the islamic development bank group - journal de la · pdf filethe islamic development bank...

The IDB Group and Cameroon

The Islamic Development Bank Group Together We Build A Better Future

Sequence

i. Overview of the IDB Group

ii. Cameroon and IDB Group Membership

iii. IDB Projects by Mode of Finance

iv. IDB Projects by Sector

v. Projects Status in Cameroon

vi. Examples of past IDB projects in Cameroon

vii. Approvals Trend for Cameroon

viii. Disbursement Trend for Cameroon

ix. Portfolio Performance in Cameroon

x. Future Areas of Co-operation with Cameroon

OVERVIEW OF THE IDB GROUP

IDB Group at a Glance

Key Features

MDB of the Islamic World

South-South Development

Financing Institution

Solidarity-based

Shariah-compliance

Pioneer in Trade Finance

AAA-rated

37 Years in the Service of Development

1396-1433H /1975-2012G

1975

2012

1994 2008

1981

IDB Group 1999


Our Member Countries

Africa: 27 Asia: 26

Europe: 2

Latin America: 1

A Unique Model of South-South Cooperation

All Member Countries can benefit from IDB Financing

Global MDB: Membership 56 Countries spreading over 4 continents

Membership Increased: 22 countries in 1975 → 56 countries in 2012


Islamic Development Bank The Bank’s mandate is to promote, comprehensive human

development in the Muslim World Offer development financing

Promote Islamic Financial Services Industry

Provide knowledge services for development

Build capacity & promote technical cooperation

37 Years After

› 56 Member Countries › Authorized: ID 30.0 billion

› : US$ 46.5 billion › Subscribed: ID 18.0 billion

› : US$ 27.9 billion

› 22 Member Countries › Authorized

› : ID 2.0 billion › : US$ 3.2 billion

› Subscribed › : ID 750 million › : US$ 1,200 million

Inception

1396H / 1975G 1433H / 2012G

Currency Equivalent: ID 1.0 = US$ 1.55


IDB’s Major Shareholders

Saudi Arabia, 23.61%

Libya, 9.47%

Iran, 8.28%

Nigeria, 7.69% Qatar, 7.21%

Egypt, 7.10%

Turkey, 6.48%

UAE, 5.81%

Kuwait, 5.48%

Others, 15.96%

Source: Treasury Department, February 2011

Of IDB’s 56 member countries, 9 Members Countries make up about 83% of the total shareholding of IDB


IDB’s Rating Affirmations

“Aaa” & ‘P-1’ Short-Term

“AAA” & ‘F1+’ Short-Term

“AAA” & ‘A-1+’ Short-Term

EU Zero Risk Weight

“Stable” Outlook




IDB

Group

President ICD 1999

BOARD OF GOVERNORS

BOARD OF EXECUTIVE

DIRECTORS

IRTI 1981

ICIEC 1994

ITFC 2008

IDB Organizational Chart


Members / Entities of the Group

International Islamic Trade

Finance Corporation (ITFC)

Islamic Research & Training

Institute (IRTI)

The Islamic Corporation for the

Insurance of Investment and

Export Credit (ICIEC)

Islamic Corporation for the

Devt. of the Private Sector

(ICD)

Serve as research and training arm of the

IDB,

Lead development of the Islamic Financial

Services Industry (IFSI) to support socio-

economic development of MCs.

Activities: training, research, advisory,

capacity building, etc.

Boost trade among OIC Member

Countries,

Offer Shariah-compliant export credit

insurance and re-insurance

Provide political risk insurance to

encourage investment flows.

Promote private sector development in

Member Countries,

Facilitate access to Islamic capital

markets,

Mobilize additional financial resources

for private sector,

Promote entrepreneurship, and

encourage cross- country investments.

Advance trade across the Islamic

world,

Encourage intra-trade across OIC

Member Countries,

Help businesses to better access trade

finance, and

Provide businesses with the necessary

trade-related capacity building


5 COUNTRY GATEWAY OFFICES To be established in 1433/34H

Nigeria Bangladesh

Egypt

Turkey

Indonesia

Group Geographic / Field Presence

4 REGIONAL OFFICES

Senegal Kazakhstan

Malaysia Morocco

Jeddah

HEADQUARTERS

Dubai Office

14 Field

Representatives

Afghanistan Azerbaijan Bangladesh Burkina Faso Guinea Indonesia Iran Mali Nigeria Pakistan Sudan Turkmenistan Uzbekistan Yemen

