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The African Development Bank (AfDB) and the Islamic Development Bank (IsDB) have signed an agreement to jointly pull together $2 billion over the next three years to finance projects in Africa.

The projects will cover agriculture and food security, renewable energy, small and medium enterprises, and human development (health and education), according to a statement on Tuesday.

Speaking at the agreement signing ceremony at the AfDB headquarters in Abidjan, Akinwumi Adesina, the President of the AfDB, said its partnership with the IsDB is geared towards helping accelerate Africa's economic transformation.

“Today’s meeting is about collaboration and partnership. AfDB and IsDB share common traits and the agreement we are signing is the highest with any development bank,” Adesina said. “We are going to work on a pipeline of projects in Africa stretching from agriculture to SMES, energy and human development. We need to create jobs for our women and youth.”

The IsDB is one of the largest contributors of co-financing to the AfDB. The AfDB and IsDB have co-financed projects valued at over $2.5 billion between 2002 and 2016.

The AfDB has a country presence in 21 out of the 27 common member countries with the IsDB. As part of the new agreement, AfDB and IsDB plan to complement and make use of each other’s staff expertise at country-level.

The Islamic Development Bank is a multilateral development financing institution located in Jeddah, Saudi Arabia. The IsDB was founded in 1973 and has an authorized capital of $100 billion.

“We look forward to working with the AfDB in moving SMEs towards industrialization, renewable energy and agriculture and food security,” said Bandar Hajjar, the President of the IsDB. “These areas will create jobs and lead to economic transformation and improve the lives of the people of Africa. SMEs can transform African economies from primary to industrial hubs.”