RIYADH, Kingdom of Saudi Arabia, November 9, 2023 -- Parallel financing planned in strategic sectors; Memorandum of understanding signed today at the Saudi-Arab-African Economic Conference to expand SFD’s $10.7 billion of development support in Africa.

In a milestone for strengthened bilateral ties between the Kingdom of Saudi Arabia and Africa, the Saudi Fund for Development (SFD) and Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, today announced the signing of a memorandum of understanding (MoU) to jointly finance sustainable and impactful infrastructure projects across Africa.

The MoU, signed on the afternoon of the Saudi-Arab-African Economic Conference in Riyadh, Kingdom of Saudi Arabia (KSA), signals the intent of AFC and SFD to coordinate in identifying, developing, and co-financing infrastructure and development projects across the continent.

The collaboration brings together two of the foremost entities behind innovative financing to close Africa’s critical infrastructure gap. In line with its mission to promote global sustainable development, SFD has funded more than 800 development projects worth US$20 billion in over 100 countries around world. In Africa alone, SFD has financed over 400 projects in 46 countries worth US$10.7 billion, accounting for 57% of its funding in developing countries worldwide, and supporting sectors including agriculture, energy, industry, transportation, and social infrastructure.

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.

"The SFD is committed to supporting sustainable development in Africa,” said H.E. Sultan Al-Marshad, CEO of SFD. “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. 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."

“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 & 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.”

The MoU lays a foundation to support African countries in achieving sustainable development. The MoU also reaffirms the importance of international cooperation and solidarity to achieve the Sustainable Development Goals and foster economic and social growth, particularly in Africa.