The African Development Bank (AfDB) has signed an agreement with Islamic Development Bank to partner on USD$2 billion in project financing for renewable energy, health, food security and other key initiatives in Africa.
Each partner will contribute $1 billion over the next three years to support economic transformation on the continent by focusing on key sectors, the AfDB announced on Tuesday.
“Today’s meeting is about collaboration and partnership,” said Akinwumi Adesina, president of the AfDB based in Abidjan. Adesina noted that AfDB and Islamic Development Bank share traits that help to take the agreement to the highest level of commitment and performance.
“We are going to work on a pipeline of projects in Africa stretching from agriculture to SMES, energy and human development,” Adesina said. “We need to create jobs for our women and youth.”
IsDB is among the largest contributors of co-financing to the Bank, with a history of projects dating back 15 years. The AfDB has a presence in 21 of 27 common member countries with the IsDB, which is based in Saudi Arabia.
“We look forward to working with the AfDB in moving SMEs towards industrialization, renewable energy and agriculture and food security,” said IsDB president Bandar Hajjar. “These areas will create jobs and lead to economic transformation and improve the lives of the people of Africa.”
Africa is the third-fastest growth region for Islamic finance, behind the Middle East and Asia, as the IsDB is renewing its commitment to support development in African countries.