IsDB Group announces a USD 10.54-billion package to respond to global food security crisis

JEDDAH, 29th July, 2022 (WAM) — The Islamic Development Bank (IsDB) Group endorsed a USD 10.54 billion comprehensive Food Security Response Program (FSRP) package that will support member countries in addressing the ongoing food crisis and, most importantly, scale up the Group’s continued efforts to contribute to 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 IsDB Group comprehensive package, the IsDB will contribute up to USD 5.7 billion in total financing to member countries, comprising new approvals worth USD 4.0 billion and fast-tracking of disbursements for existing projects worth USD 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: (i) International Islamic Trade Finance Corporation (ITFC) : USD 4.5 billion in trade financing; (ii) Islamic Corporation for the Development of the Private Sector ( ICD): USD 269 million in private sector development operations; (iii) ISFD: USD 75 million in loans, grants, and capital resources; and (iv) ICIEC: USD 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 USD 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 USD 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. These include low productivity, rural poverty, climate change, and weak resilience of regional and national agricultural and food systems through six (6) key initiatives: (i) building agricultural resilience to climate change; (ii) food and input value-chains; (iii) smallholders’ productivity and market access; (iv) rural livelihood support; (v) livestock and fisheries development; and (vi) building resilient food supply systems.

The total IsDB Group’s financing support for agriculture and food security currently stands at USD 20.6 billion, comprising 1,538 operations.