About AfTIAS 2.0

Background : 

  1. The Aid for Trade Initiative for the Arab States (AfTIAS) Program is a multi-donor and multi-beneficiary program managed by the International Islamic Trade Finance Corporation (ITFC) on behalf of the Islamic Development Bank (IsDB) Group. The Program aims to “foster Arab trade through enhancing enterprise competitiveness and facilitating trade”. The first phase of AfTIAS was implemented from 2013 to 2018.
  2. The second phase of the Program, AfTIAS 2.0, which was launched on 27 October 2021, is being implemented from 2021 to 2026.
  3. The anticipated minimum budget of the program, considering the estimated operational costs but also the large geographical scope, is US$ 40 million.
  4. To date, US$ 15.5 million has been mobilized from the Kingdom of Saudi Arabia (KSA), the Arab Republic of Egypt, the Islamic Republic of Mauritania, the People’s Democratic Republic of Algeria, the Arab Organization for Agricultural Development (AOAD), the Islamic Development Bank (IsDB), the International Islamic Trade Finance Corporation (ITFC), and the Trade Development Fund (TDFD).

During the last AfTIAS Board Meeting held in January 2019, the outcomes of the AfTIAS 1.0 and the evaluation of proceeding with a second phase of the Program were presented and endorsed by the Members and also welcomed the decision of the Arab Economic Summit held in Beirut (20/01/2019), calling upon ITFC to prepare the 2nd Phase of AfTIAS in cooperation with the League of Arab States (LAS) and all the Arab countries (22).

Based on this, the design for AfTIAS 2.0 Program was undertaken from July 2019 to February 2020 and then updated in March 2020 to take into account the new requirements arising from the COVID-19 pandemic impact on the economies of the region.

The design of AfTIAS 2.0 takes into account the key lessons learnt identified in the evaluation of the AfTIAS 1.0:

  • The need for a strong consultative process during the design phase, and a clear theory of change with measurable indicators of success to be developed during the design process.
  • AfTIAS 2.0 should be directly focusing on areas where it would have greatest impact.
  • The need for adequate financial and human resources to manage any further iteration of AfTIAS was also highlighted.

The AfTIAS 2.0 Program Document presents a summary of the problem analysis, objectives priority areas of interventions based on the needs of Arab countries, as well as the proposed implementation structures and modalities.

Development objective:

  • The Program’s development objective is to “enhance the environment for international trade in the Arab region by making it more efficient and inclusive, thereby creating opportunities for employment and contributing to sustainable development”.

Specific objectives:

  • The Program’s specific objectives are: (1) increasing intra-regional trade through the removal of market access barriers, (2) increasing the role of Arab States in global value chains, and (3) ensuring that the benefits of trade are shared more inclusively across all population groups, including, in particular, the vulnerable ones, such as women and youth. A particular focus of AfTIAS 2.0 Program is to assist Arab countries in overcoming the economic crisis caused by the Covid-19 pandemic and the regional and international geopolotical conflicts.

AfTIAS 2.0 Program operates on the basis of five main facilities:

  1. The Trade Development and Competitiveness Facility
    Addresses specific issues related to the removal of non-tariff barriers, regional trade promotion, encouraging enterprise innovation, increasing the technological readiness of businesses in the region, and supporting access to trade finance.
  2. The Inclusivity Support Facility
    Focuses on the support of different disadvantaged groups – the poor, women, youth, refugees, and internally displaced persons – to participate in value chains and international trade.
  3. The Regional Investment Proposal Preparation Facility (RIPPF)
    Supports and reinforces the capacities of government administrations in the Arab region to prepare bankable proposals for investment financing of trade infrastructure projects.
  4. The Reverse Linkage Facility
    Makes use of a technical cooperation mechanism enabled by IsDB, whereby institutions in Arab countries exchange their knowledge, expertise, technology, and resources to develop their capacities and devise solutions for their autonomous development.
  5. The Research and Surveys Facility
    Provides research necessary for the operation of AfTIAS 2.0, supports the development of centers of excellence in areas critical to AfTIAS 2.0, and provides support to NGOs within the region as well as governments of less-developed Arab countries to help them prepare high-quality applications for funding under the other facilities.

AfTIAS Program is a partnership between currently eight donors:

  1. Kingdom of Saudi Arabia (KSA)
  2. Arab Republic of Egypt
  3. People’s Democratic Republic of Algeria
  4. Islamic Republic of Mauritania
  5. Islamic Development Bank (IsDB)
  6. International Islamic Trade Finance Corporation (ITFC)
  7. Trade Development Fund (TDFD)
  8. Arab Organization for Agricultural Development (AOAD)