At ICD, we believe that effective multilateral partnerships and strong engagement with communities and relevant stakeholders are essential in the achievement of sustainable development.
Over the course of 2022, ICD has capitalized on its established network of partnerships which include multilateral development banks, development finance institutions, sovereign wealth funds, financial institutions, central banks and technical advisors. In line with our core mandate, ICD’s key priorities are to develop the private sector through the provision of financing solutions and thereby to contribute to the SDGs. Thus, ICD identified several partners with similar mandates and objectives, and we have established a number of strategic partnerships and collaborative efforts that will help us achieve lasting synergies.
These synergies and partnerships included:
Technical Coordination Committee (TCC)
ICD has been working very closely with IsDB Group entities, namely ITFC and ICIEC, to foster greater intra-group partnerships and cooperation. This was achieved through regular TCC meetings and Entities’ CEOs Meetings. In 2022, ICD, ITFC and ICIEC agreed to implement joint Key Performance Indicators (KPIs) to drive stronger engagements and an increased volume of co-financing activity between group entities. 2022 was a successful year for TCC in terms of engagements, the shared deal pipeline and approvals.
IsDB Group Synergy Enhancement “One Bank, One Group”
IsDB Group Synergy was recognized as an area requiring greater focus, being a pivotal guiding principle in the implementation of the 10-Year Strategy 2016-25 (10YS) of the Bank. Throughout 2022, ICD was actively involved in the Group Executive Coordination Meeting (GECM) and the Group Synergy FacilitationTeam (GSFT) to draft, review and implement the Group Synergy Enhancement Agenda of the IsDB Group.
IsDB Working Group 3 Partnerships (WG3)
ICD has been working very closely with IsDB, ITFC and ICIEC to increase collaborative efforts with Multilateral Development Banks (MDBs), Development Finance Institutions (DFIs), Sovereign Wealth Funds (SWFs), Development Agencies (DAs) and International Financial Institutions (IFIs). In 2022, ICD participated in the WG3 monthly meetings and shared monthly reports on major coordination activities and achievements related to the Food Security Response carried out with partner DFIs and IFIs.
Newly established Partnerships and MoUs
ICD initiated and signed multiple agreements with new partners in 2022. This included a Lines of Finance for Africa and Asia agreement with the Arab Fund for Economic and Social Development (Arab Fund), and an agreement with Africa Finance Corporation (AFC) on pipeline sharing and co-financing. ICD had active engagements with multiple MDBs and DFIs, and an MoU for co-financing with Abu Dhabi Islamic Bank Egypt.
In-depth review of Partnership MoU and Action Plans with partner MDBs/DFIs
In coordination with the IsDB, ICD carried out an in-depth review of the following Partnership MoUs: i) African Development Bank – IsDB Group MoU; ii) Asian Development Bank – IsDB Group Framework Cooperation and Co-financing Agreement; iii) Inter-American Development Bank – IsDB Group MoU, and iv) BADEA – IsDB Group MoU.
Asian Infrastructure Investment Bank (AIIB)
In September 2022, ICD organized a workshop with AIIB where ICD’s Infrastructure Corporate Finance and Lines of Finance teams and AIIB Infrastructure Investment Department shared their experiences in common member countries in the Asia and Africa regions. Both teams also discussed the structure of their products and co-financing opportunities.
The Arab Bank for Economic Development in Africa (BADEA)
In May 2022, ICD organized a workshop with BADEA at ICD’s headquarters with the participation of the Risk Management, Compliance, Internal Audit, and Legal teams. The workshop covered ICD’s and BADEA’s risk management structure and process, credit risk and market risk, and legal process related to both entities’ operations and corporate activities. ICD Compliance team also showcased a presentation on the anti-money laundering and anti-corruption policy implemented in 2020.
British International Investment (BII)
ICD organized a virtual workshop between ICD’s Development Effectiveness and Compliance and BII’s Environmental Social Governance and Business Integrity teams. The workshop program focused on BII’s and ICD’s institutional policy, procedure for Environmental and Social Governance, the roles and functions of Environmental and Social Governance and on developing an understanding regarding the policy and strategy of both institutions in order to strengthen their partnership and accelerate progress on exploring co-financing opportunities.
CrossBoundary
ICD organized a virtual workshop between ICD MENA, the IsDB and the CrossBoundary team to discuss CrossBoundary and the United States Agency for International Development (USAID) Business Growth Activity (BGA) program in Jordan. The session also covered the scope and scale of Islamic finance for IsDB’s activities in Jordan, including target sectors and investment as well as potential avenues of collaboration between IsDB and BGA in Jordan.
