IsDB Chairman Al Jasser says $36bn lending shows Africa’s significance

In a recent interview on CNBC Africa, Chairman of the Islamic Development Bank (IsDB) group, Muhammad Al Jasser, shed light on the organization's efforts in Africa over the past 50 years. With total lending to Africa amounting to just over $36 billion, Al Jasser highlighted the continent's significance within the group. The Arab Coordination Group also pledged to allocate $50 billion to help build resilient infrastructure and inclusive societies in Africa. The Islamic Development Bank, based in Riyadh, Saudi Arabia, serves 57 member countries, with half of the sub-Saharan African nations being members, particularly West Africa playing a major role. Over the past five decades, the bank and its member institutions have approved over $181 billion in funding, making a substantial impact on the development of member countries. Al Jasser emphasized the importance of celebrating past achievements while also focusing on future growth and continued support to member nations. Al Jasser expressed pride in the bank's operations in Africa, highlighting the $36 billion lent to the continent out of the total $182 billion over 50 years. This significant investment has positioned Africa as a crucial partner for the Islamic Development Bank, leading to the African Union granting the bank a permanent observer status in recognition of its contributions to the continent. The Chairman stressed the importance of measuring the impact of the bank's interventions beyond financial assistance. Emphasizing the need to improve lives, livelihoods, education, and health, the bank has developed a results-based management framework to track outcomes and ensure meaningful progress in member countries. This focus on accountability and impact aligns with the bank's commitment to sustainable development. Beyond financial assistance, the acceptance of Islamic finance products in the Global South is on the rise. S&P Global Ratings project a 10% growth in the industry by 2024, with a significant increase in sustainability-linked Sukuk issuances. Al Jasser shared his experience in promoting Sukuk in Guinea and Sierra Leone, emphasizing the importance of expanding Islamic financial services in these countries. Looking ahead, the Islamic Development Bank is working on partnerships and initiatives to introduce Islamic financial services in Sierra Leone, aiming to establish an Islamic financial institution offering a range of Sharia-compliant products such as Sukuk and Alkaf. This strategic plan aligns with the bank's focus on fostering financial inclusion and expanding Islamic finance opportunities in member countries. As the Islamic Development Bank's interventions and the adoption of Islamic finance products continue to grow in Africa, the challenge remains in mainstreaming these products beyond the Global South. The bank's efforts, along with collaborations with Arab partners, are instrumental in driving economic growth, infrastructure development, and financial inclusion across the continent. In conclusion, the Islamic Development Bank's $36 billion lending in Africa and its strategic focus on impact assessment and expanding Islamic finance services underscore a commitment to sustainable development and inclusive growth in member countries.