The Islamic Development Bank (IsDB) has expressed plans to invest up to $7.8 billion in agriculture and rural development in Africa over the 5-year period (2023-2027).
This was revealed by the President of the bank, Dr. Mohammad Al Jasser, after a meeting with the President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, on the sidelines of IsDB’s ongoing 2023 Group Annual Meetings in Jeddah, Kingdom of Saudi Arabia.
During the meeting, the two leaders exchanged views over ways and means to jointly strengthen cooperation and tackle global challenges.
Al Jasser, who expressed satisfaction with the cooperation between IsDB and AfDB, noted that the two institutions have cumulatively co-financed projects worth over $8.3 billion in their 27 common member countries, therefore, the group is considering more interventions for the region especially in areas of agriculture and rural development.
He said, “The IsDB is planning to invest up to $7.8 billion in agriculture and rural development in Africa over the 5-year period 2023-2027 and that climate finance is set to represent 35% of IsDB’s annual commitments by 2025, with 65% of climate finance for adaptation.”
He asserted that these successive external shocks have compounded the fiscal constraints and elevated debt levels in many countries, leading to the specter of another debt crisis in many African countries, especially Low-Income Countries (LICs).
Al Jasser stressed the importance of addressing the water-agriculture-energy nexus in light of climate change, especially in the Sahel region, and the need to help African countries mitigate the impact of low-carbon and digital transitions to accelerate their development process.
He emphasized that the efforts are part of IsDB’s commitment to promoting sustainable development and addressing the challenges facing its member countries, particularly in Africa, and that cooperation with AfDB will continue to be an important part of these efforts.