Somali Magazine – Saudi Fund for Development (SDF) on Thursday signed a memorandum of understanding (MOU) with Africa Finance Corporation (AFC), targeting the release of $10.7 billion to drive sustainable development and the expansion of infrastructure projects on the African continent. The collaboration brings together two of the foremost entities behind innovative financing to close Africa’s critical infrastructure gap.
“With our shared passion to elevate Africa’s instrumental role as an engine of global growth, we are delighted to be partnering with SFD, whose considerable resources have played a positive role in accelerating economic development in Africa,” said AFC President and CEO, Samaila Zubairu.
“It is essential for development finance institutions to work diligently together to deliver novel solutions that address the volatile landscape and challenging economic conditions we are facing today,” she added.
The MOU was signed at the Saudi-Arab-African Economic Conference in Riyadh, with the leaders promising to work together to discover, create, and co-finance infrastructure and development projects throughout the continent.
“The SFD is committed to supporting sustainable development in Africa and the signing of this MoU with the Africa Finance Corporation is a significant step forward in collaborating to finance sustainable and impactful infrastructure projects across Africa,” said Sultan Al-Marshad, CEO of SFD.
“Together, we will work to unify our efforts in delivering development projects that will have a positive impact on boosting economic growth and helping to improve the quality of life for millions of people across the continent.”
The Saudi Fund for Development (SFD) has so far provided funding for over 800 development projects in more than 100 countries, totaling US$20 billion. Over 400 projects totaling US$10.7 billion have been funded by SFD in 46 countries in Africa alone. These projects serve a variety of industries and sectors, including transportation, energy, agriculture, industry, and social infrastructure. SFD accounts for 57 per cent of its financing in developing nations globally.
AFC’s solutions-first approach has produced an investment track record of US$12.7 billion in projects across 36 African countries that combine impact-at-scale with superior risk-adjusted returns.
AFC’s community of sovereign member nations has now expanded to span three-quarters of African countries. Backed by the continent’s third highest credit rating of A3 (Moody’s), the AFC, with its partners, is the biggest investor and developer in many of the continent’s iconic projects in the ports, logistics, industries, special economic zones, and renewable energy sectors.