led by the FII Institute, the summit emphasises the potential for joint projects and innovations that address key challenges in sectors like infrastructure, technology, and sustainable energy.

Richard Attias, CEO of the FII Institute, hailed the partnership as a catalyst for future growth. “We believe that sustainable investment is a powerful tool for transformation,” he said. “By aligning our goals with those of our African partners, we’re creating an ecosystem where opportunities can flourish.”

Tony Elumelu, Chairman of the United Bank for Africa, echoed this sentiment, pointing to Saudi Arabia’s increasing role in advancing Africa’s financial landscape. “Saudi Arabia’s involvement is a vote of confidence in Africa’s potential. It’s not just about capital, but about bringing expertise and building resilience,” he remarked.

Saudi Arabia’s support for Africa represents a long-term strategy that aligns with the goals of both regions, focusing on creating a stable and thriving African economy. As the Kingdom’s investments grow, so does its influence across Africa, marking an era of strategic partnership and shared growth.