Harvesting Opportunities for Poverty Eradication (HOPE) Finance Program

The HOPE Finance Program, a flagship initiative spearheaded by the Islamic Solidarity Fund for Development (ISFD), in collaboration with IsDB business units including, Global Practice and Partnerships Directorate, Country Programs Directorate, and the IsDB Institute, is dedicated to fostering sustainable agricultural development and alleviating poverty across member countries.

The Program focuses on actions and innovations to revitalize smallholder scale agriculture, stepping up support for climate-smart agriculture for food system resilience, digitization of agriculture with customized country interventions, and introduction of MSMEs innovative financing mechanisms to promote nature-based solutions, leading to better agri-food systems to promote long-term food security linked to poverty reduction in IsDB member countries.

The program, poised to benefit 10-15 IsDB least developed member countries, garnered substantial support from esteemed development partners such as the African Development Bank (AfDB), the International Finance Corporation-Overseas Private Investment Corporation (IFC-OCP), the United Nations Industrial Development Organization (UNIDO), UN Women, and the recipient countries themselves.

A Holistic Approach to Economic Inclusion

Recognizing that poverty eradication extends beyond mere financial access, HOPE embarks on a paradigm shift towards economic inclusion. This multifaceted approach encompasses:

Program Objectives:

HOPE targets 10 IsDB low-income and least developed member countries, aiming to:

• Create over 1 million jobs.
• Develop and deploy three innovative agricultural technology solutions.
• Facilitate access to clean and affordable energy for beneficiaries.
• Enhance agricultural productivity and reduce multidimensional poverty by 25% within beneficiary communities.

Key Expected Outcomes:

• Financial Inclusion: 500,000 beneficiaries (including smallholders, Income-Generating Activities, and micro-enterprises) with access to finance.
• Cooperative and SME Support: 11,700 cooperatives and agricultural SMEs receiving financial assistance.
• Capacity Building: 76,755 beneficiaries (including smallholders, MSMEs, financial institutions, and extension agents) receiving capacity building and technical assistance.
• Financial Institution Capacity Enhancement: 1,000 staff of partner financial institutions trained on IsDB Toolkits in Economic Empowerment, Islamic finance Product Development, and Monitoring and Evaluation.

Pilot Project: Tunisia Youth and Women MSMEs and Entrepreneurship Support Project

The ISFD Board of Directors approved the Youth and Women MSMEs and Entrepreneurship Support Project. This groundbreaking initiative marks the first pilot project under the flagship HOPE Finance “Harvesting opportunities for Poverty Eradication” Program, a collaborative effort between Islamic Development Bank, ISFD, Global Practice and Partnerships Directorate, Country Programs Directorate, and IsDB Institute.

Focused on empowering vulnerable populations, the project aims to uplift smallholder farmers, cooperatives, and Micro, Small, and Medium Enterprises (MSMEs) in Tunisia through a comprehensive approach. This multifaceted solution encompasses affordable blended finance, tailored technical assistance, and enhanced market access and capacity building. By prioritizing fourteen interior governorates in the country, the project targets key areas within Tunisia's food and agriculture sectors to bolster productivity and ensure long-term sustainability.

A key objective is to foster a resilient food ecosystem that not only addresses the immediate needs of Tunisian communities but also safeguards environmental and economic sustainability for generations to come.

The project's anticipated key outcomes include:

• Job Creation: Creation/preservation of 66,680 direct and 99,961 indirect jobs within the agri-food sector and related industries.
• Financial Inclusion: Provision of financial access to 31,500 micro-enterprises, 945 cooperatives, and business associations engaged in income-generating activities within the agri-food sector.
• Islamic Finance Integration: Adoption of two Islamic finance modalities/products.
• Capacity Building: Training of 308 staff from partner Microfinance Institutions (MFIs) and Financial Institutions (FIs) across 28 bank branches utilizing IsDB's Economic Empowerment Toolkits.
• Entrepreneurial Development: Training of 250 high-potential entrepreneurs in ethical leadership and social intelligence.
• Women's Empowerment: Financial and technical empowerment of 6 Women Agricultural Associations in rural areas to actively participate in the production and marketing of olive oil, honey, and their derivatives.
• Digitalization: 100% of projects are expected to implement Shariah-compliant core banking solutions.
• Value Chain Development: Development and implementation of 3 Economic Empowerment interventions/projects by the Tunisian Bank for Solidarity (BTS) focused on value chain products.
• Stakeholder Mapping: Comprehensive mapping of the MSME, Economic Empowerment, and Entrepreneurship ecosystem and its key stakeholders.

The total cost of the project is estimated at Euro 198.84 million, with contributions from various partners, including the IsDB, ISFD, African Development Bank, International Finance Corporation-OCP, Arab Bank for Economic Development in Africa (BADEA), the United Nations Industrial Development Organization (UNIDO), UN Women, and the Tunisian Government.