Kuwait has pledged $1-billion in loans to African countries over the next five years, in a move that Kuwaiti Amir Sabah Al-Ahmad Al-Jaber Al-Sabah says demonstrates the region’s commitment to forging genuine partnerships between Arab and African countries.
“I directed officials of the Kuwait Fund for Arab Economic Development (KFAED) to extend soft loans to African countries in the amount of $1-billion over the next five years, not to mention investments by a number of Kuwaiti corporations in various sectors,” he announced at the Third Arab-African Summit, in Kuwait City, on Tuesday.
The Amir also announced the creation of a yearly $1-million award in the name of late philanthropist Dr Abdulrahman Al-Sumait, which would focus on development research in Africa.
The announcements came amid discussions to create the world's newest free trade zone between the Middle East and Africa, which would fuel economic development by lowering barriers to international trade.
The summit was also expected to hear Kuwait's call for other Arab countries to follow its lead in investing in the African private sector, as well as for empowerment of women to drive effective development.
Since its inception in 1961, the KFAED had contributed over $6.4-billion to projects in 48 African States, while Kuwait had, on average, provided total development aid, including loans, grants and technical assistance, of 1.3% of its gross domestic product.
The summit had been attended by around 52 Arab and African presidents and heads of State, including the first participation of representatives from both Sudan and South Sudan.
It was the first to take place outside Africa, after the inaugural summit in Cairo, Egypt, in 1977, and the second in Sirte, Libya, in 2010.
Other discussions at the event would include calls from Kuwait for legislation and global treaties to drive food security and peace, improved multilateral cooperation between Arab and African countries to ensure political security and increased infrastructure development.