The African Development Bank Group (AfDB) and the Islamic Development Bank Group (IsDB) are strengthening cooperation on a $4 billion joint financing plan for development projects across 27 African member countries.

AfDB said in a statement on Monday that this follows a meeting between its president, Sidi Ould Tah, and IsDB president, Muhammad Al Jasser, at the IsDB headquarters in Jeddah.

“The two leaders reviewed the 2024–2029 Cooperation Framework, which targets 4 billion dollars in co-financing for sovereign and non-sovereign operations.

“Approved operations under the framework total $2.65 billion, representing 66 per cent of the target. The meeting builds on the Joint Declaration signed in January 2026 between the AfDB Group and the Arab Coordination Group, of which the IsDB is a member,” the statement said.

According to the IsDB president, the partnership is strategic to advancing Africa’s development priorities.

“The African Development Bank is a strategic partner of the IsDB Group in advancing Africa’s development priorities,” he said.

Mr Al Jasser said both institutions would work to increase co-financing, strengthen project preparation and implementation, and mobilise public and private capital.

According to him, the partnership aims to achieve tangible, sustainable development impact across its member countries.

The AfDB president expressed satisfaction with the progress under the cooperation framework.

Mr Tah said a memorandum of understanding had been signed, while 66 per cent of the financing target had been reached in less than two years.

He said the progress demonstrated the potential for both institutions to pursue more ambitious co-financing targets.

Mr Tah also called for stronger coordination on the ground and mobilisation of other partners, particularly the Arab Coordination Group.

The AfDB president also presented the New African Financial Architecture for Development (NAFAD), which the Bank Group’s Board approved at its Annual Meetings in Brazzaville in May.

He said African Heads of State also adopted the framework in February in Addis Ababa, and leaders of the African financial ecosystem adopted it through the Abidjan Consensus in April 2026.

“The 11-point consensus seeks to mobilise domestic savings to address Africa’s estimated annual financing gap of $400 billion.

“Africa’s challenge is not a lack of resources but inadequate instruments and coordination. Africa does not lack resources; it lacks instruments and coordination,” he said.

He commended the Arab Coordination Group for supporting projects addressing basic needs, including water, health, education, sanitation, agriculture and infrastructure.

He also proposed regular meetings to review progress and strengthen mutual trust among development partners.

Mr Tah urged the institutions to avoid duplicating evaluation, procurement and due diligence processes, stressing the need for complementary efforts.

(NAN)