Gov’t secures access to Saudi loans during Middle East trip
Published:Wednesday | November 22, 2023 | 12:15 AMKimone Francis/Senior Staff Reporter
The Jamaican Government has turned to oil-rich Saudi Arabia as a new international lending partner, with the signing of a memorandum of understanding (MOU) that is to give the country access to loans.
Senator Kamina Johnson Smith, minister of foreign affairs and foreign trade, made the disclosure during the Jamaica Labour Party’s (JLP) launch of its 80th annual conference at the party’s Belmont Road headquarters in New Kingston yesterday.
Prime Minister Andrew Holness, Johnson Smith and other CARICOM heads of government and foreign ministers last week travelled to Saudi Arabia’s capital city Riyadh at the invitation of Crown Prince Mohammed bin Salman Al Saud for the inaugural CARICOM-Saudi Arabia Summit.
“In respect of Jamaica, we signed an MoU with the Saudi Arabia Fund for Development (SFD) which creates a framework for us to engage on concessional loan funding for national projects,” said Johnson Smith.
“We have not signed on [to] any projects at this point in time. Those will go through our normal processes and then funding can be sought from the SFD,” she added.
The SFD, according to the Saudi government’s website, was established by a royal decree as a government organisation that provides “soft loans and grants” to finance development projects and programmes in developing countries.
It states that the support is provided by the kingdom to enhance economic and social growth and to improve the living standards of disadvantaged communities and support countries most in need.
“SFD works to finance projects to achieve sustainable development goals and enhance the effectiveness of development aid through partnerships and cooperation with regional and international organisations,” the website states.
Saudi Arabia has funded 413 projects and programmes at a cost of US$10.7 billion in 46 countries in Africa at the end of December 2022.
In Asia, the Middle Eastern country paid for 265 projects and programmes at a cost of US$7.4 billion across 30 countries.
The SDF also funds 22 projects and programmes in eight other countries with a price tag of US$490 million. Cuba is the only identifiable Caribbean country in that group.
“There is a deepening interest of Saudi Arabia in the region and it is hoped that Jamaica will be able to capitalise on some of this stimulated interest by getting broader investments,” said Johnson Smith.
She said Holness raised the point during the summit that increased investment and increased trade are the more sustainable ways in which governments can ensure sustainable growth in their countries versus “seeking to stay on a debt cycle”.
She said that this was a message that was welcomed by the Saudi government.
Johnson Smith said Jamaica’s aim is also to engage “more broadly” with Saudi Arabia in terms of support for climate funding, tourism, technology, and infrastructure.