Jeddah, The Organization of Islamic Cooperation (OIC), jointly with the Islamic Development Bank (IsDB) and Akhuwat Foundation, organized a Seminar on the Akhuwat Business Model for Microfinance Intervention and Economic Empowerment in the OIC Member States, at the OIC General Secretariat in Jeddah today.
During the joint Opening Session, Dr Ahmad Kawesa Sengendo, OIC Assistant Secretary-General for Economic Affairs, delivered his speech to the audience. Dr Sengendo pointed out that the seminar intended to allow the participants to share their experiences and views on the current sector challenges and opportunities, as well as expectations and predictions about future microfinance and economic empowerment trends. He said that poverty remains one of the biggest challenges to the socio-economic development of the majority of OIC Member States, especially in Sub-Saharan Africa and South Asia. He added that unemployment, especially among youths, is as high as 38% in some OIC Member States where millions live in abject poverty lacking basic human needs.
Dr Sengendo stressed that overcoming poverty, for many poor people in OIC countries, mainly depends on self-employment through microenterprises. He explained that the OIC and its relevant institutions had initiated several microfinance and economic empowerment development programmes.
Amir Bukvic the IsDB Ag. Director General of Global Practices and Partnerships, during his opening remark, mentioned that the traditional approach is exposed to over-indebtedness, especially in these times of multiple crises, unless appropriate non-financial services are also provided. It is necessary to have financial services accompanied by profitable project opportunities, affordable supporting infrastructure, proper capacity building, access to relevant and attractive markets, and appropriate technological solutions. Therefore, the IsDB Economic Empowerment Approach is very timely for adoption and further acceleration to the mainstream business of microfinance of the OIC Member States.
Dr Sengendo noted that microfinance institutions (MFIs) have emerged in several OIC Member States to meet the demand of disadvantaged people for financial services. He cited the example of Akhuwat Islamic Microfinance (AIM), which has been operating in Pakistan since 2001 to provide interest-free microfinance to marginalized members of the society to enhance their living standards and enable them to improve their livelihoods.
The Assistant Secretary-General expressed his appreciation to the Akhuwat Islamic Microfinance which offered to share with the OIC Member States its experience. He commended the IsDB for its valuable contributions to organizing the seminar, which was in line with the relevant resolution of the 48th Session of the OIC Council of Foreign Ministers held in Islamabad, Pakistan, in March 2022.
Ambassador Fawad Sher, Permanent Representative of the Islamic Republic of Pakistan, Chair of the 48th CFM, chaired the seminar. It was attended by participants from OIC Member States and relevant institutions. The experts from IsDB, comprising Dr Nabil Ghalleb, Mohd Yusri Yusof, Mohammad Dodin, Alassane Ouattara and Mohamed Mazen Dakhli, also shared their valuable experiences based on their approach to economic empowerment of various groups of people in the OIC Member States.
Source: Saudi Press Agency