ITFC TO BOOST SENEGAL’S EXPORTS AND SME SECTOR BY US$1.5 BILLION INCLUDING A EURO 45 MILLION EXTENDED FOR SENEGAL’S GROUNDNUT SECTOR
(Dakar, Senegal, 8 November 2019) – The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a major Fframework Aagreement with the Republic of Senegal that will mobilize up to US$ 1.5 billion over a period of 5 (five) years (US$300 Million per year). The agreement was signed between ITFC CEO, Eng. Hani Salem Sonbol, and H.E. Amadou Hott, Minister of Economy, Planning & Cooperation (IsDB Governor) on the side lines of the AATB Governing Board Meeting hosted by the Government of Senegal on the 6 th to 8 th of November 2019.
ITFC will mobilize its own resources including financial resources from international and regional institutions to finance priority projects in Senegal, particularly to support the export
of agricultural products such as groundnuts, the import of agricultural inputs and foodstuffs and the import of basic energy products such as petroleum and electricity. The agreement
will also allow for the provision of financing facilities to local banks with the objective of supporting the Private Sector, with specific focus on SMEs.
“The three five-year agreement also provides scope for capacity-building programs, aimed at facilitating trade, especially in terms of researching new opportunities and external markets,
upgrading of local SMEs and training of experts in international trade”, said Eng. Hani Salem Sonbol, CEO, ITFC.
ITFC also signed a Euro 45 million Murabaha Financing agreement in favour of the Republic of Senegal, with SONACOS (the national groundnut company) as Executing Agent, to
finance part of Senegal’s 2019-2020 groundnut season. The financing will enable the purchase an estimated 140,000 Tons of groundnuts.
Groundnut is an essential crop in the vital agriculture sector in Senegal. An estimated 40 per cent of the population derive their livelihoods from the groundnut value chain. The financing
promotes inter-regional connectivity through the flow of intra-OIC trade since part of the groundnut products may be exported to OIC Member Countries.
“ITFC’s on-going commitment to finance Senegal’s groundnut sector greatly impacts not only the economic growth of the country but also the quality of life of about 4 million Senegalese,
which is in line with ITFC’s mandate to advance trade and improve lives in member countries”, concluded Sonbol.
H.E. Amadou Hott also expressed his gratitude to ITFC in supporting Senegal in order to boost socio-economic development in the country. In accordance with its founding principles,
the agreement is intended to make a lasting contribution to the livelihoods of the people of the Republic of Senegal by acting as a catalyst for trade development.
About the International Islamic Trade and Finance Corporation (ITFC)
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic
Development Bank (IsDB) Group. It was established with the purpose of advancing trade
among OIC member countries, which would ultimately contribute to the overarching goal of
improving socioeconomic conditions of the people across the world. Commenced operations
in January 2008, ITFC has since consolidated all trade finance businesses that used to be
handled by various windows within the IsDB Group. Earning the A1 rating by Moody’s
reflects the Corporation’s efficiency in service delivery by responding swiftly to customer
needs in a market-driven business environment.
Since 2008, ITFC has provided more than US$45 billion of trade financing to OIC Member
Countries, making the Corporation the leading provider of trade solutions for OIC Member
Countries’ needs. With a mission of being a catalyst for trade development among OIC
Member Countries and beyond, the Corporation helps entities in Member Countries gain
better access to trade finance and provides them with the necessary trade-related capacity
building tools, which would enable them to successfully compete in the global market.