A 1 billion dollar development fund for Africa projects has been signed by the Saudi-based Islamic Corporation for the Development of the private sector (ICD). According to Arab Business, the agreement was signed with IL&FS Investment Managers Limited (IIML), the private equity arm of the IL&FS Group. ICD and IIML will work together to set up a fund to finance small to medium-sized infrastructure projects in Africa aimed at the healthcare, transport, utilities, power and telecommunications industries.

It will mainly target the power and transport sectors and will support integrated projects in Africa, according to the statement.

Khaled Al Aboodi, CEO of ICD, said: "This strategic cooperation brings complementarity between our institutions to the realization of a common vision. A vision to demonstrably influence growth by participating in the much-required infrastructure sector in Africa through a private sector, aligned with ICD and the strategy of the IsDB Group.

The objective of the fund, which will follow the principles of Sharia'h, is to finance commercially viable and sustainable projects while at the same time helping to create infrastructure for the development of the private sector, mainly on the African continent.