21.12.2010, Jeddah, KSA - Islamic Development Bank (IsDB) Vice-President Dr. Birama Boubacar Sidibe and the Vice-president of the African Development Bank Group Dr. Kamal ElKheshen signed on Tuesday a billion dollar worth Memorandum of Understanding (MOU).

Under the document, the AfDB and IsDB each will earmark an amount equivalent to US$ 500 Million over a period of three years starting 2011, for co-financing of sovereign projects in their Common Member Countries.

The sectors of intervention are drawn from AfDB’s Medium Term Strategy and the IsDB’s Special Program for the Development of Africa focusing on priority areas namely: infrastructure, water and sanitation, regional integration, education, social infrastructure as well as agriculture and food security, institutional capacity building, training and statistics. “The objective of this MOU will be to foster economic development and social progress through coordinating co-financing projects as well as technical cooperation in Common Member Countries”, said AfDB Vice-President Kamal ElKheshen, adding; “This is aimed at reducing poverty level in the African continent and uplifting the level of revenues.”

The MOU between IsDB and the AfDB is anticipated to reinforce the ongoing cooperation and open up avenues for increasing the effectiveness of development policies through real partnerships between the two institutions. The two will also share their respective strengths, knowledge and resources to promote economic development in Africa.
AfDB and IsDB, established in 1963 and 1975 respectively, have been seeking similar agendas of tackling poverty, promoting economic development and spearheading human development and social progress within their member countries while IsDB reaches out for the realization of the same mandate in Muslim communities in non-member countries as well.

The Islamic Development Bank Group
The Islamic Development Bank Group is a Multilateral Development Bank set up in 1975 to bring further development to its 56 member countries. To date, it has also rendered developmental services to Muslim communities in 77 non-member countries. The Group comprises of five main entities, namely; the Islamic Development Bank (IDB), Islamic Research and Training Institute (IRTI), Islamic Corporation for Insurance of Investment and Export Credit (ICIEC), Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC). On May 29th, 2007, the Bank also launched, within itself, the Islamic Solidarity Fund for Development (ISFD) to address poverty alleviation challenges, illiteracy elimination and eradication of epidemics and to boost human development in the Organization of Islamic Conference (OIC) member states.

The African Development Bank Group
The AfDB Group has two major windows: the African Development Bank (ADB) and the African Development Fund (ADF). AfDB, established in 1963, contributes to the economic and social progress of its regional member countries - individually and collectively. Its main objective is to reduce poverty in regional member countries by providing loans and grants. The ADF contributes to the promotion of economic and social development in 38 low-income African countries by providing concessional funding for projects and programs, as well as technical assistance for studies and capacity-building activities.