Saudi Arabia-based Islamic Development Bank (IsDB) and International Fund for Agricultural Development (IFAD) have made a cooperation and co-financing agreement aimed at tackling climate change, improving food and water security and other strategic priorities in common member countries.
As part of the agreement, which was signed virtually by Dr. Bandar Hajjar, IsDB president, and Gilbert F Houngbo, president of IFAD, each of the two institutions will contribute $250 million over the next five years to achieve the goals.
“The renewal of our partnership comes at a time when the world is facing unprecedented socio-economic challenges caused by the COVID-19 pandemic. Food and water security are strategic priorities for IsDB member countries, most of which are in arid and semi-arid areas. Demographic growth and climate change are increasing the pressure on these vital resources.”
IFAD is an international financial institution and specialized agency of the United Nations (UN) that is dedicated to eradicating poverty and hunger in rural areas of developing countries. IsDB is a multilateral development finance institution that is focused on Islamic finance and delivering social and economic development in its member countries and muslim communities worldwide.
The coronavirus pandemic has forced governments around the world to consider ways of re-building more sustainable economies and use the crisis as an opportunity to tackle climate change challenges.
Mr. Hajjar noted that the IsDB-IFAD partnership will co-create financing and investment programs that will address food security and climate challenges and help member countries tap into emerging global value chain opportunities to build resilience and create wealth in a post-COVID-19 world.
The partnership will work on areas like agricultural and rural development projects, agribusinesses, improved access to markets and rural financial services, water for rural development and increased employment opportunities.