The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of IDB Group, and BSIC Niger have entered into an agreement to finance SMEs in Niger.

Khalid Al-Aboodi, CEO of ICD, said: “ICD has been engaging with local banks in Niger to strengthen SMEs. This agreement will enable us to establish an all-encompassing financial network to support local SMEs willing to develop their business in the country. In addition, BSIC is an institution ICD is familiar with, having extended a line of finance to other subsidiaries of the Group."



The line of financing agreement was signed for the amount of €9m under the Wakala structure or agency contract.



The collaboration will focus on developing private sector especially SMEs, supporting economy, strengthening the balance sheet of the Bank, improving the living standard of the population by creating jobs, generating tax revenues for the government and promoting Islamic Banking in the country.



Abakar Adoum, Managing Director of BSIC, said: “The signing of the agreement between our bank and the ICD, marks the beginning of a partnership that we hope will be lasting and fruitful for both institutions. Through our status as WAKEL, BSIC Niger clients (SME) will enjoy a mentoring that meets their needs at relatively acceptable costs.” 

“The line of financing will enable us to finance both the investment and operating needs of our SME clients; especially that it is a 5-year line. As a result, the impact on the activity of these SMEs is incommensurate in view of the difficulties they face in raising resources to support their growth.” 

“We are very pleased to see our approach to the ICD lead to the signing of this agreement and we dare to believe that other forms of partnership, including the opening of an Islamic window, will develop in the near future,” he added.