Saudi Fund for Development Provides Over $580 Million in Development Loans to African States

The signing ceremonies took place at the Saudi-Arab-African Economic Conference held in Riyadh. SPA
The signing ceremonies took place at the Saudi-Arab-African Economic Conference held in Riyadh. SPA
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Saudi Fund for Development Provides Over $580 Million in Development Loans to African States

The signing ceremonies took place at the Saudi-Arab-African Economic Conference held in Riyadh. SPA
The signing ceremonies took place at the Saudi-Arab-African Economic Conference held in Riyadh. SPA

The Saudi Fund for Development (SFD) Chief Executive Officer Sultan Al-Marshad signed on Thursday 14 new development loan agreements with 12 African ministers, worth over $580 million to fund projects in healthcare, water, education, and transportation sectors.

The 12 countries are Angola, Burkina Faso, Benin, Burundi, Cabo Verde, Guinea, Malawi, Mozambique, Niger, Rwanda, Sierra Leone, and Tanzania. The signing ceremony took place at the Saudi-Arab-African Economic Conference held in Riyadh.

In conjunction with the loan agreements signing, the SFD CEO signed a Memorandum of Understanding (MoU) with the African Finance Corporation's CEO, Samaila Zubairu. This MoU will enable SFD to collaborate with AFC to identify, develop, and co-finance infrastructure and industrial projects across the continent.

The 14 development loan agreements signed Thursday include the Construction and Equipping of a Mother and Child Referral Hospital in Guinea for $75 million, a Riyadh Referral hospital in Sierra Leone for $50 million, Boarding Secondary Schools for Girls in Several Regions of Niger for $28 million, and the Construction of Higher College For Teacher Preparation And The Scientific Secondary School Project in Benin for $40 million.

In addition, the agreements include the Rehabilitation of the King Khalid University Hospital in Bujumbura, Burundi for $50 million, the Manga Regional Hospital (Phase 2) in Burkina Faso for $17 million, and Watersheds in the Islands of Santiago, Saint Antao, and Boavista, Cabo Verde for $17 million.

The SFD will fund the Catumbela Industrial Development Project (Phase 1) in Angola for $100 million, the Expansion of the Transmission and Distribution Water System in the East of Kigali, Rwanda for $20 million, and the Construction and Rehabilitation of the Mangochi-Makanjira Road in Malawi for $20 million.

Other agreements include the Construction and Equipping of Five Hospitals in different regions of Mozambique for $50 million, the Construction of the Muera Dam in Mozambique for $50 million, the Rehabilitation and Upgrade of Two parts of National Road No. 1 in Mozambique for $50 million and lastly the Benaco to Kyaka Transmission Line Project in Tanzania for $13 million.

These agreements and the MoU will have a positive impact on the lives of millions of people in different regions across Africa by improving access to healthcare, education, water, transportation, and economic opportunities, stimulating economic growth, and creating jobs.



Gold Poised for Biggest Weekly Fall in over Five Months on Dollar Strength

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Poised for Biggest Weekly Fall in over Five Months on Dollar Strength

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices dropped on Friday, poised for their steepest weekly decline in over five months, pressured by a stronger dollar and as markets absorbed the implications of Donald Trump's victory and its potential impact on US interest rate expectations.

Spot gold fell 0.6% to $2,690.62 per ounce as of 9:50 a.m. ET (1450 GMT), and was down 1.6% for the week.

US gold futures shed 0.3% to $2,697.90.

The dollar index gained 0.3%, on track for a weekly gain, Reuters reported

"In the last month, the story has been the uncertainty risk of the election and if there was going to be normalisation of transition, but this election appeared to be very decisive on the White House," said Alex Ebkarian, chief operating officer at Allegiance Gold.

"A lot of risk-on assets started benefiting in terms of the potential future implication of policies, so we had money go out of metals into these alternatives."

The Federal Reserve on Thursday cut interest rates by 25 basis points, but indicated a cautious approach to further cuts.

Trump's victory has fuelled questions about whether the Fed may proceed to cut rates at a slower and smaller pace, given the former president's tariff policy.

However, Fed Chair Jerome Powell said the election results would have no "near-term" impact on monetary policy.

The prospect of rate cuts, starting with the half basis point reduction in September, has underpinned gold's record rally this year.

Although bullion is reputed as a hedge against inflation, higher interest rates reduce non-yielding gold's appeal.

"Should markets restore the odds for a pre-Christmas Fed rate cut...that should help keep spot gold above the psychological $2700 level," Exinity Group Chief Market Analyst Han Tan said.

On the physical front, gold demand in India faltered, while Japan and Singapore saw some buying.

Spot silver fell 1.3% to $31.58 per ounce, platinum fell 1.8% to $979.15, palladium shed 2.3% to $1,001.25. All three metals were heading for weekly declines.