+

+


Accomplishments

Group Cumulative Approvals: US$ 85.0 billion > Project Financing US$ 40.8 billion (48.0%)

> Trade Financing US$ 43.5 billion (51.2%)

> Special Assistance US$ 0.7 billion ( 0.8%) From IDB OCR only

8,502

-

2,000.00

4,000.00

6,000.00

8,000.00

US

$ M

illio

n

Year

Yearly Approvals since Bank Inception

( in US$ Million [Nominal] )

From Bank Inception to end of Q3, 1433H


Cumulative Approvals by Sector (OCR)

Agriculture, 10.9%

Education, 8.6%

Energy, 22.8%

Finance, 4.4%

Health, 5.0%

Industries & Mining, 9.6%

Other, 1.6%

Transport, 24.9%

Urban Services, 12.2%


“Vision for Human Dignity”

Vision Statement

“By the year 1440 Hijrah, IDB shall have become a world-class development Bank, inspired by Islamic principles, that has helped significantly transform the

landscape of comprehensive human development in the Muslim World and help restore its dignity”


Comprehensive Development Agenda

Nine Key Strategic Thrusts:

1. Reform IDB

2. Alleviate Poverty

3. Promote Health

4. Universalize Education

5. Empower Women

6. Prosper the People

7. Expand the Islamic

financial Industry

8. Facilitate Integration of

IDB Countries

9. Improve the image of the

Muslim World

Mission Statement

Promote comprehensive human development, with a focus on the priority

areas of alleviating poverty, improving health, promoting education, improving governance and prospering the people”


Reforms at IDB

Results Oriented

Leveraging Partnerships

Knowledge-Oriented

Responsive to Clients

A New IDB Group

Scaled up

Focused

MCPS Framework

MCPS and

Results

Framework

Country National

Development

Strategy

IDB Vision 1440H

and Results

Framework

Consultations Government

Development Partners

Civil Society

Private Sector

Academia

Research Institute

Knowledge Repository

inputs Diagnostic and Analytical Papers

Sector and Thematic Assessments

Sector Road Maps

Self and Independent Assessments

Consultation Seeks Common Grounds

Diagnosis

Completed MCPSs: Turkey, Indonesia, Uganda, Mauritania, Mali, Pakistan, Senegal, Malaysia, Bangladesh, Kuwait, Morocco and Kazakhstan


Uniqueness of the MCPS – Reverse Linkages

IDB MCs specific expertise, knowledge, know-how, investments,

success stories, best practices, etc.

Asia and Surinam

CIS and Europe

West Africa

East, South & Central

Africa

Arab Africa

Arab Asia

Reverse Linkages (RLs) are specific activities for mainstreaming “South-South” Development Approach


Example of Reverse Linkages - Uganda

Nerica High Yield

Rice

HIV Control

Statistics Production

and Analysis

PPP Legal FW, Oil

Resource Mgmt.

From Other IDB MCs to

Uganda


Development of the Islamic Financial Services Industry

Project Financing Public (Sovereign) Private (Non-Sovereign) and Public-Private Partnerships (PPPs)

Trade Financing & Promotion of Intra-Trade between Member Countries

Capacity Development & Technical Cooperation

Insurance of Investment & Export Credit

Islamic Economics & Finance Research and Training

Fund / Asset Management

Group Products and Services

Special Products Science & Technology Program

Scholarship Programs

Special Assistance


Modes of Financing

Concessional

Loans Grants

Ordinary

Leasing

Installment Sale

Istisna’a (Construction Financing)

Equity

Profit Sharing

Lines of Financing

Murabaha (Trade Financing)

Restricted Mudarabah


Special Funds, Programs & Initiatives

Special Program for the Development of Africa (SPDA)

• Aims to support investments in social & infrastructure sectors in Sub-Saharan Africa

• Total Size: US$ 12 billion (US$ 4 billion from IDB Group) over 5 years (2008-2012)

• Next: SPDA-2 – Follow-up program to SPDA

Islamic Solidarity Fund for Development (ISFD)

• Dedicated facility to fight poverty • Target Endowment of US$ 10 billion • Flagships: Integrated Community Driven Development

(ICDD), Vocational Literacy (VOLIP), Microfinance, Future- Sustainable Villages, IDB Social Business

Youth Employment in Arab Countries

• High-level of Unemployment amongst Youth in Arab Countries identified as one of the key causes for recent political turmoil and unrest

