The Islamic Development Bank Group Together We Build A Better Future. The IDB Group and Cameroon

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...
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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