VIENNA, Austria, June 20, 2023 – Dr. Muhammad Al Jasser, Chairman of the Islamic Development Bank (IsDB) Group, and Mr. Rémy Rioux, Chief Executive Officer (CEO) of Agence Française de Développement (AFD), signed a new Memorandum of Understanding (MoU) today to guide cooperation and co-financing from 2023 to 2028.

The MoU aims to reinforce strategic and operational collaboration between IsDB, a AAA-rated multilateral development bank from the Global South, and AFD, France’s leading bilateral aid provider. The collaboration will focus on project development and co-financing in developing countries, particularly in Africa.

To illustrate our enduring partnership, IsDB and AFD recently co-financed a large water and sanitation project in Cotonou, Benin, with €89 million from IsDB and €40 million from AFD in 2021. They have also jointly committed to financing a large-scale program in Nigeria focused on entrepreneurship, job creation, and support for the development of fast-growing industries.

Building on these experiences and recognizing their mutual expertise and knowledge in development financing, the MoU sets a target of US$1 billion (US$500 million each) for the period, aimed at co-financing projects aligned with the Sustainable Development Goals (SDGs) and the Paris climate agreement. The priority sectors for investment, where there is a growing demand from developing countries, include climate and green finance, sustainable infrastructure and urban development, resilient and inclusive agriculture and food systems, education, health and social services for all, and private sector development.

IsDB President Dr. Al Jasser, for his part, stated, “AFD is one of IsDB’s long-standing partners, having co-financed IsDB’s very first operation in 1976. Our partnership has since gone from strength to strength and yielded over US$4 billion in co-financing, supporting total investment worth over US$10 billion, mainly in the infrastructure sector. I am highly confident that the new Memorandum of Understanding AFD and IsDB signed today will give a new impetus to our partnership and collective support to mutual client countries towards the attainment of the Sustainable Development Goals.”

"I am very pleased today to sign our new joint Memorandum of Understanding with the IsDB. It concretely sets financial objectives, priority sectors of collaboration and a basis for operational exchanges at regional hub levels as well as at general management levels, to achieve them. It is exactly what we aim to do at a larger scale in the Finance in Common Movement, representing 530 public development banks, be they bilateral, regional, multilateral or domestic, which can all contribute to redirect investment flows towards the SDGs,” commented CEO, Mr. Rémy Rioux.