The Islamic Development Bank (ISDB) has endorsed a comprehensive Food Security Response Program (FSRP) package worth USD10.54 billion in an effort to help member countries address the annoying food crisis. The package will also scale up the continued efforts of the Group to strengthen members’ resilience to any future food security shocks.
The FSRP package was approved after an extraordinary joint meeting between the IsDB Board of Executive Directors, Board of Directors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and the Board of Directors of the Islamic Solidarity Fund for Development (ISFD).
ISDB to finance member countries
As part of the comprehensive package that was approved, IsDB is slated to contribute USD5.7 billion in financing to member countries. This financing will include new approvals worth USD4 Billion, and disbursements for existing packages worth USD1.7 Billion.
The financing package will involve contributions by IsDB Group entities, which include USD4.5 Billion in trade financing from International Islamic Trade Finance Coorporation (ITFC); USD269 million in private sector development from the Islamic Corporation for Development of the Private Sector (ICD); Loans, grants and capital resources worth USD75 million from ISFD and USD500 million in political and credit insurance coverage from ICIEC. These contributions will be made as part of the Group’s One Group – One Goal approach.
The Islamic Development Bank Institute (IsDBi) will supplement the financial package of ISDB by providing analytics, critical data and evidence-based support to enhance effective and impactful decisions.
The program will be catalysed by an immediate financing package of USD3.2 billion to enable short term interventions by providing food and agricultural supply, and social protection and livelihood support to vulnerable populations.
The main focus of the financing program worth USD7.3 billion will be spread over three years, and will develop unique interventions that will address root causes and structural weaknesses of food insecurity of member states.
These interventions will include addressing rural poverty, low productivity, climate change and low resilience of regional and national agricultural and food systems. The interventions will include six key initiatives, which will focus on building resilience to climate change, smallholders productivity and market access, food and input value chains, rural livelihood support, livestock and fisheries development and building robust food supply systems.