By John Ikani
Saudi Arabia’s finance minister on Monday called on nations worldwide to collaborate on resolving Africa’s staggering debt, which has now reached over a trillion dollars, while highlighting the kingdom’s ongoing $5 billion commitment to boost development funding for the continent.
As head of the International Monetary and Financial Committee (IMFC) for the International Monetary Fund, World Bank, and G20, Mohammed al-Jadaan expressed the group’s objective to find practical ways to manage African debt, particularly for low-income nations, during his remarks at the Future Investment Initiative conference in Riyadh.
Jadaan, who began his three-year IMFC term in January, oversees a committee that advises IMF governors on financial policy.
Debt Challenges
Africa’s debt burden has surged, increasing 183% since 2010, according to the United Nations Conference on Trade and Development—a rate nearly four times its economic growth. Total public debt reached $1.8 trillion in 2022, restricting African countries’ financial flexibility in times of crisis and hindering development initiatives.
Saudi Arabia’s efforts to assist Africa’s debt-stricken economies, proposed during the 2020 G20 summit in Riyadh, have benefited nations including Chad, Zambia, Ghana, and Ethiopia, Jadaan said, adding that the kingdom “remains dedicated to these initiatives.” That year, Saudi Arabia proposed suspending debt payments for African countries and reiterated the importance of debt solutions at the inaugural Saudi-Africa summit in 2023.
Saudi efforts have included working with partners to ease the debt loads of Ghana and other African nations.
Investment Momentum
At the Future Investment Initiative, Jadaan announced ongoing plans for $5 billion in new Saudi investments across Africa, following initial agreements reached during the 2023 Saudi-Africa summit. While he did not detail specific investment targets, he projected that private sector investment in Africa would reach $25 billion within the next decade.
Saudi investments across the continent rose to $13.20 billion last year, with 47 Saudi companies currently operating in Africa, government data shows. Bilateral trade between Saudi Arabia and African countries reached $45 billion in 2022, a decrease from $80 billion the previous year, though non-oil exports from Saudi Arabia to Africa increased nearly 6% between 2018 and 2022, totaling around $9 billion in 2022.
Saudi Arabia has also extended credit to African nations like South Africa and Mauritania. On October 14, the Saudi Export-Import Bank finalized a $25 million credit deal with Standard Bank Group in South Africa, aiming to enhance trade. In August, the Saudi EXIM Bank established a $10 million credit line with Mauritania’s Investment Bank to support trade expansion in the region.
