Agreements Signed on the Sidelines of the 2023 Islamic Development Bank Group (IsDB)
Annual Meetings in Jeddah, Saudi Arabia
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), has signed four major agreements with Mali, The Gambia and Djibouti amounting to over US$1.1 Billion on the first day of the 2023 IsDB Group Annual Meetings held in Ritz Carlton Hotel, Jeddah, Saudi Arabia. The financing will support the countries’ key sectors: agriculture, energy, and health, in addition to the private sector. This, in turn, will help to create economic growth opportunities for the countries and ensure a stable and secure supply of essential products.
The first is a 5-Year US$ 500 Million Framework Agreement between ITFC and The Republic of Mali. The agreement was signed by H.E. Mr. Alousséni Sanou, Minister of Economy and Finance, Mali, and Eng. Hani Salem Sonbol, CEO ITFC. The agreement will ensure closer cooperation and coordination of efforts between the Government of Mali and ITFC. This financing will pave the way for an extension of the strategic partnership to new collaboration areas in energy, agriculture, private sector, and health. The collaboration will also include Technical Assistance and Capacity building programs under the Arab Africa Trade Bridges (AATB) Program.
Another two Direct Murabaha Financing agreements were signed by H.E Seedy K.M. Keita, Minister of Finance and Economic Affairs, The Gambia, and Eng. Hani Salem Sonbol, CEO of ITFC. The first is a Direct Murabaha Financing Operation of US$35 million for the National Water & Electricity Company (NAWEC) in The Gambia. This financing will enable NAWEC to reliably generate electricity for the country in a more cost- effective manner. The second agreement is a Direct Murabaha Financing Operation of US$20 million for the Gambia National Petroleum Company (GNPC), for the import of refined petroleum products.
ITFC also signed a 3-year Framework Agreement with Djibouti for a total of US$600 million. Since its inception in 2008, ITFC has provided around US$1.4 billion of financing and capacity-building facilities for Djibouti. Over the next three years, ITFC will mobilize financial resources from international and regional banks and financial institutions to finance the energy, agriculture, health, and the private sector, in addition to providing Technical Assistance. Moreover, the agreement will cover collaboration under the umbrella of the AATB Program. The agreement was signed by H.E. Ilyas Moussa Dawaleh, Minister of Economy & Finance, in charge of Industry, Republic of Djibouti and Eng. Hani Salem Sonbol, CEO of ITFC.
Eng. Hani Salem Sonbol, the CEO of ITFC, stated: "ITFC is pleased to be working with our private sector partners from The Republic of Mali, Djibouti, and The Gambia to support economic development in these countries. Through our financing agreements in key sectors such as agriculture, energy, and health, we aim to create economic growth opportunities for these countries while ensuring a stable and secure supply of essential products. These agreements also demonstrate ITFC's ongoing commitment in supporting our member countries and contributing towards the United Nations Sustainable Development Goals."