IDB offers financing opportunity

The preparatory meeting for the annual meeting of the Islamic Development Bank (IDB) was held on May 8 and organized by the CTA.

António Laice, a representative of the Ministry of Economy and Finance, presented the philosophy of the IDB, explaining that Islam does not allow the lending of money with interest, which is considered usury. Thus, the IDB works with two types of loans:

– Concessional, for the public sector, with a 0.75 percent service charge.
– Ordinary for the private sector, with a 2 percent service charge.

Laice also stressed that the granting of loans by the IDB is not restricted to those who practice Islam.

The IDB has managed to develop a different model to the Western model based on funding through partnership. If the project is new, the investor will bring 50 percent of the capital while if already exists, only 45 percent of the value. The minimum value of a project is $5 million. There is also indirect funding through a credit line.

The annual meeting of the IDB is its General Assembly, and the bank’s member states are all shareholders. Mozambique is a member since 1994, is the only member from Southern Africa. A private sector forum organized by the CTA will take place in parallel to discuss the role of the private sector in the development of member countries, particularly in Africa, the exchange of experiences and knowledge among delegates on African private sector projects and a presentation of financial products and services from the IDB to support the private sector.

 

From June 7-11, 56 countries will be present in the country.