ITFC, Afreximbank to Support African Trade with $100m, €50m Agreements

Emma Okonji

The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, and the African Export-Import Bank (Afreximbank), a multilateral financial institution established by African governments and institutional investors, have signed a $100 million agreement and a EUR 50 million agreement with the aim of facilitating and financing exports among African countries and the rest of the world.

The agreements were signed by the Chief Executive Officer (CEO) of ITFC, Hani Salem Sonbol, and the Executive Vice President, Business Development and Corporate Banking of Afreximbank, Mr. Amr Kamel, in a ceremony held during the Afro-Arab Trade Finance Forum, which was organised by the Arab Bank for Economic Development in Africa (BADEA), in Dubai under the Arab Africa Trade Bridges Programme.

The facilities are intended to be used to support procurement from suppliers from the member and non-member countries, including local purchase, to promote trade across Africa.

According to Sonbol, “This partnership comes as part of ITFC’s commitment to support the development of the African member countries’ exports as an important lever toward the sustainable growth, job creation and poverty reduction.”

He pointed out that the partnership would be utilised to finance African OIC member countries under the “Arab-Africa Trade Bridges” Programme, a regional trade promotion programme that aims at addressing some of the challenges faced in promoting trade between the two regions and supporting South-South cooperation.

Sonbol delivered a keynote speech at the opening session of the forum that focused on identifying the prospects and opportunities between the Arab countries and Africa, and the best ways to tackle the challenges that hinder the development of the trade flows in these countries.

Kamel, in his speech at the ceremony, stated that Afreximbank saw the partnership agreement as a stepping stone towards greater collaboration in pursuit of the bank’s shared vision with ITFC.

He said: “ITFC has demonstrated that it stands shoulder to shoulder with the African Export-Import Bank as they collaborate to develop the African Continent and promote inter-African trade. I see great prospect for the unfolding Afreximbank-ITFC partnership,” Mr. Kamel added, “but I am mindful that realizing the tremendous opportunities will require determination and hard work. We are committed to invest our resources in that direction.”