The BCEAO and ICD sign a Memorandum of Understanding on cooperation in favour of SME / SMI in member countries of the WAEMU

JEDDAH, Kingdom of Saudi Arabia, January 25, 2016/ -- Mr. Tiémoko Meyliet KONE, Governor of the Central Bank of West African States (BCEAO) and Mr. Khaled Al-Aboodi, CEO & General Manager of the Islamic Corporation for the Development Private Sector (ICD) (www.ICD-idb.com), signed a Memorandum of Understanding on Cooperation.

This MoU provides a framework for partnership and establishes the guidelines and the terms of cooperation between the ICD and the BCEAO to support financing for SMEs / SMIs in the West African Economic and Monetary Union (WAEMU).

Considering that the promotion of SMEs / SMIs is an important lever for the fight against poverty and for the emergence of the economies of Member Countries of the UEMOA, the Council of Ministers of the Union adopted, at its meeting of September 29, 2015, the "mechanism to support financing for SMEs / SMIs in the WAEMU" whose implementation monitoring was entrusted to the BCEAO.

By virtue of this MoU, ICD provides support for the operationalization of the support mechanism to finance for SMEs / SMIs in the WAEMU by a direct participation up to USD 30 million to the the establishment of a Sharia compliant investment fund for SMEs/ SMIs.

In addition, in coordination with BCEAO, ICD at best effort basis, will attract other investors in order to increase the size of the fund up to USD 100 million.

On its part, the BCEAO is responsible for the implementation of the support system to finance SMEs / SMIs in the WAEMU. It supports the following:

• providing incentives for credit institutions to finance SME / SMI;

• conducting studies on support and coaching structures in favor of SMEs / SMIs and on the impact of the support scheme to finance SMEs / SMIs in the WAEMU;

• promoting complementary instruments tailored to the financing of SMEs / SMIs (credit bureau, leasing, venture capital, etc.).

Both institutions acknowledged the importance of SME/SMI in the economic growth in general and the private sector development in particular in the member countries of the WAEMU. They emphasized their common will to work towards strengthening their cooperation, including the financing of the economies of the Union.

On this occasion, Mr. Khaled Al Aboodi, CEO & General Manager of the ICD, that the MoU will strengthen ICD's support towards the regional economies of WAEMU while providing knowledge and mobilizing resources to support SMEs / SMIs.

On his part, Mr. Tiémoko Meyliet KONE, the Governor of BCEAO, welcomed this new partnership, which should contribute to the promotion of SMEs / SMIs in the member countries of WAEMU. This promotion is important for economic transformation of the zone. It is expected that the partnership will foster economic growth and create jobs manly for young people. 

Distributed by APO (African Press Organization) on behalf of Islamic Corporation for the Development of the Private Sector (ICD).

About the West African Economic and Monetary Union (WAEMU) 
Members of the West African Economic and Monetary Union are Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. UEMOA member countries are working toward greater regional integration with unified external tariffs. 

UEMOA has established a common accounting system, periodic reviews of member countries' macroeconomic policies based on convergence criteria, a regional stock exchange, and the legal and regulatory framework for a regional banking system. 

Besides its basic tasks, including the definition and implementation of monetary policy and maintaining the stability of the banking and financial system, the BCEAO supports the economic policies of WAEMU, for healthy and durable growth. 

About the Islamic Corporation for the Development of the Private Sector (ICD) 
The Islamic Corporation for the Development of the Private Sector (ICD) (http://www.ICD-idb.com) is a multilateral organization, part of the Islamic Development Bank (IDB) Group. ICD was established in November 1999 to promote economic development of its member countries in accordance with the principles of the Sharia through private sector development. ICD encourages the establishment, expansion and modernization of private enterprises through financing private sector enterprises or projects. Projects are selected on the basis of their contribution to economic development considering factors such as creation of employment opportunities and contribution to exports. ICD also provides advice to governments and private sector groups on policies to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhance the role of market economy. ICD operations complement the activities of the IDB. 

SOURCE
Islamic Corporation for the Development of the Private Sector (ICD)

© Press Release 2016