The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, today signed eight strategic agreements to cooperate with the public and private sectors. Four agreements were signed with various Egyptian ministries, as well as four agreements with Cameroon, Senegal and Uzbekistan, and the African Import-Export Bank (Afreximbank).
The Agreement was signed at the 47th Annual Meeting of the Islamic Development Bank Group in Sharm el-Sheikh, Egypt, in the presence of the Prime Minister of Egypt, HE Dr. Mustafa Madbouly, HE Dr. Hala El-Said, Minister of Planning . and Economic Development of Egypt, Chairman of the Board of Governors of the Islamic Development Bank and Chairman of the Board of Governors of the Africa Arab Trade Bridge Program (AATB), and H.E. Mr. Dr. Mohammed Al Jasser, Chairman of the Islamic Development Bank Group. The agreements were signed with the Hon. Ms. Nevin Gamea, Minister for Trade and Industry, H.E. Dr. Rania Al-Mashat, Minister of International Cooperation, and Dr. Hisham Tawfiq, Minister of the Public Commercial Sector. The other four agreements were signed by representatives of the public and private sectors in the participating countries: Cameroon, Senegal and Uzbekistan, as well as by Afreximbank.
The US$6 billion deal signed with the Ministry of International Cooperation of the Arab Republic of Egypt to renew a five-year framework agreement was the largest in terms of dollar amounts. The renewal is an extension of the Framework Agreement signed in 2018 to meet Egypt’s food and energy needs.
The Agreements signed with the ministries and associations were with the Ministry of Commerce and Industry, the Ministry of Planning and Economic Development and the Association of Exporters of Egypt (Expolink) announcing the conditions of the establishment of the Export Academy under the umbrella of the second phase. of the Arab States Aid for Trade Initiative (AfTIAS). The other agreements were signed by members of the AATB Program, including Afreximbank, The International Islamic Trade, and Finance Corporation (ITFC) and The Islamic Investment Insurance and Export Credit Corporation (ICIEC) to support the Program’s action plan in the Arab Republic of Egypt. expand Egyptian exports to African markets. The AATB program operates to support Egypt’s efforts to enhance the presence of Egyptian exports in African markets and benefit from the African Continental Free Trade Agreement (AfCFTA). The proposed activities of the Program include the organization of Egyptian trade missions to several African countries, support for the participation of Egyptian companies in various economic forums and trade fairs in African countries, as well as support for the participation of Egyptian companies in various workshops and meetings of exporters and importers. The objective is to ensure the growth of Egyptian exports and investment projects in Africa, as well as to provide financing and export credit insurance for Egyptian exports to African markets.
The fourth agreement also came about as a letter of intent that was signed with the Ministry of the Public Business Sector to boost Egyptian SME exports by establishing a cooperation framework to increase trade between Egypt and Africa in cooperation between Jusoor and the Arab Africa Trade Bridges Program. . The letter of intent identifies areas of cooperation to support trade finance and trade development and provides advisory services to the Jusoor Company of the Ministry of Public Business Sector, which aims to promote bilateral trade between Egypt and African countries in various sectors such as cotton, as well as logistics, financial and insurance services for exporters and importers.
The remaining four deals were with representatives of private and public sector executives in Cameroon, Senegal, Uzbekistan and Afreximbank. For the first agreement, it was signed with Senegal on Murabaha financing worth 115 million euros to support the purchase of refined oil products to strengthen the energy sector in Senegal. The signature demonstrates the ITFC’s commitment to promoting trade among OIC member countries.
The second US$24 million deal was with Orient Finans Bank, one of the Corporation’s partners in Uzbekistan. The objective of the scheme is to support the trade finance needs of private sector and SME clients, as well as to promote women’s entrepreneurship in Uzbekistan. Under the agreement, ITFC will provide $24 million in two separate tranches, half of which will be allocated to meet the growing demand for Shariah-compliant trade financing among the Bank’s private sector and SME clients. The other half will be allocated to meet the financial needs of Shariah-compliant business for women entrepreneurs.
The third deal is an €8 million line of financing deal and was signed with Afriland First Bank in Cameroon to support the Bank’s clients’ needs for financing solutions for financed and unfinanced trade in key sectors such as energy and agribusiness. The agreement is aligned with the achievement of the UN SDGs, specifically number eight (decent work and economic growth) and number nine (industry, innovation and infrastructure). The agreement was signed by Mr. Youssoufa Booba, Executive Vice President of Afriland First Bank in Cameroon, and Mr. Hani Salem Sonbol, ITFC CEO.
Finally, a fourth condition document was signed between Afreximbank and ITFC to oblige ITFC to raise a US$250 million financing facility that will support Afreximbank’s trade finance program established to address the effects of the Ukraine crisis in Africa ( UKAFPA). Under the agreement, the Corporation will strengthen the Bank’s ability to help its clients in participating member countries purchase goods, particularly commodities that are experiencing rising price inflation in the global market. Afreximbank’s UKAFPA program is designed to alleviate the economic challenges resulting from the conflict that led to a global food crisis in the aftermath of the devastating pandemic, coinciding with the start of the global recovery from the pandemic. ITFC support actions will also promote South-South trade, deepening economic relations between Africa and Arab countries.