ITFC boosts Cameroun’s economy with $750m

The International Islamic Trade Finance Corporation and the Republic of Cameroun have signed a $750m three-year agreement to support the country’s key sectors through Integrated Trade Solutions.

The ITFC disclosed this on Tuesday in a statement made available to Financial Street.

According to the corporation, the first signing is a three-year agreement amounting to $750m under which ITFC will provide Cameroun a financing envelope of $250m annually over a period of three years.

It will be used to facilitate the imports of key commodities in the strategic sectors of energy, mining, in addition to the health sector with medical supplies including healthcare equipment, ITFC explained.

Through the framework, ITFC will also be extending its support to small and medium-sized enterprises and private sector through financing facilities to local banks and financial institutions, among others, the corporation said.

“It will also support trade development through capacity building initiatives to strengthen key sectors including healthcare,” it added.

The ITFC’s representative at the signing, Alamine Mey, said, “We are very pleased with the agreements signed with ITFC. The three-year renewal of our cooperation framework is a sign of the good and strong cooperation between Cameroun and ITFC, and of the continued goodwill to implement a successful planning strategy in the country.

“The $750m financing will help the Camerounian government consolidate its economic recovery efforts in the specific context of the fight against the COVID-19 pandemic, by facilitating the importation of crucial energy products, medical supplies, and agriculture inputs, whilst strengthening the fundamentals of the economy of Cameroun through private sector and SME development. This is an opportunity for us to reiterate Cameroun’s sincere thanks to ITFC.”

The Chief Executive Officer of ITFC, Hani Sonbol, stressed that the corporation remained committed to supporting economic recovery in Cameroun.

“We are keen to continue our successful collaboration with the Government of Cameroun through providing trade solutions that best meet the needs of the country, especially in view of the impact of COVID-19.

“We are committed to working closer with our partners and to support the country in its efforts to develop important sectors such as agriculture, especially cotton, which is a major export commodity, as well as to support the country’s financial institutions to boost private sector development and SME growth.”

The second signing is related to a €98m Murabaha Financing agreement in favour of Société de Développement du Coton, which will be used to facilitate the purchase of agricultural inputs such as fertilisers, pesticides and herbicides, seed cotton, and soybeans.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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