The Islamic Corporation for the Development of the Private Sector (ICD), the private sector financing arm of the Islamic Development Bank (IsDB) Group, has signed a €25 million Shariah-compliant Line of Financing (LOF) with Coris Bank International Benin (CBI Benin).
Marking a major expansion of Islamic financing to bolster small and medium-sized enterprises (SMEs) and wider private sector activity in West Africa.
The four-year financing facility will enable CBI Benin to extend much-needed capital to SMEs and corporate clients across Benin, where access to finance remains a key constraint on business growth and job creation, particularly for early-stage and expanding firms.
The new line of financing is expected to directly support roughly seven SMEs and at least one larger corporate client. Economic projections linked to the facility estimate the creation of around 600 new jobs, underscoring both institutions’ focus on stimulating sustainable employment and inclusive growth.
By mobilizing Shariah-compliant finance, a form of lending and investment aligned with Islamic legal principles that prohibits interest and speculative practices, the partnership also aligns with broader regional efforts to diversify financial products and deepen financial inclusion across West Africa’s banking landscape.
For many SMEs in Benin, traditional banking products have been difficult to access due to stringent collateral requirements and risk-averse lending practices.
Shariah-compliant finance offers an alternative by pairing ethical investment principles with tailored financing structures that can be more accessible to a broader range of enterprises.
This latest agreement builds on a longstanding collaboration between ICD and Coris Holding, Coris Bank International’s parent group.
Over recent years, ICD has worked with affiliates of Coris Bank to establish Islamic banking windows and extend financing facilities across several West African countries, including Burkina Faso, Côte d’Ivoire, Mali, Senegal and Togo, strengthening Islamic finance’s footprint in the region.
Coris Bank International Benin itself began operations as a branch of the Burkina Faso-based bank in 2017 and became a fully owned subsidiary in 2019.
It is now a key player in the West African Economic and Monetary Union (UEMOA) area, providing a range of banking services and increasingly focusing on tailored SME support.
The facility underscores Islamic finance’s growing role in supporting private sector development in Francophone West Africa, where conventional banking solutions have sometimes struggled to meet the credit needs of smaller firms.
Beyond its immediate economic impact, the financing initiative embodies components of the United Nations Sustainable Development Goals (SDGs), particularly SDG 8, promoting decent work and economic growth, and SDG 17, fostering global partnerships for sustainable development.
It also intersects with SDG 9, which focuses on building resilient infrastructure and promoting inclusive industrialization, and SDG 5 on gender equality through inclusive financial access for women-led enterprises.
By expanding access to Shariah-aligned capital, ICD and Coris Bank aim to strengthen Benin’s private sector resilience and help reduce barriers for underserved entrepreneurs.
Financial inclusion measures like these are widely regarded by development economists as crucial for empowering local businesses, diversifying economies and reducing poverty.
Independent research shows that SMEs typically account for a large majority of formal employment in West Africa but often lack adequate credit, a gap that innovative financing mechanisms are increasingly designed to fill.
Headquartered in Jeddah, Saudi Arabia, ICD was established in 1999 to support private sector growth in IsDB member countries by providing Shariah-compliant financing, advisory services and investment facilitation.
The organization has a track record of deploying tailored financial structures, such as Lines of Financing, syndicated facilities and equity investments, across regions where market gaps persist. It enjoys strong credit ratings from major international agencies and continues to expand its portfolio in emerging markets.
ICD’s focus on SMEs reflects global development priorities. SMEs generate a disproportionately high share of employment in many developing economies yet face persistent challenges in accessing long-term funding.
Innovations in Islamic finance, including equity-like financing and profit-sharing structures, offer complementary channels of support to traditional banking systems.
In West Africa, where countries are navigating economic reform and structural diversification, enhanced SME financing can play a catalytic role in stabilizing growth and fostering innovation.
Financial partnerships like the one between ICD and Coris Bank are increasingly seen as instrumental in positioning the private sector as a central engine of sustainable development across the region.
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