The Islamic Development Bank Institute (IsDBI) and the Universal Postal Union (UPU) have signed an agreement to launch a new project titled 'Prosper MSMEs'.
The project will explore how national postal networks in IsDB member countries can widen access to e-commerce and deliver Islamic finance-aligned digital financial services to micro, small and medium-sized enterprises (MSMEs) and underserved communities.
Postal networks often serve communities that commercial banks and private logistics providers do not reach. Through Prosper MSMEs, IsDBI and the UPU aim to leverage this extensive infrastructure to help small businesses participate more effectively in the digital economy.
The project will identify opportunities for postal operators to support MSMEs in selling online, enabling cross-border trade, and accessing Sharia-compliant payment and financing solutions.
Implementation
The project will be implemented in two phases across eight selected IsDB member countries:
Phase 1: Regulatory assessment. This phase will examine the regulatory frameworks governing e-commerce, postal services, digital payments, and Islamic finance in participating countries.
Phase 2: Market analysis. This phase will assess the barriers to e-commerce adoption among MSMEs, identify gaps in financial services, evaluate demand for Islamic financial products, and analyse the capabilities of the existing postal networks in the eight selected countries.
IsDBI finances the project and the UPU contributes its expertise, data resources, and engagement with its global postal network.
Objectives
Prosper MSMEs seeks to achieve three main objectives:
1. Conduct regulatory and market assessments that can guide practical, country-specific technical assistance for postal-led e-commerce and digital financial services.
2. In the eight selected countries, develop proposals for innovative postal-based e-commerce and financing solutions tailored to the needs of MSMEs, women and youth.
3. Present the findings and proposals to cooperation partners, including IsDBI, in order to mobilise resources for implementation.
The project will culminate in a consolidated master report bringing together findings from the participating countries and outlining a roadmap for implementation. The resulting evidence-based project pipeline will support governments, postal operators, and development partners in expanding digital market access and promoting ethical, inclusive finance for small businesses and underserved communities.
Established in 1874, the Universal Postal Union is an intergovernmental organisation and a specialised agency of the United Nations responsible for the postal sector. With 192 member countries, the UPU is the primary forum for cooperation among postal -sector stakeholders, helping to ensure a universal postal network of interconnected services.
The current membership of the IsDB consists of 57 countries.