IsDB and AfDB Strengthen Africa Development Partnership

Chairman of the Islamic Development Bank (IsDB) Group Dr. Muhammad Al Jasser met with President of the African Development Bank (AfDB) Group Dr. Sidi Ould Tah at the IsDB Group headquarters in Jeddah on October 30, 2026, for high-level bilateral talks focused on co-financing and development implementation across the IsDB Group’s 27 African member countries. The official visit, confirmed by the Saudi Press Agency (SPA), underscored the two multilateral institutions’ shared commitment to accelerating sustainable development in Africa through expanded financial cooperation and strategic alignment.

The discussions reviewed progress under the 2024–2029 cooperation framework between the two banks, which provides for $4 billion in co-financing for sovereign and non-sovereign operations. According to official SPA information, approvals have already reached $2.65 billion, representing 66% of the target—a strong signal that the partnership is delivering on its promises. The meeting also addressed strengthening collaboration between the IsDB’s Concessional Fund (ICF) and the African Development Fund, including co-financing eligible operations and exchanging expertise in concessional financing. But what does this deepening alliance mean for Africa’s development trajectory, and why is it gaining momentum now?

Context and Background

How did the Islamic Development Bank and the African Development Bank come to forge such a consequential partnership? The IsDB, headquartered in Jeddah, Saudi Arabia, has long been a pillar of development finance for its 57 member countries, with a particular focus on Africa. The AfDB, based in Abidjan, Côte d’Ivoire, is the continent’s premier development finance institution. Their collaboration dates back years, but the 2024–2029 cooperation framework marked a significant escalation in ambition, setting a $4 billion co-financing target for sovereign and non-sovereign operations across the IsDB Group’s 27 African member countries.

This framework was designed to pool resources, reduce duplication, and maximize impact in sectors critical to Africa’s future—infrastructure, energy, agriculture, health, and private sector development. The fact that 66% of the target has already been approved less than three years into the framework speaks to the operational efficiency and mutual trust between the two institutions. It also reflects the pressing needs of African nations, many of which are grappling with debt sustainability challenges, climate vulnerabilities, and the urgent demands of a young, growing population. The meeting in Jeddah thus served as both a stocktake and a springboard for deeper collaboration.

Moreover, the involvement of the IsDB’s Concessional Fund and the African Development Fund adds a vital layer of support for low-income countries. By co-financing eligible operations and exchanging expertise in concessional financing, the two banks are ensuring that the most vulnerable nations are not left behind. This approach aligns with the broader global push for blended finance and innovative funding mechanisms to achieve the Sustainable Development Goals (SDGs). Saudi Arabia, through the IsDB, is playing a central role in this effort, reinforcing its position as a bridge between the Global South and the broader international community.

Key Details

What exactly was discussed during the Jeddah meeting? According to the SPA report, Dr. Al Jasser and Dr. Ould Tah reviewed the progress of the 2024–2029 cooperation framework in detail. The $2.65 billion in approvals covers a wide range of projects, from large-scale infrastructure to private sector initiatives that spur job creation and entrepreneurship. The two leaders also explored ways to strengthen the partnership between the IsDB’s Concessional Fund (ICF) and the African Development Fund, with a focus on co-financing operations that might otherwise struggle to attract funding.

The exchange of expertise in concessional financing was another key pillar of the talks. This involves sharing best practices on how to structure concessional loans, guarantees, and grants to maximize development impact while maintaining fiscal prudence. For African member countries, this means access to more tailored financial products that can address their specific challenges—whether it’s building climate-resilient infrastructure, expanding access to renewable energy, or strengthening health systems. The meeting also likely touched on the role of the private sector, as both banks have increasingly prioritized non-sovereign operations to unlock private capital and drive sustainable growth.

Dr. Al Jasser, a former Saudi Minister of Economy and Planning, has been a strong advocate for leveraging the IsDB’s resources to support Africa’s transformation. Dr. Ould Tah, a seasoned development economist from Mauritania, brings a deep understanding of the continent’s needs. Their personal rapport and shared vision have been instrumental in advancing the partnership. The Jeddah meeting was not just a diplomatic formality; it was a working session aimed at removing bottlenecks, accelerating disbursements, and ensuring that the $4 billion target is not only met but exceeded. With 66% already approved, the momentum is clearly on their side.

International and Regional Impact

How will this cooperation resonate beyond Africa’s borders? The IsDB–AfDB partnership is a model of South-South and triangular cooperation, demonstrating how institutions from the Global South can join forces to address common challenges. It also reinforces Saudi Arabia’s growing role as a global development hub. By hosting the IsDB headquarters and facilitating such high-level engagements, the Kingdom is positioning itself as a catalyst for international cooperation, in line with the principles of Vision 2030.

For Africa, the impact is tangible. The co-financed projects are expected to create jobs, improve infrastructure, and enhance energy access, all of which are critical for achieving the African Union’s Agenda 2063. The partnership also sends a positive signal to other development partners, including the private sector, that Africa is open for business and that credible institutions are working together to mitigate risks. In a world where geopolitical tensions often hinder multilateralism, the IsDB–AfDB alliance stands out as a beacon of constructive engagement. It also complements the efforts of other regional and international bodies, such as the World Bank and the European Union, by filling gaps and avoiding duplication.

Economic and Strategic Significance

Why does this meeting matter for the global economy? Africa is home to some of the world’s fastest-growing economies and a wealth of natural resources, yet it remains undercapitalized. The IsDB–AfDB co-financing framework helps bridge this gap by mobilizing long-term capital for projects that might otherwise be deemed too risky by commercial lenders. The $2.65 billion already approved is a fraction of what is needed, but it serves as a powerful catalyst, attracting additional funding from other sources.

