Nigeria, Others to Benefit from IsDB $730m COVID-19 Facility

By Adedapo Adesanya

The Islamic Development Bank (IsDB) Group has set-up a special facility worth $730 million to cushion the health and socio-economic impact of the COVID -19 pandemic in its 57 member states, including Nigeria, which joined in June 2005.

Tagged ‘Strategic Preparedness and Response Facility’, the bank will extend financing to both the public and private sectors in minimizing the spread and impact of the pandemic in these countries and help to build their resilience.

In a statement by the group, it said financing will be extended in the form of grants, concessional resources, trade finance, private sector lending and political and risk insurance coverage.

“The IsDB Group will deploy all the available financing instruments to channel the funds in a fast track manner to support its member countries.

“The IsDB Group entities will support the private sector in responding to the crisis and to minimize its impact on SMEs to sustain economic development,” it said.

The statement further said the Islamic Corporation for the Development of the Private Sector (ICD) will provide $250 million of emergency funding mainly in the form of medium to long-term financing instruments to help existing and new clients in the financial, agri-food, energy and other affected sectors.

“ICD will also be aiding the private healthcare industry of affected member countries to meet surging need for services, equipment and medicines.

“Further, ICD will work closely with 100+ local and regional financial institutions in its network to provide necessary support so they can continue to finance SMEs in affected sectors within the markets they operate,” the statement noted.

IsDB, also revealed that it was planning to invest in research and development and provide technical assistance support for developing innovative solutions for preventing and containing the pandemic under its Science, Technology and Innovation Program.

The group’s entities will support the private sector in responding to the crisis and minimizing its impact on SMEs to sustain economic development.

The rapid response package will be to the tune of $300 million, enabling the revival of trade and sustenance of supply chains in strategically important sectors.