The International Islamic Trade Finance Corporation (ITFC) has signed a EUR400 million (US$438.7 million) 2023 annual plan agreement with the Republic of Senegal, which falls within the revised US$1.5 billion five-year framework agreement originally signed in 2019.
“Our partnership with Senegal is of great importance to us as we strongly believe in the country’s potential. We are therefore committed to supporting Senegal and strengthening our intervention in strategic areas such as the agricultural value chain, food and energy security and the small- and medium-sized enterprise sector,” Hani Salem Sonbol, CEO of the ITFC, commented.
The five-year framework agreement was expanded in 2021 to include new priority sectors including the health sector in the wake of the COVID-19 pandemic. The expanded framework covers the priority sectors of agriculture, SMEs, energy and healthcare.
The ITFC also signed the Arab Africa Trade Bridges (AATB) Country Program with Senegal, which will span over two years. The program will cover interventions on capacity development and trade promotion in the agro-food, pharmaceuticals and e-commerce sectors.
The AATB program will run from 2023 to 2024 with the aim to help the nation increase its trade with other countries in the African and Arab regions in the agricultural and pharmaceutical sectors.
According to the ITFC, the program will support the deployment of commercial projects and high-potential sectors in the Arab region in line with the African Continental Free Trade Area agreement.
As part of the ITFC’s official visit to Senegal, Hani signed the agreements in Dakar with Senegalese Minister of Economy, Planning and Cooperation Oulimata Sarr.
Hani also held several high-level meetings with the authorities of the Republic while on his official visit including a meeting with Prime Minister Amadou Ba as well as with the director-general of Banque Islamique du Senegal, Mouhamadou Madana Kane.
Since its inception in 2008, the ITFC has channeled financing in excess of US$1 billion to Senegal to support sectors including agriculture, healthcare and energy, which it considers to be strategic sectors. The financing has also contributed to supporting the Senegalese private sector.