IsDB launches $10.5 bln program to address food crises in member countries

Doaa A.Moneim , Sunday 31 Jul 2022

The Islamic Development Bank (IsDB) has launched a Food Security Response Program (FSRP) worth $10.5 billion to support the bank’s 75 member countries, including Egypt, to address the ongoing food crisis amid the Russian-Ukrainian war.

File Photo: An Egyptian farmer in a wheat field. AP


This facility is expected to provide $3.2 billion in immediate financing for the IsDB’s member countries over the upcoming 18 months for short-term acquisition of urgent agricultural and food supplies as well as supporting social protection in the most vulnerable countries.

The FSRP’s key focus over the next three years is improving early innovative interventions over the medium and long-term in order to tackle weaknesses and to deal with the causes of food insecurity in member countries.

This will be executed through six initiatives; including building the agricultural capabilities in terms of climate change adaptation, supporting input and food value chains, boosting small farmers productivity and supporting access to new markets, supporting people in rural areas, developing the livestock and fisheries and building flexible food supply systems.

Ongoing IsDB financing dedicated to food security and agriculture development is worth $20.6 billion spread over 1,538 operations.

This financing includes $5.7 billion for the IsDB’s member countries and to support their ongoing projects in this regard.

The FSRP contains direct contributions provided by the IsDB’s affiliated organisations, including $4.5 billion dedicated to finance trade from the International Islamic Trade Finance Corporation (ITFC); $269 million for private sector financing from the Islamic Corporation for the Development of the Private Sector (ICD); $75 million in loans, grants and capital resourced from the Islamic Solidarity Fund; and $500 million from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

Egypt has been an IsDB member country since 1974 and one of its founders, with 7.19 percent of the Bank’s total subscribed capital.

Since then, total project portfolio between the IsDB Group and Egypt has amounted to $17.8 billion.

This portfolio covers energy (60 percent), agriculture (18 percent), real estate (11 percent) and mining (nine percent).

In May, the IsDB launched its first regional headquarters in Cairo during the group's 2022 annual meetings, which were held in Sharm El-Sheikh under the auspices of Egypt’s President Abdel-Fattah El-Sisi.

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