The Islamic Development Bank Group Together We Build A Better Future
The IDB Group and Cameroon
Sequence
i. ii. iii. iv. v. vi. vii. viii. ix. x.
Overview of the IDB Group Cameroon and IDB Group Membership IDB Projects by Mode of Finance IDB Projects by Sector Projects Status in Cameroon Examples of past IDB projects in Cameroon Approvals Trend for Cameroon Disbursement Trend for Cameroon Portfolio Performance in Cameroon Future Areas of Co-operation with Cameroon
IDB Group at a Glance 37 Years in the Service of Development 1396-1433H /1975-2012G 2012
1999
IDB Group
1981
Key Features
1975
1994
2008
MDB of the Islamic World South-South Development
Financing Institution Solidarity-based Shariah-compliance Pioneer in Trade Finance AAA-rated OVERVIEW OF THE IDB GROUP
Our Member Countries Europe: 2
Africa: 27
Asia: 26 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 OVERVIEW OF THE IDB GROUP
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 Inception
37 Years After
1396H / 1975G › 22 Member Countries › Authorized › : ID 2.0 billion › : US$ 3.2 billion › Subscribed › : ID 750 million › : US$ 1,200 million
1433H / 2012G › 56 Member Countries › Authorized: ID 30.0 billion › : US$ 46.5 billion › Subscribed: ID 18.0 billion › : US$ 27.9 billion
Currency Equivalent: ID 1.0 = US$ 1.55 OVERVIEW OF THE IDB GROUP
IDB’s Major Shareholders Of IDB’s 56 member countries, 9 Members Countries make up about 83% of the total shareholding of IDB Others, 15.96%
Saudi Arabia, 23.61%
Kuwait, 5.48% UAE, 5.81%
Turkey, 6.48%
Egypt, 7.10% Qatar, 7.21%
Iran, 8.28% Nigeria, 7.69% Libya, 9.47%
Source: Treasury Department, February 2011
OVERVIEW OF THE IDB GROUP
IDB’s Rating Affirmations
“AAA” & ‘A-1+’ Short-Term
“Aaa” & ‘P-1’ Short-Term
“Stable” Outlook
“Stable” Outlook
“AAA” & ‘F1+’ Short-Term “Stable” Outlook
EU Zero Risk Weight
OVERVIEW OF THE IDB GROUP
IDB Organizational Chart BOARD OF GOVERNORS BOARD OF EXECUTIVE DIRECTORS
IRTI
ICIEC
1981
1994
ICD 1999
IDB Group President ITFC 2008
OVERVIEW OF THE IDB GROUP
Members / Entities of the Group Islamic Research & Training Institute (IRTI) Serve as research and training arm of the IDB, Lead development of the Islamic Financial Services Industry (IFSI) to support socioeconomic development of MCs. Activities: training, research, advisory, capacity building, etc.
Islamic Corporation for the Devt. of the Private Sector (ICD) 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.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
Boost trade among OIC Member Countries, Offer Shariah-compliant export credit insurance and re-insurance Provide political risk insurance to encourage investment flows.
International Islamic Trade Finance Corporation (ITFC) 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 OVERVIEW OF THE IDB GROUP
Group Geographic / Field Presence 5 COUNTRY GATEWAY OFFICES To be established in 1433/34H Dubai Office
+
4 REGIONAL OFFICES Nigeria
14 Field Representatives
Bangladesh
Kazakhstan
Senegal
+
HEADQUARTERS Jeddah Egypt
Indonesia
Malaysia
Turkey
Morocco
Afghanistan Azerbaijan Bangladesh Burkina Faso Guinea Indonesia Iran Mali Nigeria Pakistan Sudan Turkmenistan Uzbekistan Yemen
OVERVIEW OF THE IDB GROUP
Accomplishments From Bank Inception to end of Q3, 1433H Group Cumulative Approvals: US$ 85.0 billion US$ 40.8 billion (48.0%) US$ 43.5 billion (51.2%) US$ 0.7 billion ( 0.8%)
> Project Financing > Trade Financing > Special Assistance
Yearly Approvals since Bank Inception ( in US$ Million [Nominal] )
8,502
US$ Million
8,000.00 6,000.00 4,000.00 2,000.00 -
Year OVERVIEW OF THE IDB GROUP
Cumulative Approvals by Sector (OCR) Urban Services, 12.2%
Agriculture, 10.9% Education, 8.6%
Transport, 24.9%
Energy, 22.8%
Other, 1.6% Industries & Mining, 9.6%
Finance, 4.4% Health, 5.0% OVERVIEW OF THE IDB GROUP
“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” OVERVIEW OF THE IDB GROUP
Comprehensive Development Agenda Nine Key Strategic Thrusts: 1. 2. Mission Statement 3. 4. Promote comprehensive human development, with a focus on the priority 5. 6. areas of alleviating poverty, improving health, promoting education, improving 7. governance and prospering the people”
Reform IDB Alleviate Poverty Promote Health Universalize Education Empower Women Prosper the People Expand the Islamic financial Industry 8. Facilitate Integration of IDB Countries 9. Improve the image of the Muslim World OVERVIEW OF THE IDB GROUP
Reforms at IDB Responsive to Clients
Leveraging Partnerships
Focused
A New IDB Group
Results Oriented
Scaled up
KnowledgeOriented
OVERVIEW OF THE IDB GROUP
MCPS Framework Consultation
Consultations Government Development Partners Civil Society Private Sector Academia Research Institute
Seeks Common Grounds Country National Development Strategy MCPS and Results Framework
IDB Vision 1440H and Results Framework
Diagnosis
Knowledge Repository inputs Diagnostic and Analytical Papers Sector and Thematic Assessments Sector Road Maps Self and Independent Assessments
Completed MCPSs: Turkey, Indonesia, Uganda, Mauritania, Mali, Pakistan, Senegal, Malaysia, Bangladesh, Kuwait, Morocco and Kazakhstan
Uniqueness of the MCPS – Reverse Linkages Reverse Linkages (RLs) are specific activities for mainstreaming “South-South” Development Approach Asia and Surinam
Arab Asia
IDB MCs specific expertise, knowledge, knowhow, investments, success stories, best practices, etc.
