The International Islamic Trade Finance Corporation (ITFC) announces a US $ 200 million Mourabaha financing agreement with the African Import-Export Bank (Afreximbank) to support African exporters.
The agreement will finance the export of commodities such as cashews, cocoa, sesame seeds and corn to about 11 countries in sub-Saharan Africa. The agricultural sector in Africa is the main employer of the continent and a key engine for the development of SMEs.
For Mr. Hani Salem Sonbol, Director General of the ITFC, “The financing of agricultural exports in these extremely difficult economic conditions is a lifeline for exporters affected by the impact of COVID-19 on the price of basic products. . Hundreds of millions of people in Africa depend on agriculture and food security in many countries depends on the import and export of food. ”
“This new partnership with Afreximbank will help support businesses and citizens in the fight against the coronavirus pandemic,” he said.
Africa has been a priority region for the ITFC since its creation in 2008, mandated to meet the development and economic needs of the member countries of the continent. In 2019, the ITFC disbursed nearly US $ 2.38 billion to help the region meet its major development challenges.
In total, since 2008 the ITFC has disbursed nearly US $ 15.6 billion in favor of the OIC member countries of the region enabling them to be supported in their economic growth, job creation and integration into the value chains of key export sectors such as agriculture, energy and industry.
It should be noted that ITFC partnered with Afreximbank for the first time in 2017 with the signing of a US $ 100 million agreement to facilitate and finance exports between African countries and between Africa and the rest of the world.
Afreximbank is also a strategic partner of the Arab African Trade Bridges Program (AATB) launched by the ITFC, a program whose mandate is to strengthen economic integration between the African and Arab regions and to promote the development of SME exports. in priority sectors.
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