[2] The ICC conceived the idea of a short cricket tournament to raise funds for the development of the game in non-test playing countries.

[citation needed] The ICC decided to award the tournament to Bangladesh to promote the game in that nation.

Bangladesh did not participate as they were not a test playing nation at that time despite winning the 1997 ICC Trophy and qualifying for the 1999 Cricket World Cup.

However, the tournament eventually went ahead and the Bangladesh Cricket Board promised to donate 10% of the gate money to the Prime Minister's Fund for flood relief.

[5] The tournament was held in a direct knock-out format and involved all of the test playing countries of the time.

[14][15] The final of the inaugural edition was played between South Africa and West Indies on 1 November 1998 at Bangabandhu National Stadium, Dhaka.

South Africa achieved the target in 47 overs losing 6 wickets, with Hansie Cronje and Mike Rindel scoring 61 not out and 49 runs respectively.

[16][17] With this victory, South Africa won the inaugural edition of the ICC KnockOut Trophy.