Africa: International Islamic Trade Finance Corporation (ITFC) Signs Twelve Agreements Totaling over US$750 Million with OIC Member Countries and Regional Partners

[Deeq A.]

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International Islamic Trade Finance Corporation (ITFC) Signs Twelve Agreements Totaling over US$750 Million with OIC Member Countries and Regional Partners
Agreements Signed on the Third Day of the 2023 Islamic Development Bank Group (IsDB) Annual Meetings in Jeddah
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JEDDAH, Kingdom of Saudi Arabia, May 13, 2023/ — The International Islamic Trade Finance Corporation (ITFC) (http://www.ITFC-idb.org), a member of the Islamic Development Bank Group (IsDB), has signed twelve major agreements with Algeria, Cameroon, Tajikistan, the Republic of Togo, and Uzbekistan. ITFC also signed agreements with regional partners; Afreximbank and ECOWAS Bank for Investment and Development (EBID) to support investment and development and an MoU Agreement with OCP Africa to establish an innovative financing mechanism for farmers.

The agreements will provide access to financial resources in order to facilitate the development of the private sector and stimulate economic growth. They will also cater to the development of a more efficient and effective trading system that will allow for more efficient and secure imports and exports.

Agreements

Furthermore, a Memorandum of Understanding between ITFC and the People’s Democratic Republic of Algeria was signed by Mr. Laaziz Faid, Minister of Finance, Algeria, and Eng. Hani Salem Sonbol, CEO of ITFC. This agreement aims to increase exports to OIC countries, support the Algerian Islamic Banking sector, and its extension to other OIC countries, as well as provide support for Algerian private and state-owned companies.

A Murabaha Trade Financing Facility for US$15 million was signed between ITFC and the Republic of Cameroon with Compagnie Camerounaise d’Aluminium (ALUCAM) as Executing Agency. This financing is in line with the Cameroon Government’s plan to support the strategic development of the bauxite industry and will strengthen Cameroon’s industrial sector by securing ALUCAM’s supply of alumina and other raw materials to produce Aluminum.

An AATB Country Program for Cameroon was signed, focusing on capacity development in trade facilitation, promotion of export value chains, Islamic finance, e-commerce, and private sector development engagements for the next three years. The agreements were signed by H.E. Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development, and Eng. Hani Salem Sonbol, CEO of ITFC.

A Three-Year Framework agreement for US$100 million was also signed between ITFC and the Republic of Tajikistan to ensure close cooperation and coordination of efforts between the Government of Tajikistan and ITFC. The agreement was signed by H.E. Mr. Zavqizoda Zavqi Amin, Minister of Economic Development and Trade of the Republic of Tajikistan, IsDB Governor, and Eng. Hani Salem Sonbol, CEO of ITFC.

ITFC signed a US$250 million Framework Agreement with The Republic of Togo to pave the way for an extension of the strategic partnership to three new key sectors including energy, agriculture, and the private sectors.

An agreement has also been signed as part of the AATB Country Program for Togo, which covers the country’s capacity development in trade facilitation, promotion of export value chains, Islamic finance, e-commerce, and private sector development engagements for the next three years. The two agreements were signed by Eng. Hani Salem Sonbol, CEO of ITFC, and Madam Zourehatou Kassah-Traore, Minister of Public Works, the Republic of Togo.

In order to develop and expand shariah-compliant banking, ITFC, and ICD signed a Memorandum of Understanding with Al Salam Bank in Algeria that will explore opportunities for cooperation. The agreement was signed by Mr. Huider Nasser, Al Salam Bank, and Eng. Hani Salem Sonbol, CEO of ITFC and Acting CEO of ICD.

Under the framework of a US$10 million trade finance facility, ITFC has signed a Line of Trade Financing Agreement with Agrobank, Uzbekistan to meet the trade financing needs of SMEs operating in the food and agriculture sectors. The Murabaha financing agreement was signed by Mr. Rustam Mamatkulov, Chairman of the Management Board of Agrobank, and Eng. Hani Salem Sonbol, CEO of ITFC.

An additional Line of Trade Financing Agreement for US$25 million Financing has been extended to Orient Finans Bank, Uzbekistan to meet the trade finance needs of private sector clients of the bank. This financing will support and promote women’s entrepreneurship and green financing as well. The agreement was signed by Tokhir Djunaydullaev, The Chairman of the Board, Orient Finans Bank, Uzbekistan, and CEO of ITFC, Eng. Hani Salem Sonbol.

Furthermore, a Syndicated Murabaha Trade Financing Facility for US$ 325 million was signed between ITFC and Afreximbank to support Afreximbank’s US$4 billion UKAPFA (Ukraine Crisis Adjustment Trade Financing Programme for Africa), which seeks to assist its member countries mitigate the effect of higher commodity prices due to the conflict and to support the trade finance needs of the private sector and State-Owned entities. The agreement was signed by Prof. Benedict Oramah, President, Afreximbank, and Eng. Hani Salem Sonbol, CEO of ITFC.

ITFC and The ECOWAS Bank for Investment and Development, a strategic regional bank of The Corporation in West Africa, have signed a EUR25 million Murabaha Financing Facility to meet the trade finance needs of private sector clients of the bank. Dr. Mabouba Diagne, Vice-President, Finance and Administration of EBID and Eng. Hani Salem Sonbol signed the agreement.

ITFC and OCP Africa signed an MoU Agreement that seeks to establish an innovative financing mechanism to provide farmer access to customized solutions and establish holistic solutions beyond just access to fertilizers to boost agricultural production yields and livelihoods for Africa’s smallholder farmers. The agreement was signed between Dr. Mohamed Anouar Jamali, CEO, of OCP Africa, and Eng. Hani Salem Sonbol, CEO of ITFC.

SOURCE
International Islamic Trade Finance Corporation (ITFC)

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