CIS and Europe
West Africa
Arab Africa East, South & Central Africa
OVERVIEW OF THE IDB GROUP
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
OVERVIEW OF THE IDB GROUP
Group Products and Services Project Financing
Public (Sovereign) Private (Non-Sovereign) and Public-Private Partnerships (PPPs)
Trade Financing & Promotion of Intra-Trade between Member Countries
Insurance of Investment & Export Credit
Capacity Development & Technical Cooperation
Fund / Asset Management
Islamic Economics & Finance Research and Training
Development of the Islamic Financial Services Industry
Special Products Science & Technology Program Scholarship Programs Special Assistance OVERVIEW OF THE IDB GROUP
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 OVERVIEW OF THE IDB GROUP
Special Funds, Programs & Initiatives Islamic Solidarity Fund for Development (ISFD) Special Program for the Development of Africa (SPDA)
• • •
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
•
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
• •
•
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
OVERVIEW OF THE IDB GROUP
Major Development Partners Coordination Group
Arab Gulf Program for Development
MDBs / Bilaterals / International Organizations
OVERVIEW OF THE IDB GROUP
IDB Interventions in Cameroon Cameroon became a Member of… IDB in 1977
ICIEC 1992
ICD in 2001
ITFC in 2007
OVERVIEW OF THE IDB GROUP
Projects by Mode of Financing Mode of Finance
No. of Ops
Amount US$
196
200 180
Equity
2
10
Instalment Sale
4
28
Istisna'a
4
160 140 115
120
115
100
80
Loan T.A. Grant
28
196
11
2
60 40
28 10
20 2
Total
49
350
4
28
11
4
2
0 Equity
I/Sale
Istisnaa
Loan
TA Grant
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 24
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
Amount US$ Million
112
122
Energy Social Services NDFIs & Microfinance Industry Water / Sanitation
17
49
350
Transp & Comm
24 63 10
Total
Agriculture
1
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 25
Project Status Project Status
No. of Ops
US$
Under Implementation
22
260
Completed
27
90
Total
49
350
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 26
Examples of IDB Projects in Cameroon SanglemimaDjoum Road
The Limbe Shipyard
Approved: 10 September 2001 IDB Financing : US $ 14 mil Mode of Finance: Istisnaa
Approved: 18 August 2009 IDB Financing : US $ 64 mil Mode of Finance: Istisnaa Rural Electrification
Song-Loulou Hydro Electric Power
Approved: 18 October 1976 IDB Financing : US $ 7 mil Mode of Finance: Loan
Approved: 11 September 2005 IDB Financing : US $9.5 mil Mode of Finance: Loan OVERVIEW OF THE IDB GROUP
The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 27
Approvals Trend for Cameroon Approvals 80
70
60
50
40
30
20
10
0 1416
1417
1418
1419
1420
1421
1422
1423
1424
1425
1426
1427
1428
1429
1430
1431
1432
1433
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 28
Disbursement Trend for Cameroon Disbursements 12
10
8
6
4
2
0 1416
1417
1418
1419
1420
1421
1422
1423
1424
1425
1426
1427
1428
1429
1430
1431
1432
1433
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 29
Portfolio Performance The average age of the portfolio is almost 3 years: 7 projects have more than 6 years 5 projects have less than 2 years. Newly approved projects (amounting to 180 US$ million) facing start-up challenges; Old projects (amounting to US$ 80 million) facing implementation challenges.
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 30
Portfolio Performance 1.75
Project Management&supervision
2.15
Activities and outputs
2.40
Financial Performance
2.13
Procurement of GS
1.75
Compliance Effectiv.conditions 0.00
0.50
1.00
1.50
2.00
2.50
Portfolio Performance-IP
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 31
Portfolio Performance 3.67
4.00 3.50 3.00 2.50
2.87
3.00
2.80
2.60
2.21
2.00
2.10
1.87
2.00 1.50
1.00
1.00 0.50 0.00
TRANSPORT
EDUCATION
HEALTH
ENERGY
AGRICULTURE
IP
DO
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 32
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
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 33
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
6
Rural Electrification (Ph-II)
7
Limbe Shipyard (Ph-II)
8
Feasibility Study for bovine value chain
Loan
10.00
Istisnaa
20.00
I/Sale
40.00
TA (Grant)
0.4
Sub-Total:
70.00
Grand Total:
150.70
OVERVIEW OF THE IDB GROUP The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 34
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
OVERVIEW OF THE IDB GROUP
The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 35
THANK YOU
The Islamic Development Bank Group http://www.isdb.org
معا ً نبني مستقبال ً أفضل TOGETHER WE BUILD A BETTER FUTURE ENSEMBLE NOUS CONSTRUISONS UN AVENIR MEILLEUR
Slide 36