Home » AFESD joins IFC’s Master Cooperation Agreement (MCA)

AFESD joins IFC’s Master Cooperation Agreement (MCA)

by Madaline Dunn

The Arab Fund for Economic and Social Development (AFESD) has announced that it has joined the International Finance Corporation’s (IFC) Master Cooperation Agreement (MCA), becoming the third signatory from the Arab region. 

AFESD, based in Kuwait, is an Arab regional financial institution focused on funding economic and social development by financing key public and private investment projects and providing essential grants and expertise. 

The agreement commits AFESD to work alongside the IFC and other development institutions to identify and support viable firms in Arab League countries through impact loans. It was shared that these loans are “instrumental” in reducing poverty and fostering economic growth.

AFESD will mobilise $500 million to support projects to catalyse private sector growth and job creation across the fund’s member states.

The MCA, launched in 2010, is a co-financing cooperation approach that brings together over 35 multilateral and bilateral development banks, which is designed to streamline and standardise loan documentation processes, enhancing operational efficiency for both borrowers and lenders. 

To date, it has successfully syndicated over $12 billion to more than 30 firms in developing countries.

“We welcome AFESD into the fold of our MCA signatories Their participation is a testament to our shared vision of leveraging finance for impactful projects that can make a real difference for people in emerging markets,” commented Hela Cheikhrouhou, IFC’s Regional Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan. 

Bader Alsaad, Director General/Chairman of the Board of Directors, Arab Fund for Economic and Social said: “We are pleased to join the IFC’s Master Cooperation Agreement and actively contribute to shaping the future of development financing across Arab nations.”

Adding: “Through transparent and effective partnerships like this, we not only leverage our collective strengths but also enable transformative projects that are economically viable and socially imperative. Embodying our commitment to fostering sustainable development, we look forward to advancing projects that make a profound impact, foster sustainable development and reinforce our commitment to regional integration.”

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