The African Development Bank (AfDB) and the Islamic Development Bank (IsDB) have agreed to each contribute $1 billion to finance agriculture, food security, renewable energy, small and medium enterprises, and health and education projects at country-level over the next three years.
Founded in 1973 during the first Organisation of the Islamic Conference (now called the Organisation of Islamic Cooperation), the Islamic Development Bank is one of the multilateral development banks. It is based in Jeddah, Saudi Arabia and is among the largest contributors of co-financing to the Bank.
The AfDB has a presence in 21 out of the 27 common member countries with IsDB and as such, they can complement and make use of each other’s staff expertise at country-level. The Banks co-financed projects worth more than $ 2.5 billion between 2002 and 2016.
AfDB President Akinwumi Adesina said, “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.”
The agreement was signed by Adesina and the President of the Islamic Development Bank, Bandar Hajjar at the AfDB headquarters in Abidjan.
Commenting on the deal, Hajjar said, “We look forward to working with the AfDB in moving SMEs towards industrialization, and the other areas that 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.”