By 
Africa Finance Corporation (AFC) has entered into a groundbreaking agreement with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group, to provide a Sharia-law-compliant trade loan facility worth $250 million to the Government of Egypt.
This substantial financing is strategically designed to address Egypt’s immediate priorities, enhancing economic resilience by supporting the procurement of critical petroleum products and essential agricultural commodities. These commodities play a vital role in fortifying Egypt’s economic infrastructure.
The one-year trade loan facility will be equally allocated to two key state-owned entities in Egypt: the Egyptian General Petroleum Corporation (EGPC) for the acquisition of fuel and petroleum products, and the General Authority for Supply Commodities (GASC) to bolster food and economic security through importing essential agro-based commodities like wheat, corn, vegetable oils, and sugar.
Structured meticulously in accordance with Sharia principles, this trade loan facility represents a dynamic response to the evolving economic landscape in Africa.
Samaila Zubairu, President and CEO of AFC, expressed the organization’s commitment to collaboration, stating, “This underscores AFC’s commitment to collaborate with powerful partners such as the ITFC to deliver the financial innovation required to transform the African continent by driving local manufacturing, domestic value-addition of primary commodities and local job creation.”
Hani Salem Sonbol, CEO of ITFC, highlighted the significance of the partnership, saying, “The Islamic Trade Finance Corporation is pleased to facilitate this financing for Egypt, reaffirming our commitment to supporting the economic growth and stability of our member countries.”
This collaboration between AFC and ITFC builds upon their successful joint track record in Islamic finance, having previously provided a $50 million loan facility to Egypt and a EUR 25 million loan facility to Senegal in November 2022.
By combining their expertise and resources, this initiative is poised to make a lasting impact on Egypt’s economic landscape, reinforcing resilience and paving the way for continued progress. Notably, AFC had recently supported the JPY 75 billion 5-year Samurai bond issued by the Government of Egypt as a re-guarantor.
Comments