The International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Development of the Private Sector (ICD) announced the launch of their annual work programme for 2023 in Egypt. The $1.5bn programme was signed between the two sides for a period of 5 years, amounting to $6bn.
The work programme of ITFC in Egypt for the year 2023 includes several activities that it will carry out in fields of trade financing, as it will provide Murabaha financing operations to the Egyptian public sector in favor of the Egyptian General Petroleum Corporation at a value of $ 800m and the General Authority for food commodities worth $700m.
The Foundation will also seek to provide financing lines to local Egyptian banks, including Banque Misr and the National Bank of Egypt, to support small and medium-sized enterprises (SMEs). Additionally, the ITFC will develop trade and business development and provide integrated trade solutions in Egypt through various programmes with its international partners such as the Arab-African Trade Bridges Programme to support Egyptian exporters and link Egyptian companies with trade relations and partnerships with African countries, and the second phase of the Trade Assistance Initiative program.
The annual work programme for 2023 also includes the design and launch of the second phase of the program to support small women-owned companies in handicraft sector, holding meetings between cotton exporters from Africa with actors in the cotton sector in Egypt, and follow up of the implementation of value chains project in the cotton sector in partnership With the United Nations Industrial Development Organization (UNIDO). Besides, cooperation with the Egyptian General Petroleum Corporation and the General Authority for Supply Commodities in the field of digitizing international trade through the two projects of digitizing documentary credits and digitizing shipping documents.
Furthermore, the ICD signed programme aims to support private sector and SMEs with around $120m. The business program of the ICD in Egypt for the year 2023 includes financing lines for financial institutions operating in Egypt, by expanding the scope of financing line facilities in the medium term to include financial institutions in Egypt with a target amount of $80m to support private sector companies, especially SMEs. The Foundation will also provide financing to private sector companies and infrastructure projects, with a total target value of $40m.
For his part, Hani Salem Sonbol, CEO of the ITFC and Acting CEO of ICD, said: “The work programme of the Islamic Corporation for 2023 with the Arab Republic of Egypt is a continuation and confirmation of the strategic relationship between the Corporation and Egypt. Since 2008, the foundation has adopted $14.52bn for Egypt for financing and supporting energy and food commodities, programmes to empower exporters, youth, women, and SMEs, and launching a number of programmes and projects to develop and facilitate trade and support the export sector.”