IsDB contributes $3.8 bn for implementing 57 projects in Egypt

14 / 07 / 2020

By Marwa Nassar - -

The Islamic Development Bank (IsDB) has contributed a total of $ 3.8 billion dollars for implementing 57 projects in Egypt.

IsDB Chairman Dr Bandar Hajjar said the bank is keen on providing the necessary support for Egypt to overcome the Covid-19 pandemic crisis.

He made the remarks during a recent video conference with Egyptian Ministers Dr Hala Al-Saeed of Planning and Dr Rania Al-Mashat of International Cooperation.

During the meeting, the discussions touched upon the negative impact of the Covid-19 pandemic and the IsDB’s readiness to provide Egypt with $126 million to support its efforts in combating the pandemic.

The IsDB also contributed $200 million through the International Islamic Trade Finance Corporation (ITFC) to support the Egyptian government in purchasing strategic commodities and make them available on an urgent basis during the Covid-19 pandemic.

Furthermore, the Islamic Corporation for the Development of the Private Sector (ICD) and the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC) are working with all institutions and organizations concerned in Egypt to consider providing the necessary financings to achieve food security and financing micro, small and medium projects to support their working capital.

Hajjar also said that the long term IsDB-Egypt partnership resulted in providing Egypt with financings amounting to $12.8 billion to date.

This IsDB financing package included $1.9 billion for projects, while ICD earmarked $ 230 million for private sector financing operations. The ITFC allocated $ 8.9 billion for trade financing operations.

Other IsDB funds and programs contributed financings amounting to about $1.8 billion. In addition, ICIEC provided $2.4 billion in trade transactions insurance, and $3 billion in new insurance commitments.

Hajjar noted that energy comes at the front of sectors financed by the IsDB with 19 projects totaling $1.6 billion accounting for 80.7% of IsDB interventions in Egypt.

The remaining of the financing is allocated to the urban development, industry and mining and transport sectors, which account for 8.7% of the total IsDB projects ($169 million).

The IsDB contributions to microfinance institutions and small and medium enterprises account for 4.1% of the total IsDB interventions ($81 million), while the health and education sectors account for 4% ($77.5 million) and 2.4% of the interventions ($47 million) go to the agriculture and irrigation sector in addition to capacity building projects and Islamic finance industry development.

Furthermore, the IsDB institutions have also contributed to developing and encouraging the trade and exports sector and supporting the private and the insurance sectors with contributions amounting to more than $13.2 billion.

IsDB support to Egypt focuses on the achievement of eight Sustainable Development Goals (SDGs) that cover poverty and hunger eradication, achieving good health, improving the quality of education, providing clean energy and potable water, crating decent employment opportunities especially for youth and women, creating sustainable infrastructures, assisting industry and the innovation and creativity environment.