International Financial Corporation (IFC) Middle East, Afghanistan, and Pakistan
In April 2022, ICD organized a virtual knowledge sharing session with the IFC Egypt team. During the session, the ICD-ICF team and IFC discussed opportunities for co-financing in the power and energy sectors in Egypt. Subsequently, in May 2022, ICD and IFC jointly organized a workshop chaired by the Acting CEO of ICD, where the Infrastructure and Corporate Finance and Sukuk teams and IFC discussed the mechanism for developing regional engagements and sharing a pipeline. Both teams also exchanged knowledge on local currency financing. Both regional teams agreed to have monthly meetings to discuss the pipeline projects and co-financing opportunities.
In November 2022, ICD organized a meeting with IFC Jordan and Iraq at ICD’s headquarters. During the meeting, the Head of IFC Jordan and Iraq, the IFC Team, and IsDB PPP discussed IFC pipeline projects in Jordan and Iraq and opportunities to co-finance projects in MENA led by IFC and healthcare projects in Jordan.
International Financial Corporation (IFC) Central and West Africa
ICD had several engagements during the year with IFC Central and West Africa. In April 2022, the ICD Partnerships Unit had a virtual meeting with the IFC Central and West Africa office, in which the ICD team shared the potential for equity investment in Africa, and the IFC team shared information about IFC’s focus on investing in affordable housing projects in Africa.
Proparco, AFD Group
In January 2022, ICD organized a workshop between the ICD LoF team, Sukuk team, ICF, and the Proparco Guarantees and Risk Sharing teams. During the session, the ICD and Proparco teams exchanged experiences and knowledge regarding project finance in African member countries. The discussions also covered potential partnerships opportunities in Lines of Finance to Financial Institutions (FIs), risk-sharing solutions and Sukuk. Proparco and ICD agreed to organize deep dive sessions on Lines of Finance and Sukuk.
Trade and Development Bank (TDB)
ICD organized a workshop on ICD Sukuk Advisory in April 2022, where ICD Sukuk team showcased a detailed presentation on ICD’s Sukuk Advisory to TDB teams. During the session, TDB’s Syndication and Infrastructure teams, along with ICD’s Infrastructure Corporate Finance team, discussed project pipelines in common member countries, including, Egypt, Mozambique, and Comoros.
Africa Investment Forum (AIF) Partners meeting
The Africa Investment Forum (AIF) is Africa’s investment marketplace, championed by the African Development Bank (AfDB) and its partners, to accelerate the closure of the continent’s investment gaps. ICD represented the IsDB Group in the AIF platform throughout 2021 and 2022 and has actively engaged with AIF founding members and project sponsors for co-financing deals originated by the AIF deal development platform. In April 2022, ICD participated in the AIF Market Days. The event featured 63 deals worth USD 46.9 billion, from which IsDB Group shortlisted 30 deals. ICD’s ICF team also participated in the virtual Deal Rooms sessions for Trade-Infrastructure projects, and Infrastructure and Transport projects in the ECOWAS Region: Côte d’Ivoire, Ghana, Togo, Benin, and Nigeria. Subsequently, in November 2022, the Acting CEO of ICD, represented H.E. the President of IsDB Group during the AIF Market Days held in Abidjan on 2-4 November 2022. The event was also attended virtually by IsDB Group colleagues. The technical teams from IsDB-PPP, ICD-ICF and ICIEC attended several Deal Rooms to explore deal opportunities that would be of interest for co-financing, co-investment, and de-risking. ICD attended nine Deal Rooms virtually, including deals for hydropower projects, affordable housing projects, renewable energy projects, and transport and infrastructure projects in Southern Africa and Central Africa member countries.
ICD leading the Investment Pillar under the Arab-Africa Trade Bridges Program (AATB)
The AATB Program is a regional trade promotion program that aims to address some of the challenges faced in promoting trade between the two regions. The AATB Program is expected to increase investment and trade between the Arab and African regions, and it covers different dimensions including infrastructure financing and advisory and technical assistance. ICD’s role is focused on the Investment Pillar. In 2022, ICD’s intervention focused only on Lines of Finance to eligible Financial Institutions: ICD secured the approval of USD 50 million to Afreximbank (ITFC syndication of a USD 100.00 million LoF), with a target disbursement in Q1 2023. This LoF will contribute to increase access to finance for private sector SMEs, including those involved in trade between Arab and African countries. Several additional LoF transactions are expected to reach IC stage in 2023. Furthermore, ICD will use both direct (Term Finance) and indirect (LoF) intervention mechanisms in 2023 to tackle priority AATB themes such as food security.