For Saudi Arabia, the strategic significance is multifaceted. The Kingdom is a major shareholder in the IsDB and has consistently supported its mission to foster economic development and social progress in member countries. By strengthening the IsDB’s partnership with the AfDB, Saudi Arabia is not only contributing to Africa’s stability and prosperity but also building goodwill and opening doors for Saudi businesses and investors. This aligns with Vision 2030’s goal of diversifying the economy and expanding international partnerships. Furthermore, the focus on concessional financing and private sector engagement reflects a sophisticated understanding of development finance that is increasingly relevant in a post-pandemic world.

Vision 2030 Alignment

How does this development tie into Saudi Arabia’s long-term vision? Vision 2030, launched by Crown Prince Mohammed bin Salman, seeks to transform the Kingdom into a global investment powerhouse and a hub connecting three continents. The IsDB–AfDB meeting in Jeddah is a direct manifestation of that ambition. It showcases Saudi Arabia’s leadership in multilateral development and its commitment to fostering stability and prosperity in Africa, a continent with which the Kingdom shares deep historical, cultural, and economic ties.

By supporting the IsDB’s efforts to co-finance projects across 27 African member countries, Saudi Arabia is helping to create opportunities that will benefit both Africa and the wider world. The exchange of expertise in concessional financing and the emphasis on private sector solutions are also in line with Vision 2030’s focus on innovation and sustainability. As the partnership continues to deliver results—66% of the target already approved—it reinforces the Kingdom’s role as a responsible global citizen and a driving force for positive change. The Jeddah meeting was more than a bilateral talk; it was a reaffirmation of Saudi Arabia’s unwavering commitment to a shared future of prosperity.

20 Questions

Q1. What was the main purpose of the meeting between the IsDB Chairman and the AfDB President?

A1. The meeting aimed to discuss co-financing and development implementation across the IsDB Group’s 27 African member countries, reviewing progress under their 2024–2029 cooperation framework and exploring deeper collaboration.

Q2. Where did the meeting take place?

A2. The meeting was held at the Islamic Development Bank (IsDB) Group headquarters in Jeddah, Saudi Arabia, on October 30, 2026, according to the Saudi Press Agency.

Q3. Who represented the Islamic Development Bank at the meeting?

A3. The IsDB Group was represented by its Chairman, Dr. Muhammad Al Jasser, who led the discussions on behalf of the Jeddah-based institution.

Q4. Who represented the African Development Bank?

A4. The AfDB Group was represented by its President, Dr. Sidi Ould Tah, who attended with an accompanying delegation for the official visit and bilateral talks.

Q5. What is the value of the co-financing target under the 2024–2029 cooperation framework?

A5. The framework provides for $4 billion in co-financing for sovereign and non-sovereign operations across the IsDB Group’s 27 African member countries.

Q6. How much of the $4 billion target has been approved so far?

A6. Approvals have reached $2.65 billion, representing 66% of the target, indicating strong progress under the cooperation framework.

Q7. What is the IsDB’s Concessional Fund (ICF)?

A7. The ICF is a specialized fund within the IsDB Group that provides concessional financing to support eligible development operations in member countries, particularly low-income nations.

Q8. How does the ICF relate to the African Development Fund?

A8. The meeting addressed strengthening cooperation between the ICF and the African Development Fund, including co-financing eligible operations and exchanging expertise in concessional financing.

Q9. What are sovereign operations in the context of this cooperation?

A9. Sovereign operations are development projects or programs financed with a government guarantee, typically involving public infrastructure, health, education, and other state-led initiatives.

Q10. What are non-sovereign operations?

A10. Non-sovereign operations are financings that do not carry a government guarantee, often directed at private sector entities to spur entrepreneurship, job creation, and economic diversification.

Q11. How many African member countries does the IsDB Group serve?

A11. The IsDB Group has 27 African member countries, all of which are eligible for support under the co-financing framework with the AfDB.

Q12. What is the significance of the 66% approval rate?

A12. It demonstrates that the partnership is ahead of schedule and effectively delivering on its commitments, with less than three years elapsed in the five-year framework.

Q13. What sectors are likely to benefit from this co-financing?

A13. Key sectors include infrastructure, energy, agriculture, health, and private sector development—areas critical to Africa’s sustainable growth and job creation.

Q14. How does this partnership align with Saudi Arabia’s Vision 2030?

A14. It reinforces Saudi Arabia’s role as a global development hub and its commitment to international cooperation, economic diversification, and expanding partnerships across continents.

Q15. What is the role of the Saudi Press Agency in this context?

A15. The Saudi Press Agency (SPA) is the official state news agency that reported the meeting, providing verified information to the public and international media.

Q16. Why is Jeddah significant as the location for this meeting?

A16. Jeddah hosts the IsDB Group headquarters, making it a natural venue for high-level development finance discussions and a symbol of Saudi Arabia’s centrality in multilateral cooperation.

Q17. What does “concessional financing” mean?

A17. Concessional financing refers to loans or grants provided on terms more favorable than market rates, often with longer repayment periods and lower interest, to support development in poorer countries.

Q18. How does this cooperation benefit African economies?

A18. It provides access to affordable capital for critical projects, helps attract additional investment, and supports job creation, infrastructure improvement, and sustainable development across the continent.

Q19. What is the broader geopolitical significance of the IsDB–AfDB alliance?

A19. It exemplifies South-South cooperation and strengthens multilateralism, positioning Saudi Arabia and Africa as partners in addressing global challenges like poverty, climate change, and economic inequality.

Q20. What are the next steps following this meeting?

A20. The two institutions will continue implementing the 2024–2029 framework, aiming to reach the full $4 billion target while deepening collaboration on concessional financing and private sector engagement.

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