How the IDC is helping the private sector & small businesses navigate COVID-19 shocks

The Islamic Corporation for the Development of the Private Sector (ICD), a key player in the financial sector, is stepping up to support small businesses during the COVID-19 pandemic. As the world grapples with the unprecedented challenges brought on by the global health crisis, the ICD is working closely with over 100 local and regional financial institutions in its network to provide essential support to small businesses impacted by the pandemic. Ayman Sejiny, the CEO of the ICD, emphasized the importance of sustaining the private sector and small businesses through these trying times. The pandemic has disrupted businesses worldwide, leading to closures, reduced trade, and limited activities due to government restrictions to control the outbreak. Small and medium enterprises (SMEs) are facing significant shocks, making it crucial to provide them with the necessary assistance to weather the storm. Sejiny highlighted that the ICD is focusing on COVID-19-related transactions, with a particular emphasis on ensuring that its member countries have access to the financial resources needed to navigate the challenges brought on by the pandemic. With 42 financial institutions in Africa alone, the ICD is allocating $250 million to support COVID-19 initiatives, urging its partners to prioritize pandemic-related requirements in their operations. The ICD's close collaboration with the financial institutions underlines its commitment to supporting SMEs and private sector resilience. The institution's efforts extend beyond immediate relief, aiming to build a stronger and more resilient private sector capable of withstanding future crises. Sejiny underscored the importance of financial institutions playing an active role in providing necessary financing and extensions to support businesses during these challenging times. Governments have also intervened by urging financial institutions to provide payment breaks and leniency on delays, reflecting the collective effort to alleviate economic burdens. Keeping sight of long-term goals, Sejiny emphasized the ICD's dedication to the Sustainable Development Goals (SDGs) and sustainable practices. The institution remains focused on sustainability, green initiatives, community empowerment, and employment generation to drive progress toward the SDGs. Embracing financial technology (fintech) as a pivotal tool, the ICD is enhancing financial inclusion and supporting SMEs through innovative solutions. Fintech is seen as the future of finance, enabling faster reach and greater efficiency, particularly in member countries. Sejiny highlighted the potential of blockchain and artificial intelligence to further enhance the ICD's initiatives in supporting SMEs and fostering economic growth. The ICD's unwavering commitment to supporting SMEs and sustaining private sector activities amid the COVID-19 crisis is commendable, reflecting a holistic approach to economic recovery and resilience. As businesses navigate the ongoing challenges, the ICD's strategic interventions and focus on long-term sustainability are poised to make a significant impact in helping SMEs thrive and promoting economic development.