• Total Size: US$ 250 million (2011-2012) • Areas: Micro-Finance, Vocational Training, Entrepreneurship

development, MSME Development, providing advisory services


Major Development Partners Coordination Group

MDBs / Bilaterals / International Organizations

Arab Gulf Program for Development


IDB Interventions in Cameroon

Cameroon became a Member of…

IDB in 1977

ICIEC 1992

ICD in

2001

ITFC in 2007

T h e I s l a m i c D e v e l o p m e n t B a n k G r o u p h t t p : / / w w w . i s d b . o r g Slide 24

معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE

ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR


Projects by Mode of Financing

Mode of Finance

No. of Ops Amount US$

Equity 2 10

Instalment Sale

4 28

Istisna'a 4 115

Loan 28 196

T.A. Grant 11 2

Total 49 350 0

20

40

60

80

100

120

140

160

180

200

Equity I/Sale Istisnaa Loan TA Grant

2 4 4

28

11 10

28

115

196

2





Projects by Sector

Sector No. of

Ops Amount

US$

Agriculture 19 112

Energy 2 17

Social Services 11 63

NDFIs & Microfinance

2 1

Industry 2 10

Water/Sanitation 4 24

Trans & Comm. 9 122

Total 49 350

112

17

63

1 10

24

122

Amount US$ Million

Agriculture

Energy

Social Services

NDFIs & Microfinance

Industry

Water / Sanitation

Transp & Comm





Project Status

Project Status No. of Ops US$

Under Implementation

22 260

Completed 27 90

Total 49 350





Examples of IDB Projects in Cameroon

The Limbe

Shipyard

Approved: 10 September 2001 IDB Financing : US $ 14 mil Mode of Finance: Istisnaa

Sanglemima-

Djoum Road

Approved: 18 August 2009 IDB Financing : US $ 64 mil Mode of Finance: Istisnaa

Song-Loulou

Hydro Electric

Power

Approved: 18 October 1976 IDB Financing : US $ 7 mil Mode of Finance: Loan

Rural

Electrification

Approved: 11 September 2005 IDB Financing : US $9.5 mil Mode of Finance: Loan





Approvals Trend for Cameroon

0

10

20

30

40

50

60

70

80

1416 1417 1418 1419 1420 1421 1422 1423 1424 1425 1426 1427 1428 1429 1430 1431 1432 1433

Approvals





Disbursement Trend for Cameroon

0

2

4

6

8

10

12

1416 1417 1418 1419 1420 1421 1422 1423 1424 1425 1426 1427 1428 1429 1430 1431 1432 1433

Disbursements





Portfolio Performance

The average age of the portfolio is almost 3 years:

7 projects have more than 6 years

5 projects have less than 2 years.

Newly approved projects (amounting to 180 US$ million) facing start-up challenges;

Old projects (amounting to US$ 80 million) facing implementation challenges.






0.00 0.50 1.00 1.50 2.00 2.50

Compliance Effectiv.conditions

Procurement of GS

Financial Performance

Activities and outputs

Project Management&supervision

1.75

2.13

2.40

2.15

1.75

Portfolio Performance-IP






0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

TRANSPORT EDUCATION HEALTH ENERGY AGRICULTURE

2.21

2.80

1.00

2.10 1.87

2.87 2.60

2.00

3.67

3.00

IP DO





Major Generic Issues

Delays in signing and fulfillment of conditions for effectiveness

Average for effectiveness 1.23 years after approval

Weak in project management and supervision

Procurement-related difficulties notably in civil works

Availability of counterpart financing

Poor Quality at entry in rural and social sectors projects

Need to build capacity at DCMI Level





IDB Work Program 2013

Amount in US$ million

No. Project Mode Amount Status

Category-A

1 Olama-Kribi Bridge & Ngoumou Road Istisnaa 50.00

2 Support to Health Sector Loan 10.00

3 Fibre Optic Backbone Project I/Sale 20.00

4 TA/CB to Directorate of Cooperation TA (Grant) 0.30

Sub-Total: 80.30

Category-B

5 Support to Education in Priority Areas Loan 10.00

6 Rural Electrification (Ph-II) Istisnaa 20.00

7 Limbe Shipyard (Ph-II) I/Sale 40.00

8 Feasibility Study for bovine value chain

TA (Grant) 0.4

Sub-Total: 70.00

Grand Total: 150.70





IDB Private Sector Forum Objectives

To begin to undertake private sector financing

To promote and help to introduce Islamic Banking and Finance

To investigate Infrastructure Financing through PPP

To increase Trade Financing Operations

To increase Insurance of Investments and Exports




THANK YOU

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