Saudi Arabia and African Nations: A Promising Industrial and Mining Partnership

The Kingdom of Saudi Arabia’s hosting of the Saudi-Arab-African Economic Conference this year reaffirms the Kingdom’s supportive stance towards international and regional efforts in collaboration with the African Union, aiming to contribute to economic development and increased investments on the continent.

The Kingdom aims to enhance its economic ties with African countries, particularly in the industrial and mining sectors, and increase its non-oil exports to Africa, capitalizing on its unique geographical location as a significant trading hub bridging the East and West.

Moreover, the Kingdom actively participates in various trade fairs and events on the continent to promote its non-oil products and services.

Over the past five years, trade between the Kingdom and African countries has witnessed significant growth, with Saudi non-oil exports to Africa increasing at an annual rate of 5.96% from 2018 to 2022.

The Saudi non-oil exports reached SAR31.94 billion by 2022’s end, while Saudi imports from Africa amounted to SAR23.79 billion until the end of 2022.

Several non-oil sectors lead Saudi exports to Africa, with the chemical and polymers sector at the forefront, followed by packaging, construction materials, and finally, the food products sector.

On the other hand, Saudi imports from Africa include various sectors, such as food products, construction materials, precious metals, and jewellery.

Both the Kingdom and the African continent possess significant mining potential.

Through the upcoming Future Minerals Forum (FMF), which Riyadh will host in January 2024, the Kingdom aims to maximize the utilization of the extensive mining region spanning from Africa to West and Central Asia.

The FMF seeks to attract investments for the mineral industries in this area, contributing to the economic growth of the mining sector regionally and globally.

In 2021, Saudi Arabia exported metal products valued at $3.41 billion to South Africa. During the same period, South Africa exported precious metals and metal products worth $397 million to the Kingdom of Saudi Arabia. Saudi Arabia has actively pursued expanded cooperation with 11 African countries, including Zambia, Senegal, Zimbabwe, Congo, Angola, South Africa, Guinea, Chad, Mauritania, Morocco, and Egypt, through negotiations for a memorandum of understanding (MoU) in the mining sector.

The Kingdom has engaged in significant mining projects in collaboration with African countries. Notably, Industries Chimiques du Fluor (ICF) in Tunisia, a joint project, produces aluminum fluoride, which is subsequently exported to numerous aluminum smelters globally. Furthermore, the National Industrial and Mining Company (SNIM) stands as one of the largest African firms in iron production, operating primarily in Mauritania. Additionally, collaborative efforts with the Mauritanian side, such as the Takamul project between SABIC and SNIM, focus on the exploitation of iron ore in the Atomaie Region within the Tiris Zemmour state.

The Saudi-Arab-African Economic Conference is scheduled to take place on Thursday at the Hilton Hotel in Riyadh. The event will witness the participation of various leaders, decision-makers, and officials from Saudi Arabia and African countries, alongside financial and business leaders from the public and private sectors, trade unions, international organizations, and notable figures from academia and think tanks.

The conference’s agenda will encompass a wide array of topics, including the enhancement of industrial, mining, and commercial partnerships, the role of sustainable energy collaborations in facilitating access to energy sources, the strengthening of frameworks for cooperation to achieve food security, investments in business development, infrastructure, and human capital, and the promotion of collaborative efforts to achieve sustainable development.