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News > Investors

IsDB backs Somalia Infrastructure Fund

Africa Global Funds
April 13, 2019, 9:32 p.m.
585

Word count: 326

The Islamic Development Bank (IsDB), a multilateral development bank, has agreed to contribute $3m to the multi-partner Somalia Infrastructure Fund (SIF). 

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The Islamic Development Bank (IsDB), a multilateral development bank, has agreed to contribute $3m to the multi-partner Somalia Infrastructure Fund (SIF). 

Established by the African Development Bank in October 2016, the Fund is one of the financing windows under the Somalia Development and Reconstruction Facility of the New Deal Compact for Somalia. 

It aims to support and accelerate Somalia’s inclusive and sustainable economic recovery, peace and state building, through rehabilitation and development of the country’s infrastructure.

The Fund takes advantage of the Bank’s existing Transition Support Facility to mobilize resources. 

Mansur Muhtar, IsDB Vice President for Country Programmes, said: “Establishment of the SIF shows the Bank’s commitment in supporting infrastructure development and enhancing the delivery of basic social services in Somalia.” 

The Islamic Development Bank’s move to channel its funds through the SIF reaffirms its commitments to partner with the African Development Bank in contributing to the development of their common member countries.

Nnenna Nwabufo, the Bank’s Deputy Director General for the East Africa Region, and Country Manager for Somalia, said: “The contribution by the Islamic Development Bank will add to the ongoing efforts of rehabilitating and developing key infrastructure in the water, transport and energy sectors.”
 
Since it became operational, the SIF has received support from the United Kingdom, Italy, the European Union, the Islamic Development Bank and the African Development Bank. 

Some of these funds have been used to finance three ongoing projects: Improving Access to Water and Sanitation Services in Somalia ($10.6m); Strengthening Institutions for Public Works ($7.8m); and Economic and Financial Governance Institutional Support Phase II ($7.8m).

Three additional projects funded at about $82m are currently being prepared for implementation within the SIF framework.
The Bank will continue to set aside resources for Somalia from internal sources and internally managed trust funds. 

These resources are expected to finance or co-finance about $40m worth of projects in the SIF pipeline over the next three years. 

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