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Islamic Solidarity Fund for Development Islamic Development Bank Together we Build a Better Future.

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Presentation on theme: "Islamic Solidarity Fund for Development Islamic Development Bank Together we Build a Better Future."— Presentation transcript:

1 Islamic Solidarity Fund for Development Islamic Development Bank Together we Build a Better Future

2 About ISFD Established on 6 Dhul Qadah, 1426H / 08 Dec, 2005 Launched on 13 Jumad-I, 1428H / 30 May, 2007 Commenced Operations in February 2008 Special Waqf Fund with separate Accounts and Records, Board of Directors, and Board of Governors Target Capital: US$10 Billion Capital Committed: US$ 2.661 Billion Capital Paid: US$ 1.639 Billion IDB Commitment: US$ 1.0 Billion

3 Microfinance Initiatives Microfinance as Flagship Microfinance as Component Microfinance as a Multi-Donor Fund

4 Microfinance Support Programme (MFSP) (US$ 500 Million) Promote access of economically active poor to financial resources and the means to create employment opportunities and improve the living conditions of deprived communities Build capacity of Microfinance Institutions (MFIs) and banks to serve larger numbers of poor and marginalised people by delivering quality and demand-driven financial services Promote Shariah-compatible microfinance products and services ObjectivesMain Activities Extending lines of financing and equity capital to banks and Microfinance Institutions (MFIs) Building capacity of MFIs, banks, NGOs, and Community Based Financial Institutions Providing market-oriented training for microfinance borrowers

5 Microfinance Support Programme (MFSP) (US$ 500 Million) Provide Access to Financial Services Reduce Vulnerability Create Employment Opportunities Improve Living Conditions One Million Economically Active Poor Half Million Ultra Poor Women

6 Out of School Children (Age: 9-15) Teenagers and Youth (Age: 16-24) Women Worker Groups Vocational Literacy Programme (VOLIP) (US$ 500 Million) To reduce poverty, particularly among women in rural populations by equipping them with relevant functional literacy competencies and vocational skills. Vocational TrainingAccess to Microfinance

7 ISFD Sustainable Villages Programme (US$ 120 Million) Achievement of the MDGs by 2015 Tackling extreme poverty in selected regions with the help of low-cost, sustainable and community- led action plans Objectives Agriculture and Livestock Primary EducationPrimary Healthcare Business Development (Training + Microfinance) Empowering of Women Preservation of the Environment Rural Infrastructure Trade for Poverty Reduction Community Development WaterEnergyTransportIT

8 Islamic Microfinance Fund in Indonesia To provide Indonesia with a Microfinance Development Program (MDP) aimed at providing access to Shariah compliant microfinance for the poor, reduce poverty, and promote Islamic financial industry in the country. The estimated size of the fund would be IDR 500 trillion (Approximately US$ 55 million) to be called in two tranches of IDR 250 trillion each. > The size of the market is significant (revenue pool of ~IDR 74 trillion) > The segment is under-penetrated (only 25% are served today)

9 The measure of one’s life is not its duration BUT how much is one’s donation! Thank You! “…if anyone saved a life, it would be as if he saved the life of the whole people” Quran (5, 32).


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