The Islamic Development Bank (IDB) Thursday announced details of the $10 billion Waqf fund recently created to fight poverty in OIC member countries. Termed the Islamic Solidarity Fund for Development (ISFD), it has Vocational Literacy Program for Poverty Alleviation (VOLIP) and the Microfinance Support Program (MFSP). The ISFD intends to launch the two programs immediately after the OIC Summit now in progress in Dakar. These two funds will provide some $1 billion in financing over the next five years in order to help address some of the most fundamental causes of poverty in member nations of the IDB, namely lack of education and of employment opportunities, an IDB press release said. The ISFD, whose objectives are linked directly to supporting the achievement of the United Nations' Millennium Development Goals, is focused on poverty alleviation and development in the poorest IDB member states, 80 percent of which are located in sub-Saharan Africa, as well as to combat pockets of poverty in other member countries. The VOLIP program will aim to provide some $500 million in funds over a five-year period for vocational literacy. The program also includes a micro-financing facility to help its graduates initiate their own micro businesses. Closely tied to the VOLIP program is the MFSP, which will extend $500 million in micro-financing to poor communities in member nations over the next five years in order to help create employment opportunities and improve living conditions. Families participating in the VOLIP program will be given priority access to microfinance under the MFSP. The program will also complement other microfinance programs already being undertaken by the Bank. The ISFD will contribute $100 million in funds to each initiative over the duration of the programs and will raise the additional funds from other international development financing institutions, NGOs and public and private sector sources in member countries. Commenting on the announcement, President of the Islamic Development Bank Dr. Ahmad Mohamed Ali said: “We are delighted to have received Board approval for the First Five-Year Strategy (2008-2012) of the Islamic Solidarity Fund for Development estimated to cost $13.50 billion and for the implementation of the first two programs under this strategy.” “These programs will be launched with the financial resources already raised by the Fund as well as those provided by the IDB itself. At the same time, we continue our mobilization drive, calling on member states of the Bank and private sector sources to donate generously to the ISFD,” he said. __
