MICROCAPITAL BRIEF: Islamic Development Bank’s ICD, Gabon’s CDC to Launch Fund Aimed at Growing SMEs in Central Africa

The Islamic Corporation for the Development of the Private Sector (ICD), a development finance institution of the Saudi Arabia-based Islamic Development Bank (IsDB), and the Caisse des Dépôts et Consignations Deposit (CDC), a financial institution backed by the government of Gabon, recently announced that they have signed a memorandum of understanding for the creation of a private equity fund to support small and medium-sized enterprises (SMEs) in Gabon and elsewhere in Central Africa. The goal of the fund is to foster the growth of SMEs that have been ill-served by banks and thus to grow the region’s economy as a whole.

As of October 13, 2015, ICD reported total assets of USD 1.7 billion and annual income of USD 97 million. CDC has a balance sheet of XAF 195 billion (approximately USD 315 million).

By Imke Herholdt, Research Associate

About the Islamic Corporation for the Development of the Private Sector (ICD)
The Islamic Corporation for the Development of the Private Sector (ICD) is a development finance institution of the Saudi Arabia-based Islamic Development Bank (IsDB). ICD was founded in November 1999 to support the economic development of its 52 member countries by providing finance for private-sector projects, promoting competition and entrepreneurship, providing advisory services to governments and private companies, and encouraging cross-border investments. The IsDB formally began operations on October 20, 1975. The IsDB aims to foster the economic development and social progress of its 56 member countries as well as Muslim communities in non-member countries, in accordance with the principles of Islamic Law (Sharia). As of October 13, 2015, ICD reported total assets of USD 1.7 billion, total annual income of USD 97 million, return on average assets of 1.27 percent and return on average equity of 2.07 percent. As of 2014, IsDB has total assets of IQD 14.8 billion (approximately USD 12.9 million).

About Caisse des Dépôts et Consignations Deposit (CDC)
CDC is a financial institution that was founded in 2012 and is backed by the government of Gabon. The aim of the organisation is to stimulate third-party investments, promote entrepreneurship, support small and medium-sized enterprises (SMEs) and create jobs by offering long-term finance to private companies. CDC has a balance sheet of XAF 195 billion (approximately USD 315 million).

Sources and Additional Resources
[1] ICD Africa: The Islamic Corporation for the Development of the Private Sector (ICD) and the Deposit and Consignments Fund (DCF) of Gabon sign a Memorandum of Understanding (MoU) to launch a private equity fund for SMEs in Gabon and Central Africa
[2] MicroCapital Universe Profile: The Islamic Corporation for the Development of the Private Sector (ICD)
[3] MicroCapital Universe Profile:Islamic Development Bank (IsDB)
[4] cdc

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