TheCable

The Africa Finance Corporation (AFC) has signed a memorandum of understanding (MoU) with Saudi Fund for Development (SFD) to jointly finance sustainable and impactful infrastructure projects across Africa.

AFC, in a statement on Thursday, said the agreement was made at the Saudi-Africa economic conference in Riyadh, Saudi Arabia.

According to the firm, the collaboration aims 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,” AFC said.

“In line with its mission to promote global sustainable development, SFD has funded more than 800 development projects worth $20 billion in over 100 countries around the world.

“In Africa alone, SFD has financed over 400 projects in 46 countries worth US$10.7 billion, accounting for 57 percent of its funding in developing countries worldwide, and supporting sectors including agriculture, energy, industry, transportation, and social infrastructure.”

Commenting on the development, Samaila Zubairu, AFC president and chief executive officer (CEO), said the agreement is essential for development finance institutions to work diligently together and deliver novel solutions that address the volatile landscape and challenging economic conditions.

“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,” Zubairu said.

On his part, Sultan Al-Marshad, CEO of SFD, said the signing of the MoU with the AFC “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,” Al-Marshad said.

AFC said that the MoU lays a foundation to support African countries in achieving sustainable development and fostering economic and social growth.