(MENAFN- Bensirri PR) Kuwait City, May 7, 2024—The International Finance Corporation (IFC), a member of the World Bank Group, and the Arab Fund for Economic and Social Development (AFESD) announced today that AFESD has joined the IFC's Master Cooperation Agreement (MCA), becoming the third signatory from the Arab region. This partnership underscores the shared commitment of both organizations to enhancing economic and social development through collaborative efforts.
Based in Kuwait, AFESD is an Arab regional financial institution focused on funding economic and social development by financing key public and private investment projects, along with providing essential grants and expertise. As part of the agreement, AFESD will mobilize US$500 million to support impactful projects that catalyze private sector growth and job creation across the fund’s member states.
The MCA serves as a co-lending platform that brings together over 30 multilateral and bilateral development banks. The platform is designed to streamline and standardize loan documentation processes, thereby enhancing operational efficiency for both borrowers and lenders. The partnership aligns with IFC's mission to source unique impact investing opportunities across its extensive network, benefiting private sector partners.
Mr. Bader Alsaad, Director General/Chairman of the Board of Directors, Arab Fund for Economic and Social said: “We are pleased to join the IFC's Master Cooperation Agreement and actively contribute to shaping the future of development financing across Arab nations. Through transparent and effective partnerships like this, we not only leverage our collective strengths but also enable transformative projects that are economically viable and socially imperative. Embodying our commitment to fostering sustainable development, we look forward to advancing projects that make a profound impact, foster sustainable development and reinforce our commitment to regional integration.”
"We welcome AFESD into the fold of our MCA signatories," said Hela Cheikhrouhou, IFC’s Regional Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan. "Their participation is a testament to our shared vision of leveraging finance for impactful projects that can make a real difference for people in emerging markets."
By joining the MCA, AFESD commits to working alongside IFC and other development institutions to identify and support viable firms in Arab League countries through impact loans. These loans are instrumental for reducing poverty, fostering economic growth, and paving the way for a sustainable and equitable future.
Since its establishment in 2010, the MCA program has successfully syndicated over US$12billion to more than 30 firms in developing countries over the past decade, showcasing the effectiveness of collaborative action in development finance.
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