Private Sector Forum analyses financing opportunities offered by the IDB

Jointly organized by the Islamic Corporation for Development of Private Sector (ICD) and the Commission of the African Union (AUC), the Private Sector Forum — held as part of the annual meeting of the Islamic Development Bank (IDB) — was held between June 8-11 in Maputo. 
In his introduction, CTA President Rogério Manuel said that Mozambique joined the IDB in 1995 and from this date has received $300 million in investment with a multiplier effect. He added that country with a growth rate of 7.5 percent in 2015, the country is going through an interesting period. 
For Anthony Maruping, the commissioner for economic affairs of the AUC, the African private sector is the continent’s engine of economic and social development and generates 70 percent of revenues, 70 percent of investment and 90 percent of employment. Represented mainly by micro, small and medium enterprises (MSMEs) and informal enterprises, the private sector is facing big problems when it comes to the interest rates charged by commercial banks. 
For, Khaled al-Aboodi, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD), Mozambique is a bridge between conventional financing and BID financing, considering that the ICD makes partnerships with other banks in order to support MSME development. 
Mozambican Industry and Trade Deputy Minister Omar Mithá said that with regards to investment, one of the advantages of the IDB is the “fact that the institution can channel funding to small and medium enterprises.” However, he acknowledged that the country still has “enormous challenges at the regulatory level, even though the government is working to overcome the remaining obstacles. For example, we will operationalize this year the Competition Regulatory Authority, an entity that will contribute to the creation of a healthy competitive environment and improve the degree of attractiveness.” 
Several topics were discussed at the forum such as: (i) Development of the private sector in Africa; (ii) presentations on IDB group entities, products and services; (iii) presentation on investment opportunities in Mozambique; (iv) creating more and better jobs in Mozambique; (v) update on the IDB group business plan competition for the sub-Saharan Africa region. Farid Masmoudi, commercial director of partnership at the ICD, recalled its four pillars: (i) Raise awareness of Islamic finance, (ii) How to assist public and private institutions to transform in order to receive Islamic funds, (iii) How to channel funds through institutions, (iv) Provide direct capital to projects. 
Key elements: 
The ICD, an affiliate of the IDB, is an international multilateral financial institution created for the development of its member countries through the provision of investment financing and financial services to the private sector.
The major investment products of the ICD are:
Equity: participating in investment through modes such as share capital and profit sharing with declining participation.
Term financing such as leasing and instalment sales.
Quasi-equity in the form of term financing convertible into equity at some stage of the project life.
Eligibility criteria:
– Countries: all member countries of the ICD.
– Sectors: all sectors, with the exception of recreation and defence. 
– Clients: clients must operate within the territory of an ICD member.
Further information on: www.icd-idb.org