By integrating Islamic finance with proven entrepreneurship and business counseling interventions, IFETAA will empower MSMEs to become bankable, resilient, and key drivers of inclusive economic growth
VIENNA, Austria, June 17, 2025/APO Group/ --
Today, Africa Finance Corporation (AFC) (www.AfricaFC.org), UNIDO, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Union of Arab Banks (UAB), formalized new strategic partnerships under the Islamic and Arab Finance for Economic Transformation in Africa, the Arab Region and Beyond (IFETAA) Programme.

Africa Finance Corporation (AFC), UNIDO, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Union of Arab Banks (UAB), formalized new strategic partnerships under the Islamic and Arab Finance for Economic Transformation in Africa, the Arab Region and Beyond (IFETAA) Programme (1)

Africa Finance Corporation (AFC), UNIDO, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Union of Arab Banks (UAB), formalized new strategic partnerships under the Islamic and Arab Finance for Economic Transformation in Africa, the Arab Region and Beyond (IFETAA) Programme (2)
Access to finance remains one of the most significant barriers to SME growth and economic transformation, particularly in Africa, the Middle East and South Asia. Only one in five African firms has access to credit, and those that do often face prohibitively high interest rates averaging 25 percent, compared to just 5 percent in Europe. Islamic finance, with over US$4 trillion in assets, offers a largely untapped opportunity to address this gap by directing capital stored in monetary markets into the real economy.
IFETAA represents a new alliance that will drive capital and capacity towards MSME development, resilience and growth across low- and lower middle-income countries. The signing ceremonies of the 3 Memorandum of Understanding (MoU) took place ahead of a high-level roundtable at the Hofburg Palace in Vienna, held on the margins of the OPEC Fund Development Forum, and marked the formalization of the programme.
“As traditional development funding continues to decline, Islamic and Arab financial institutions are emerging as key partners in driving industrialization and sustainable development”, said UNIDO Director General Gerd Müller. “Through this programme, we are building a powerful new alliance to support small and medium-sized businesses, increase productivity and resilience, and accelerate economic transformation in developing countries”.
“The IFETAA Programme will unlock urgently needed capital for Africa’s economic transformation and AFC is proud to bring its unique expertise in both conventional and Islamic finance to mobilise funding at scale,” said Banji Fehintola, Board Member and Head of Financial Services at AFC. “As an issuer, guarantor, and investor, we are committed to delivering innovative, Shariah-compliant solutions that drive inclusive and resilient economic growth, whilst contributing to strengthening the south-south cooperation required to advance our shared development goals”.
H.E. Shaikh Ebrahim Bin Khalifa Al Khalifa, Chairman of AAOIFI and the International Center for Entrepreneurship and Innovation announced that “AAOIFI is proud to contribute to this transformative partnership, which aligns Islamic finance with global development priorities and encourages Islamic financial institutions to voluntarily dedicate at least 20% of their financing – over US$1 trillion – to MSME development. We will work on developing a Shariah-compliant finance programme enriched with technical assistance, regulatory support, and capacity building. IFETAA will also leverage UNIDO’s globally recognized Enterprise Development and Investment Promotion model (EDIP)”.
By integrating Islamic finance with proven entrepreneurship and business counseling interventions, IFETAA will empower MSMEs to become bankable, resilient, and key drivers of inclusive economic growth.
Dr. Wissam Fattouh, Secretary General of the Union of Arab Banks, stated: “IFETAA is more than a programme – it is a call to action. The Union of Arab Banks is proud to unite Islamic and Arab financial power to serve sustainable development and economic sovereignty. We are mobilizing capital not just to fund growth, but to shape the future of our region. This is about empowering MSMEs, restoring trust in financial systems, and building resilient, inclusive economies”.
