Arab Funds: The Discreet Funds Financing Africa's Future

Introduction: a silent but strategic cooperation

In the grand narrative of international cooperation, we often hear about Western donors, China, or multilateral institutions. But much more discreetly, the Arabian Gulf countries have for several decades been weaving a network of influence and economic solidarity with Africa. This cooperation, born of the redistribution of oil surpluses in the 1970s, is embodied today by powerful institutions: the Arab development funds.

Their action receives little media coverage, but their impact is tangible. Roads, dams, hospitals, solar power plants, rural schools… Behind many structuring projects, one finds the signature of these Gulf-based funds.

I - Institutions born of oil solidarity

It all began in the wake of the first oil shock of 1973. As oil revenues soared, several Arab states decided to create instruments of financial solidarity for countries of the South, and especially for the African continent. The goal: to share the wealth derived from oil, while strengthening the political and economic ties between the Arab world and Africa.

This is how the Kuwait Fund for Arab Economic Development (KFAED), the Saudi Fund for Development (SFD), the Arab Fund for Economic and Social Development (AFESD), and the Arab Bank for Economic Development in Africa (BADEA) came into being. Over the decades, these institutions became key partners in African development.

II - The major Arab players in African development

• The Kuwait Fund (KFAED)

The first of its kind in the Arab world, KFAED operates in nearly 50 African countries. It finances roads, water and electricity infrastructure, and schools.

Examples of projects:

• Senegal: construction of the Foundiougne bridge and modernisation of the roads linking Kaolack and Fatick.
• Burkina Faso: support for the Zina solar plant (26 MW), co-financed with the AfDB.
• Côte d'Ivoire: financing of Bouaké's water supply network, benefiting 500,000 inhabitants.

• The Saudi Fund for Development (SFD)

Active in more than 40 African countries, the SFD supports vital projects: health, education, energy, infrastructure.

Examples of projects:

• Niger: the Kandadji dam, intended to strengthen food and energy security.
• Mauritania: regional hospitals and drinking water networks in Nouakchott.
• Cameroon: rural electrification in the North, connecting thousands of households.

• BADEA (Arab Bank for Economic Development in Africa)

Unique in its exclusively African mission, BADEA operates in more than 45 countries.

Examples of projects:

• Côte d'Ivoire: vocational training and support for SMEs.
• Chad: agricultural development and local processing programme.
• Rwanda: construction of rural roads and support for digitalisation.

• The Abu Dhabi Fund for Development (ADFD)

A specialist in renewable energy, the ADFD is a key player in Africa's green transition.

Examples of projects:

• Mauritania: the 15 MW Nouakchott solar plant, the largest in West Africa at its launch.
• Seychelles and Cape Verde: clean energy projects to reduce dependence on diesel.
• Morocco: co-financing of the Noor Ouarzazate Solar Complex, one of the largest in the world.

• The Arab Fund for Economic and Social Development (AFESD)

Based in Kuwait, the AFESD operates in both the Arab world and Africa.

Examples of projects:

• Mali: the Taoussa dam on the Niger River.
• Ethiopia: rural roads and programmes for access to drinking water.

• The OPEC Fund for International Development (OPEC Fund)

Present in more than 30 African countries, it combines concessional loans and private investment.

Examples of projects:

• Kenya: co-financing of the Kenya–Ethiopia electricity interconnection project.
• Ghana: support for the transport and water sectors through long-term loans.

III - Investments at the heart of African needs

The Arab Funds target structuring sectors:

• Infrastructure: roads, bridges, ports, dams.
• Renewable energy: solar, hydro, interconnections.
• Agriculture: irrigation, food security, value chains.
• Water and health: rural access, hospitals, schools.
• Entrepreneurship and youth employment: microfinance and local innovation.

Their interventions are often co-financed with the AfDB or the IsDB, pooling resources and maximising impact on the ground.

IV - A development diplomacy

This financing is part of an openly acknowledged geopolitical logic:

• Consolidating Arab–African solidarity.
• Securing food and energy supplies for the Gulf.
• Diversifying the economies of oil-producing countries (Vision 2030, Vision 2050).
• Offering an alternative South–South cooperation model alongside Chinese and Western models.

V - Challenges and prospects

Among the observed challenges or areas for improvement, the following can be mentioned:

• The lack of coordination between the different funds.
• Communication on results that is not always sufficient.
• The need to fully integrate ESG and climate criteria.
• The gradual shift from concessional aid to strategic investment.

However, the outlook is promising: towards a green and inclusive cooperation.

In particular, we observe:

• Growth in Arab green finance (clean energy, hydrogen).
• Reinforced co-financing with the AfDB (African Development Bank).
• Increased support for women's entrepreneurship and youth employment.

The Arab Funds, long seen as secondary partners, are today asserting themselves as strategic actors in Africa's future.