The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), and the African Union Commission (AUC) has signed a memorandum of understanding (MoU) to develop a platform through which to enhance ties between the Islamic world and the African continent.

The agreement will facilitate the launch of a framework to encourage cooperation between the ICD and AUC to promote economic, financial and social development of member states and also to develop an advisory process to identify challenges and address impediments to this mutual collaboration. In addition, it will support the private sector development across the respective regions. The parties will work toward the generation of a consolidated plan of action designed to mobilize private sector partners and resources for the implementation of joint priority programs like co-financing AUC private sector projects and providing advisory services to African governments..

“The MoU will enhance and strengthen the coordination of complementary activities, interests and capacities between the ICD and AUC toward promoting private sector development, investment, and resource mobilization in Africa through unlocking business potential, including mobilizing FDI in various economic sectors within the key priority sector programs and projects identified by the ICD and AUC,” explained Khaled Al-Aboodi, CEO of ICD.

“The cooperation between ICD and AUC will constitute a platform to strengthen ties between the respective regions and facilitate a consultative/advisory process to address issues that stand in the way of promoting investment and trade flows between ICD and AUC member states.

The purpose of this MoU also is to provide a general framework to facilitate their cooperation by enhancing economic, financial and social development and set out a common approach to support private sector development in their respective institutions,” stated Erastus Mwencha, deputy chairperson of the AUC.