International Islamic Trade Finance Corporation (ITFC) has announced that in the third quarter of 2019, it helped in boosting growth in these nations by financing transactions to the tune of $2.2 billion. It is a significant development and shows the sort of financial commitment that has been made by the ITFC in the region.
The ITFC signed Major Framework Agreements with as many as five different nations Kyrgyzstan, Uzbekistan, Senegal, Tunisia, and Djibouti, to bring about greater cooperation with other members of the OIC.
Additionally, the organization provided lines of credit to banks in these countries, also provided support to small and medium enterprises, and worked towards the promotion of Shariah finance in the region.
ITFC’s CEO, Eng. Hani Salem Sonbol said,
The signing of these new frameworks signifies our commitment to developing strategically important relationships with OIC member countries, which are a crucial step on the journey towards boosting inclusive socio-economic growth.
In this regard, it is important to mention that the organization made a lot of progress about its work in Africa during the third quarter. ITFC has done some of the most interesting work in the Republic of Senegal. A framework agreement worth as much as $1.5 billion was inked back in July this year by way of which foodstuff and agricultural products were imported into the country. In addition to that, the ITFC also worked towards developing the capacity of the exporters in the country to help with the prosperity of privately held exporters. That being said, it should be kept in mind that ITFC has been one of the biggest benefactors of Senegal’s trade ecosystem for more than a decade now. The organization has invested as much as $441 million in the country by way of trade development specific support. It first started supporting the trading infrastructure in the country back in 2008, and its support has only grown stronger over the next decade.
The reason behind these massive investments in the region is primarily down to the unfulfilled potential, and ITFC’s CEO said as much about the matter. He said,
There is immense untapped economic potential in OIC markets. ITFC’s trade development interventions is aimed at supporting these countries’ efforts towards structural transformation and economic diversification through a diverse portfolio targeting all crucial sectors from energy to agriculture and the private sector.
On the other hand, Tunisia also managed to get $136 million in support from the ITFC. The support was provided back in June in the form of a Murabaha Agreement that was signed directly with the government of the country.