IDB has approved a 25% participation in the equity capital of Al-Ebda’a Microfinance Institution, Sudan, promoted by AGFUND. Al-Ebda’a has a paid-up capital of US$ 5 million with 40% invested by AGFUND, 20% by the Sudan Government’s Microfinance Corporation, and 25% by IDB (SDG 3.27 million equivalent to US$ 1.25 million). The balance will be from the private sector. Capacity-building support for the management and staff of Al-Ebda’a would be ensured by AGFUND to allow the institution to get a head start from the beginning. The project is being introduced under the IDB Microfinance Development Program (IDB-MDP), which entails development of pilot Islamic microfinance projects. It is also in-line with IDB’s vision and various strategic thrusts such as Alleviating Poverty, Expansion of the Islamic Financial Services Industry, Prospering the People and Empowerment of Women. Al-Ebda’a will be able to provide over US$ 23 million in microfinance to about 80,000 clients by the 5th year of its operations.

The AGFUND was established in 1980 by HRH Prince Talal Bin Abdul Aziz Al Saud. Since establishment, it has supported and financed 1,268 projects in poverty alleviation, education, women and children in 133 countries. An MOU was earlier on signed between IDB and AGFUND, which lays down the foundation for the collaboration between the two institutions.