IsDB Pledges $300m to Fuel Africa’s Agro-Industrial Growth

… Confident Morocco-Nigeria gas pipeline project will drive regional cooperation

Ugo Aliogo in Marrakech

As one of the founding partners of the Alliance for Special Agro Processing Zone (ASAP-Z), Islamic Development Bank (IsDB) has pledged US$300 million to fuel Africa’s agro-industrial growth.

The Alliance for Special Agro Processing Zone (ASAP-Z) which was proposed by the African Development Bank Group, is set to transform African agriculture, bridging rural and urban development through Agriculture Transformation Centers (ATCs) and support smallholder farmers.

In an interview with THISDAY, yesterday in Marrakech, Morocco at the 2023 Africa Investment Forum (AIF) Market Days organised by African Development Bank Group, the Chief Executive Officer, International Islamic Trade Finance Corporation (ITFC), Hani Salem Sonbol, said the IsDB through its Food security response package (FSRP) would contribute to tackle the main challenges in Africa related to how to raise Africa’s food production and productivity.

He also stated that IsDB through its flagship programme such as the regional rice value chain and cassava value chain is financing projects with strong local supply links, interconnected and supported by an enabling environment.

He further explained that the Islamic Corporation for the Development of the Private Sector (ICD), the private sector financing arm of the IsDB Group, are actively supporting the continent through its financing to clients in the financial sector as well as those in the infrastructure, manufacturing and services sectors.

ITFC CEO expressed confidence that Morocco-Nigeria gas pipeline project would drive regional cooperation, adding that in line with the theme of this year’s AIF: “Unlocking Africa’s Value Chain”, the projects are indeed focused on harnessing value from the inherent strengths of the continent. “projects like the energy pipeline from Morocco and Nigeria will make positive contributions to all the relevant countries in the continent.”

According to him, “This forum is unique as it focuses on project investment and financing opportunities that are very transaction focused. AIF provides a unique platform for the project developers to interact with potential equity and debt providers directly. AIF fosters collaborations and helps the project developers to reach to the bankability and financing stage faster. All these ultimately results into investments and developmental impact.

“Through its cassava value chain programme, IsdB is developing new types of investment link to achieving true, industrialization, and trade to absorb the expected additional production, value addition and processed food products to contribute achieving zero hunger in Africa.

“IsDB is also financing projects to promote spatially defined agro-industrial investments and (ii) strengthen agriculture. The Islamic Corporation for the Development of the Private Sector (ICD) the private sector financing arm of the IsDB Group, are actively supports the continent through its financing to clients in the financial sector as well as those in the infrastructure, manufacturing and services sectors.

“Our expectation will be to have as many bankable projects as possible. End of this year’s AIF does not mean that the work will be done concerning the potential projects. Following the AIF event, the investors and lenders will be working closely with the project developers with a view to achieving successful financing and project implementation in an expeditious manner.”