The agreement aims at boosting trade development across the country’s agriculture, energy, healthcare, and private sectors over a period of five years
Banjul, Gambia: The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IDB) Group, has signed a new 5-Year Framework Agreement in favour of the Government of The Gambia that target to provide up to US$ 50 million to the country on an annual basis. The agreement, signed with H.E. Mambury Njie, Minister of Finance and Economic Affairs (IsDB Governor), is a part of the Corporation’s ongoing efforts to combat the economic repercussions from COVID-19 and strengthen key economic sectors in member countries.
This US$250 million Framework Agreement will provide pre-export financing for major cash crops such as groundnuts and cashew nuts, the main agricultural produce in a sector that is a major employer of the country’s workforce. In addition, this agreement will also facilitate the import of essential agriculture inputs such as fertilizer.
In the energy sector, the financing will enable imports of key commodities such as refined petroleum, which is crucial to generate electricity in the country. Other sectors that will benefit from the five-year framework agreement include the healthcare sector through the import of medicines and health equipment, and the private sector through financing facilities to local banks and financial institutions aimed at boosting local SMEs.
Technical assistance for trade development aimed at building capacity and promoting information exchange and knowledge dissemination are other areas covered in the agreement.
H.E. