Overview
The Islamic Solidarity Fund for Development (ISFD) serves as the poverty alleviation arm of the Islamic Development Bank. To better deliver on its poverty reduction mandate, ISFD recognizes the role played by its donors and partners to increase its concessional loan and grant resources and impact on the ground, especially in the hard-to-reach communities.
ISFD is dedicated to supporting IsDB member countries in implementing poverty alleviation and well-being programs. These programs target various vulnerable groups, including the impoverished, youth, women, and marginalized populations. By addressing the unique needs of these segments of society, ISFD aims to uplift their lives and provide them with the support they require to overcome obstacles and achieve sustainable development.
Vision
Reduced poverty in member countries of the Organization of Islamic Cooperation (OIC).
Mission
To lead innovative poverty reduction programs focusing on the least developed OIC Member Countries by developing strong partnerships with IsDB, donors, and key stakeholders. These programs are to fight poverty through education, women and youth economic empowerment, community development, and health.
Focus Interventions
As the poverty alleviation arm of the IsDB Group, ISFD focuses on contributing to the enhancement of the least privileged communities in the least developed member countries.
The Fund’s Priority Areas include Human capital development (education, health, water, and sanitation) and Economic Empowerment (especially for MSMEs, Women, and Youth in strategic sectors such as Agricultural and Rural Development).
It contributes to the various programs and projects and targets the development of the member countries in the human capital development and economic empowerment areas.
Capital Resources
The ISFD has an approved capital of US$10 billion.
By the end of 2023, the capital commitments had reached a total of US$2.610 billion, which represented 26% of the target capital. The paid-up capital reached US$2.534 billion at the end of 2023, with member countries contributing US$1.534 billion and the IsDB US$1 billion.
Investment of Capital Resources
At year-end 2022, the total assets of the Fund increased by US$37 million to US$3,180 million compared to US$3,143 million at year-end 2021.
Treasury assets represented 67% of total assets.
The Fund’s resources at year-end 2022 stood at US$3,045 million, reflecting a net increase of US$46 million versus the year-end 2021 balance of US$2,999 million.
Income
The ISFD reported US$176 million net income for the year ended 31 December 2023, up by US$127 million from the US$49 million net income reported in the corresponding year ended 31 December 2022.
The development in global capital markets were favorable in 2023 as benchmark US$ yields increased significantly, while global stock markets experienced significant rebounds from the bear market environment of 2022. The Federal Fund effective rate increased from 4.1% in December 2022 to 5.33% in December 2023, while 5-year Treasury yields averaged 4.05% in 2023 against 3% in 2022.
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