The Road to the SDGs

investment for development. It is founded on three guiding principles: – Anchor interventions in the SDGs – Support regional value-chain integration as a step towards better integration in the GVC – Promote knowledge sharing. X IsDB’s role of tying end beneficiaries (demand-side) with contributors (supply-side) through a global grid of developers is one of the main guiding principles of all RCI interventions. This sees IsDB undertaking RCI-related roles as advisor, financier, capacity builder and knowledge broker, and partner. X Multiple SDG targets explicitly recognise the importance of planning and cooperation at the national, regional and international levels. X Following IsDB’s approval of the first RCI Policy in July 2019, a detailed RCI Operational Strategy was approved in December 2020. The strategy includes an assessment of IsDB’s RCI operations and partners in coordination with IsDB partners (such as the OIC General Secretariat, GCC, ECO, NEPAD, AMU, AfDB, ADB, ECOWAS, SESRIC, COMESA, UNESCWA and other partner institutions) and stakeholders encompassing all Regional Hubs and MCs. X The strategy adopts sub- regional programmes through RCI action plans, which include various economic sectors and are built on four basic pillars: – Strengthening cross-border connectivity – Improving the investment climate and FDI – Promoting Islamic trade and finance – Support for regional public goods. X Within this strategy framework, a significant share (approximately 30%) of financing approved by IsDB is allocated annually to regional projects. X Value-chain analysis guides the implementation of the RCI Strategy, and RCI considerations will be part of MCPS preparation. ACHIEVEMENTS X To date, the outcomes of IsDB’s RCI interventions are as follows: X Policy instruments: RCI Policy and RCI Operational Strategy, Annual RCI baseline reports and RCO mapping reports X Strategic orientation guidelines: RCI Action Plans Framework, COVID-19 Impact Report on RCI to guide IsDB’s Strategic Preparedness and Response Programme, and the first-ever regional strategic resource allocation model (the DEFAI model, which helps guide country allocations in support of the identified SDG financing gaps of MCs) X RCI impact on IsDB portfolio at a financing level: The average annual share of RCI approvals in total approvals is between 24% and 37% of IsDB portfolio. This clearly shows the importance of IsDB RCI operations as they constitute around a quarter of IsDB’s operations. X RCI grant financing — capacity building instruments: three grant programmes that contribute to the RCI agenda in IsDB, collectively offering an efficient tool to support IsDB’s efforts to realise better cooperation among MCs, by providing soft capacity and technical assistance to complement IsDB’s hard regional integration infrastructure. INVESTMENT X IsDB approvals for RCI projects (2016–2018) include: – Around US$ 2.3 billion for Africa region, – US$ 1.4 billion for Asia region, and – US$ 1.0 billion for MENA region. X This represents: – RCI financing allocated for cross- border connectivity — about US$ 3.5 billion – RCI under regional public goods for US$ 722 million – Trade and Islamic finance and investment — US$ 374 million and US$ 137 million of total RCI finance respectively. X Following the deployment of the RCI Policy and strategy instruments, the three RCI grant programme initiatives have collectively raised approximately US$ 3.2 million grant financing from development partners, often with new developers. X Going forward, IsDB will strive to attract and leverage global lending resources to the tune of US$ 1.25 billion initially to support RCI operations, including both internal and global initiatives. Similarly, IsDB will target US$ 5 million in grant financing from partners. R E G I O N A L C O O P E R A T I O N A N D I N T E G R A T I O N I M P A C T The average annual share of RCI approvals in total approvals is between 24% and 37% of IsDB's portfolio [ 61 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S