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, have signed a $100 million and a 50 million Euros agreements to support financing exports among African countries and the rest of the world.
The deals were signed by ITFC’s Chief Executive Officer (CEO), Hani Salem Sonbol, and Executive Vice President, Business Development & Corporate Banking of Afreximbank, Amr Kamel, at the Afro-Arab trade finance forum.
The event was organised by the Arab Bank for Economic Development in Africa (BADEA) in Dubai under the Arab Africa Trade Bridges Programme and by participants in the Afro-Arab Trade Finance Forum.
The facilities are for supporting procurement from suppliers from the member and non-member countries, including local purchase, to promote trade across Africa.
“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,” Sonbol said.
He pointed out that the partnership was aimed at financing 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 Southsouth cooperation.
Sonbol delivered the keynote speech at the opening session of the forum, 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 said the Afreximbank, established by African governments and institutional investors, saw the 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,” Kamel adding: “But I am mindful that realising the tremendous opportunities will require determination and hard work. We are committed to investing our resources in that direction.”