The African Development Bank (AfDB) and the Islamic Development Bank (IsDB) have signed a $2 billion landmark deal to strengthen partnership at country level.
The two parties agreed to jointly pull together the sum of $2 billion over the next three years to finance projects in agriculture and food security, renewable energy, small and medium enterprises, and human development (health and education).
To realize the shared objective of the agreement, the IsDB and the Bank agreed to each contribute US $1 billion over three years for joint activities focusing on these priority areas and sectors.
Speaking at the agreement signing ceremony at the AfDB headquarters in Abidjan, President of the African Development Bank, Akinwumi Adesina reaffirmed the Bank’s commitment and interest to build a stronger partnership with the Islamic Development Bank.
The IsDB will also engage with the Bank to implement the High 5s- the five areas in which the AfDB is focusing on to help accelerate Africa’s economic transformation.
“Today’s meeting is about collaboration and partnership. AfDB and IsDB share common traits and the agreement we are signing is the highest with any development bank. We are very excited about the range of things we can do together and we are ready to work with you to move this movement,” Adesina said.
“We are going to work on a pipeline of projects in Africa stretching from agriculture to SMES, energy and human development. We need to create jobs for our women and youth.”
IsDB is among the largest contributors of co-financing to the Bank. The Bank and IsDB have co-financed projects valued at over US$ 2.5 billion for the period 2002—2016.
The AfDB has a country presence in 21 out of the 27 common member countries with IsDB. As part of the new agreement, AfDB and IsDB are to complement and make use of each other’s staff expertise at country-level.
The President of the Islamic Development Bank, Bandar Hajjar described the areas of partnership as crucial.
“We look forward to working with the AfDB in moving SMEs towards industrialization, renewable energy and agriculture and food security. These areas will create jobs and lead to economic transformation and improve the lives of the people of Africa. SMEs can transform African economies from primary to industrial hubs,” Hajjar said.
The Islamic Development Bank is a multilateral development financing institution located in Jeddah, Saudi Arabia. IsDB was founded in 1973 during the first Organisation of the Islamic Conference (now called the Organisation of Islamic Cooperation).