Cooperation with National Development Finance Institutions (NDFIs)


Pro-growth policies for the small and medium scale enterprises (SMEs) sector are important for developing entrepreneurship and ensuring that the benefits of economic growth have an impact on employment generation and poverty alleviation. Therefore, since its inception the IDB has forged strategic partnerships with national development financial institutions (NDFIs) in member countries to support the growth of the SME sector. The IDB Lines of Financing enable SMEs to access financing through Leasing, Installment Sale, and Istisna’a modes for scaling up their technological capabilities. IDB also extends global Line of Financing to several NDFIs in member countries to spur competition and efficiency in the SME sector. Currently, there are 31 Lines of Financing in 15 member countries amounting to ID 244.64 Million ($ 318.94 million).

 

The Bank also extends technical assistance for capacity building of NDFIs through enhancing the skills of their staff in order to manage a sound SME portfolio. Furthermore, the Bank seeks to promote the effectiveness of NDFIs through exchange of best practices in SME financing in the member countries. In this regard, the Association of National Development Financing Institutions in IDB member countries (ADFIMI) was established in 1406H (1986) with its headquarters in Istanbul, Turkey. ADFIMI provides a forum for exchange of new ideas and experiences to enhance the contribution of SMEs to economic growth, income generation and human resources development. In 1426H, the activities of ADFIMI were reviewed and new thrust areas have been identified for more effective activities in the coming years.