IFETAA is a direct outcome of the commitments made at UNIDO’s A World Without Hunger conference in Addis Ababa in 2024. There, AAOIFI pledged to mobilize 20 percent of Islamic Financial Institutions’ loans and advancements towards MSME development, while UAB reaffirmed its commitment to channel US$1 trillion from its member banks towards the Sustainable Development Goals (SDGs). AFC, a close partner to UNIDO, expressed its support through its financial mechanisms and expertise. IFETAA will facilitate access to finance by developing a pipeline of bankable MSME projects, establish financial and non-financial de-risking mechanisms, and support host governments in strengthening regulatory frameworks to expand Islamic and conventional bank lending.
UNIDO has committed US$500,000 to support the preparation of the IFETAA programme and its initial implementation, which is co-led by the UNIDO Task Force on Islamic and Arab Financing and UNIDO’s Investment and Technology Promotion Office in Bahrain.
Each of the partner institutions brings unique strengths to the programme. AAOIFI, headquartered in Bahrain, is the world’s leading standard-setting body for Islamic finance and plays a critical role in ensuring Shariah compliance and supporting regulators and financial institutions globally. Beirut-based UAB represents over 300 Arab banks and financial institutions while serving as a regional platform for aligning Arab banking practices with global trends, including Islamic finance, ESG, and digital transformation. AFC is a pan-African multilateral financial institution specializing in infrastructure development. It has been expanding its use of Islamic finance instruments, recently closing a US$400 million Shariah-compliant Commodity Murabaha facility. AFC made history in 2017 by issuing a US$230 million Sukuk, the first-ever by an African supranational institution.
Distributed by APO Group on behalf of Africa Finance Corporation (AFC).
Another clanish article. No comment.
Blind trying to lead. Not worthy of comment.
Hey presto,
Then what is worthy of comment? Is polishing or prasing a public figure for nothing weorthy of comment? When we see a public figure who got around one project once he has been victorious in another, that is worthy of comment and credit,
Somnaliand must not be a country whose wealth politicians and public figure covet. It must be a country where diversity and democracy dwell, where the creative reesources inherent in our individuality yiedl a nation greater than the sum of what certain people covet. What all of us must unsderstand is that it is not the urge to surpass all others at whatever cost, but the urge to serve others at whatever cost. Common sense understands this. If we define ourselves by clans, ethenicity, etc, we build walls of suspicion and shun opening doors. As a result, we chip away at the shared values on which we stand tall.
Awdal is part and parcel of this country. Why he needs Awdal to be special case? He is one of those lost minds who roam around the west and does not know anything about his people and how they live in Somaliland. He is someone whom we should not give any chance to say more stupid things. Awdal will not fly to Mogadishu, but will stay foot in Somaliland.
Runsheeg,
Bitter response never breed better understanding. Pwersuaion is always the better option.
So let me guess, it's clannish because he talks of the government in a none flattering manner. Freedom of speech people, express yourself don't be puppets of others and their propaganda. I bet you every person who is offend by this article are members of the section of Isaaq that rules SL.
Why are you daroods obsessed with issaqs . You sound like jews obsessed with Germans .
I leave this forum for the less intelligent Somalilandpress readers to argue. I have no time for Faqa@sh excrements to crying wolf.
hhh @ daroods, those old women are crying all the time
As a citizen of any nation in the world, you can express your view in a democratically manner and I suspect this is what you are exactly doing. But do not try to stire and incite racial hatered among Somalilanders by using our name . Awdal is a an integral part of the formation of this society for decades and if we think that our rights have been violated by anyone, we know how to perdue this by using the right channels. Please do not patronise me and stop writing this garbage and keep it into your Marfash
deserves no comment, move on from such garbage as this article
Try not only to condem your free elected goverment BUT try how to improve or better find a solution for the major obsticales of your progress……….
I am not from Awdal or sahel But i always the wonderfull intelectuals from that part of my counrty.
If you disagree something wit your goverment than you should have have stand for your rights ( according to your democratic constitution) and show your goverment the right way…..
Somaliland means…..freedom of opinion… We are not in Siyad Bare era……………… Please take the lead and stand for Somaliland….
God save Somalilan
Ppl in Awdal are the most corrupt in SL. Every corner they have kids discussing how to each exams and pull other scams. No wonder why the grown ups are themselves creating crisis for everybody else.