At the side lines of the landmark China-OIC Forum 2016 in Beijing, a memorandum of understanding (MoU) was signed between the Islamic Corporation for the Development of the Private Sector (ICD) the private sector arm of Islamic Development Bank (IDB) Group and China-Africa Development Fund (CADFund), a Beijing-based private equity firm focusing on Africa.
The MoU seeks to enhance trade and investment opportunities in 19 African countries through co-financing and co-investments, with the aim of promoting inclusive growth and financial inclusion.
Research collaboration and capacity-building programs that are tailored and demand-driven will also be conducted to better serve target markets. In addition, efforts will be focused on boosting support for African small-and-medium enterprises (SMEs), widely recognized as an important economic driver and key contributor to sustainable GDP growth.
The MoU was signed by Mr. Khaled Al Aboodi, the Chief Executive Officer and General Manager of ICD, and Mr. Shi Jiyang, Chief Executive Officer and President of CADFund.
During the signing ceremony, Mr. Khaled Al-Aboodi commented:
“ICD and CADfund are founded on similar principles and mandate. We share the vision of promoting trade, foreign direct investment and inclusive economic growth on a continent which is full of potential.
By joining hands, we can better combine our expertise and commitment to achieve greater economic prosperity for the benefit of all. Additionally, as we focus on the SME sector, we hope to unleash entrepreneurial energy and help attract private investment in ideas that are new, inspiring, and useful.”
Shi Jiyang said, “In recent years, although Africa’s economy has grown rapidly, questions are sometimes raised regarding the sustainability of this growth. I believe this MoU has an important role to play. It will not only help stimulate business and investment in Africa moving forward, but it will also contribute to the sustainable economic development of the selected African countries by expanding the private sector and most importantly, creating quality jobs.”
About Islamic Corporation for Development of the Private Sector (ICD)
ICD is a multilateral organisation and a member of the Islamic Development Bank (IDB) Group.
The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Sharia’a.
ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises.
About China-Africa Development Fund
CADFund is the first Chinese private equity investment fund focusing on Africa, and was announced at the Beijing Summit of the China-Africa Cooperation Forum as one of the Eight Measures for cooperation with Africa.
With its aim to encourage, support, and partner up with Chinese enterprises in making investments in Africa, CADFund has so far made investments in a variety of sectors including infrastructure, energy, agriculture and manufacturing.