Saudi EXIM Bank and AFC Sign MoU to Drive Trade and Investment Growth Across Saudi Arabia and Africa

The partnership was formalized on the sidelines of the 2024 IMF/World Bank Annual Meetings, marking a milestone in strengthening the trade and investment ties between Saudi Arabia and AFC's 39 member countries across Africa.

In a significant step toward fostering economic integration and trade growth between Saudi Arabia and Africa, the Saudi Export-Import Bank (Saudi EXIM) and Africa Finance Corporation (AFC) have signed a Memorandum of Understanding (MoU). The partnership was formalized on the sidelines of the 2024 IMF/World Bank Annual Meetings, marking a milestone in strengthening the trade and investment ties between Saudi Arabia and AFC's 39 member countries across Africa.

This MoU aims to enhance bilateral trade by promoting Saudi exports to African markets and by offering support to projects jointly undertaken by businesses in Saudi Arabia and AFC member states. The agreement includes initiatives such as information exchange, technical expertise sharing, and the development of financial credit solutions tailored to the needs of diverse sectors across both regions. Through this collaboration, both institutions hope to build on each other's strengths, helping Saudi investors access Africa's emerging markets and benefiting African companies by providing financing and risk mitigation solutions.

Saudi EXIM’s CEO, His Excellency Eng. Saad Al-Khalb, noted, “The MoU with the Africa Finance Corporation is part of Saudi EXIM’s commitment to deepening Saudi Arabia’s global economic and trade relationships. This agreement will cover a variety of cooperation areas, including supporting Saudi companies seeking to expand into African markets, which aligns with Saudi Vision 2030. We aim to empower the Kingdom's non-oil economy, allowing our national businesses to capitalize on promising investment opportunities in Africa.”

The collaboration is anticipated to be particularly beneficial in bridging financing gaps and supporting Saudi exports through credit facilities tailored for companies operating across sectors, such as construction, renewable energy, and infrastructure. Al-Khalb emphasized that AFC’s experience in successfully implementing large-scale infrastructure projects across Africa offers a strategic advantage, as Saudi EXIM works to promote a more diversified Saudi economy beyond its traditional oil base.

AFC President and CEO Samaila Zubairu also lauded the agreement, saying, “Strategic partnerships are vital for economic transformation. In today’s interconnected world, nations must collaborate to achieve sustainable development. This partnership with Saudi EXIM is a major step forward in our joint mission to drive industrialization, facilitate trade, and create jobs across both regions.” Zubairu emphasized that AFC’s ongoing projects, such as the Red Sea Power Wind Farm in Djibouti, the Arise IIP industrial zones, and the Lobito transport corridor, are transformative projects that highlight AFC’s commitment to sustainable development in Africa.

With AFC's established track record in sectors such as power, transport, heavy industry, and technology, the partnership aligns well with AFC’s vision of infrastructure-led growth. Saudi EXIM, a development bank affiliated with Saudi Arabia's National Development Fund, seeks to diversify Saudi Arabia's economic base by reducing the financing and export risks for non-oil products, a key objective of the Kingdom’s Vision 2030. The bank has been instrumental in enhancing the efficiency of Saudi Arabia’s export system, providing tailored credit facilities that support Saudi businesses in expanding globally.

Through this MoU, Saudi EXIM and AFC hope to unlock new channels for investment in infrastructure, natural resources, technology, and logistics, targeting projects that create sustainable growth and uplift local communities. Key projects under AFC’s mission, such as the Lobito transport corridor and the Arise IIP industrial zones, are reshaping Africa’s economic landscape, contributing to local job creation, and advancing the continent's infrastructure capabilities.

The collaboration between Saudi EXIM and AFC exemplifies the type of cross-regional partnerships that are critical for economic resilience in today’s globalized economy. By leveraging the shared expertise and resources of both institutions, this strategic alliance not only enhances bilateral trade but also sets the stage for a dynamic economic ecosystem that benefits both Africa and Saudi Arabia for decades to come.