Saudi Arabia Pledges $25 Billion in Investment for Africa, to increase Diplomatic Presence

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As part of efforts towards strengthening ties with Africa, the Crown Prince of Saudi Arabia, Prince Mohammed bin Salman has announced the Kingdom’s inject over $25 billion in new Saudi Investments into the continent.

Prince Salman made this known during the just concluded Saudi Arabia-Africa Summit in Riyadh, Saudi Arabia. The leaders of Saudi Arabia and African countries further affirmed their determination to develop cooperation and partnership and to lay the foundations for continental integration that charts a sustainable future for the countries and peoples of both regions.

Addressing the opening ceremony of the first Saudi-African summit in Riyadh, Crown Prince Mohammed bin Salman announced the launch of the Custodian of the Two Holy Mosques’ development initiative in Africa, which seeks to implement development projects and programs in the continent with a value exceeding one billion dollars over a period of ten years.

The Kingdom pledged to invest more than $25 billion in new Saudi investments into various sectors, finance and secure $10 billion in exports, provide $5 billion in additional development financing to Africa until 2030, and increase the number of Saudi diplomatic missions in the continent to more than 40 embassies.

The investment is the latest in a series of Saudi commitments to Africa. In 2021, Saudi Arabia announced that it would invest $1 billion in the African Continental Free Trade Area (AfCFTA). In 2022, Saudi Arabia announced that it would invest $2 billion in the African Energy Investment Corporation (AEIC).

Saudi Arabia’s investment in Africa is part of the country’s Vision 2030, which is a plan to diversify the Saudi economy and reduce its reliance on oil. Vision 2030 also includes a focus on increasing Saudi Arabia’s trade and investment with other countries, including African countries.

What you need to Know:

Saudi Arabia’s investment in Africa is significant for a number of reasons. First, it is the largest single investment that Saudi Arabia has ever made in Africa. Second, the investment is focused on sectors that are essential for Africa’s development, such as energy, infrastructure, and healthcare. Third, the investment is being made through the Saudi Fund for Development, which is a government agency with a track record of successful investments in Africa.

Saudi Arabia’s investment is also significant in the context of the global competition for influence in Africa. China has been the largest investor in Africa in recent years, but Saudi Arabia and other Gulf countries are now increasing their investments in the continent. This competition for influence is likely to benefit African countries, as it will give them more choices when it comes to investment partners.

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