USD 2.5 billion
The Lives and Livelihoods Fund (LLF), launched in 2016, was created to tackle poverty in the Muslim world. With over 30% of the world's impoverished people living in the Islamic Development Bank's member countries, the LLF will play a critical role in providing affordable financing for the least wealthy countries in the Bank's membership.
LLF provides a combination of grants and concessional loans to support the poorest people by financing projects that improve health, increase agricultural productivity, or build basic infrastructure. By blending grants with affordable loans, the LLF unlocks capital for those that would not normally be able to access this level of financing.
Abu Dhabi Fund for Development (ADFD), Bill and Melinda Gates Foundation (BMGF), UK Foreign, Commonwealth & Development Office (FCDO), Islamic Solidarity Fund for Development (ISFD), King Salman Humanitarian Aid and Relief Centre (KSRelief), Qatar Fund for Development (QFFD)
Once financing agreements have been signed, the Islamic Development Bank sets up an in-country Project Management Unit (PMU), where necessary, to launch the project and monitor progress.
The IsDB acts as the LLF’s trustee and has established an impact committee (IsDB + donors) and management unit (IsDB) to coordinate the fund’s activities. Development projects are processed in accordance with the IsDB’s project cycle after their approval by the LLF’s Impact Committee.
The Lives and Livelihoods Fund finances projects in health, agriculture, and
rural infrastructure that meet three criteria: relevance, readiness, and results.
- Relevance: Projects financed by the Lives and Livelihoods Fund align with the mandate of the Fund and the Poverty Reduction Strategy of the member country benefiting from the finance. Selection of projects considers the country’s development status and the incidence of poverty.
- Readiness: Projects financed by the Lives and Livelihoods Fund are ready to go. The selection of projects considers the effective delivery of projects – the quality, maturity, and expected impact.
Results: Projects financed by the Lives and Livelihoods Fund should make an immediate impact on the lives of ordinary men, women, and children on the ground. Selection of projects also considers efficiency – the country’s track record in implementing projects.
See Summary of key criteria for selecting LLF projects here.
95% of LLF resources are targeted at the IsDB's least developed as well as lower-middle income member countries. These countries include: Afghanistan, Bangladesh, Benin, Burkina Faso, Cameroon, Chad, Comoros, Cote d'Ivoire, Djibouti, Egypt, The Gambia, Guinea, Guinea Bissau, Indonesia, Kyrgyz Republic, Maldives, Mali, Mauritania, Morocco, Mozambique, Niger, Nigeria, Pakistan, Palestine, Senegal, Sierra Leone, Somalia, Sudan, Tajikistan, Togo, Uganda, Uzbekistan, and Yemen.
The LLF finances sovereign projects, with governments of member countries being the applicants and beneficiaries. Projects are required to be from eligible countries and sectors.
The process for funding requests follows a routine procedure from the Islamic Development Bank (IsDB):
File an official request for LLF financing for a proposed project which will be received by the IsDB governor office. The request must be accompanied by a technical proposal as well as other documentation e.g. feasibility studies, investment cases etc.
The request will be forwarded to the relevant IsDB regional hub office and processed.
Applicants who need support in strengthening their technical proposal and project documentation can reach out to the IsDB regional hub or LLF Management Unit, and limited technical assistance can be provided from the LLF/IsDB through the LLF Project Preparation and Implementation Facility.