The Islamic Corporation for the Development of the Private Sector (ICD) signs MoU with China-Africa Development Fund to boost infrastructure investment and growth in selected African countries.
At the side lines of the landmark IsDB 42nd Annual Meeting in Jeddah, a memorandum of understanding (MoU) was signed between the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group and China-Africa Development Fund (CADFund), a Beijing-based private equity firm and subsidiary of the China Development Bank which focuses on Africa.
The envisaged cooperation reflects ICD and CADFund’s goal of developing and establishing a strategic framework that focuses on improving the efficiency and efficacy of resource mobilization with third-party investors interested in participating and investing in the African Islamic Infrastructure Financing Fund (AIIFF). In addition, CADFund plans to work with ICD in the establishment of the AIIFF and/or with the AIIFF (following its incorporation) on promoting and financing infrastructure development projects in Africa.
The MoU was signed by Mr. Khaled Al Aboodi, the Chief Executive Officer and General Manager of ICD, and Mr. Shi Jiyang, President and Chief Executive Officer of CADFund.
Speaking on the occasion, Mr. Khaled Al Aboodi expressed his strong support for the partnership, stating: “ICD and CADfund share the vision of promoting foreign direct investment, trade, and inclusive economic growth on a continent which is full of potential. By joining forces, we can better combine our expertise and commitment to achieve greater economic prosperity for the benefit of all.
Additionally, ICD’s commitment to accelerate infrastructure development in Africa and specifically sub-Saharan Africa will bring the at least the basic level of energy, transportation, medical and educational needs of citizens of African member countries.”
Mr. Shi Jiyang said, “It certainly comes as no news that Africa’s rating on the global infrastructure development index is significantly behind. By driving investments targeting infrastructure development projects in Africa, we will not only improve infrastructure and address the huge chasm, but we will also be contributing to economic growth thus further transforming the region. We look forward to a long-term partnership with the ICD.”
About the Islamic Corporation for the Development of the Private Sector (ICD)
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia’a. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. ICD is rated AA/F1+ by Fitch and Aa3/P1 by Moody’s.
About China-Africa Development Fund
CADFund is the first Chinese investment fund focusing on Africa, and was announced at the Beijing Summit of the China-Africa Cooperation Forum as one of the Eight Measures for cooperation with Africa. With its aim to encourage, support, and partner up with Chinese enterprises in making investments in Africa, CADFund has so far made investments in a variety of sectors including infrastructure, energy, agriculture and manufacturing.