IsDB Group to contribute $10.5bn package for global food security crisis

By Arya M Nair, Official Reporter
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The Islamic Development Bank (IsDB) Group has endorsed a $10.54 billion comprehensive Food Security Response Program (FSRP) package that will support member countries in addressing the ongoing food crisis.

This follows the Group’s continued efforts to contribute in strengthening its members’ resilience to food security shocks in the future.

The package was approved during an extraordinary joint meeting of the IsDB Board of Executive Directors, the Board of Directors of the Islamic Solidarity Fund for Development (ISFD), and the Board of Directors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

As part of the comprehensive package, the IsDB will contribute up to $5.7 billion in total financing to member countries, comprising new approvals worth $4.0 billion and fast-tracking of disbursements for existing projects worth $1.7 billion.

In addition, as part of its “One Group-One Goal” approach, the program involves significant and direct contributions by IsDB Group entities as follows:

  • International Islamic Trade Finance Corporation (ITFC): $4.5 billion in trade financing
  • Islamic Corporation for the Development of the Private Sector ( ICD): $269 million in private sector development operations
  • ISFD: $75 million in loans, grants, and capital resources, and
  • ICIEC: $500 million in political and credit insurance coverage.

To complement the financial package of the IsDB Group, the Islamic Development Bank Institute (IsDBi) will provide critical data, analytics, and evidence-based support for effective and impactful decision-making.

To jump-start the program, the financing package is expected to provide immediate financing of up to $3.2 billion, over the coming 18-month period, for short-term interventions by providing, (i) emergency food and agricultural supply, and (ii) social protection and livelihood support to the most vulnerable populations.

The primary focus of the program and the bulk of the financing envelope of the remaining $7.3 billion, which will span over the next three years, will be on developing innovative medium- and long-term interventions to address structural weaknesses and root causes of food insecurity in the member states.

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