Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, and the Islamic Corporation for the Development of the Private Sector (ICD), a multilateral development financial institution (part of the Islamic Development Bank (IsDB) Group), today announced their intention to collaborate on financing eligible transactions in the common member countries of AFC and ICD. This announcement was made during the signing of a Memorandum of Understanding (MOU) between both institutions at the IsDB’s annual meeting today in Sharm El-Sheikh, Egypt.
AFC and ICD will explore opportunities to co-finance critical infrastructure projects to promote private sector development in 19 common member countries, including Nigeria, Benin, Burkina Faso, Cote d’Ivoire, Chad, Djibouti, Egypt, Gabon, Gambia, Guinea, Guinea-Bissau, Mali, Mauritania, Morocco, Niger, Uganda, Senegal, Sierra Leone, Togo, and Tunisia. In addition, the partnership aims to collaborate on deepening capital markets in the target countries through Islamic finance and treasury solutions to unlock domestic financing for infrastructure and private sector development.
As a preamble to the MOU, AFC and ICD have jointly agreed to support the construction of the largest gas-to-power plant in Senegal, collaborating further by extending bilateral credit lines or medium-term liquidity solutions for financing private sector development in the target countries.
Speaking about the collaboration, Sanjeev Gupta, Executive Director and Head of Financial Services, Africa Finance Corporation said, “We are pleased to announce this collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), a highly reputable multilateral financial institution.
The objective of this partnership is aligned with AFC’s approach of cultivating strategic relationships with strong partners to deliver the instrumental infrastructure required to transform Africa and propel the continent into its next phase of growth.”
In a similar vein, Ayman Sejiny, CEO of the Islamic Corporation for the Development of the Private Sector (ICD) said, “We are pleased to sign this MoU with AFC and to announce that ICD and AFC are already in discussions for co-financing projects in Africa.
This MoU demonstrates ICD’s commitment to be part of building and developing the infrastructure of its member countries in Africa and supporting the development of the private sector by exploring co-financing opportunities, as well as collaborating to promote and develop capital markets through Sukuks in Africa. ICD reaffirms the strong interest in developing a long-term relationship and partnership to support the development of the private sector in the African members countries.”
The collaboration will build on both institutions’ shared vision of promoting sustainable and inclusive growth, by co-financing infrastructure projects across the energy, transport, and logistics sectors, all of which are critical to private sector development.
It will also leverage AFC’s recently launched U$2B African Resilience Facility, to provide timely and competitive resources to African financial institutions in support of the economic recovery and resilience of small and medium enterprises (SMEs) in the region. As leading multilateral financial institutions in their respective regions, AFC and ICD’s alliance is expected to contribute to the deepening of Africa and Middle Eastern cooperation through cross-border investments and regional trade.
Source: The Africa Finance Corporation (Published June 3, 2022)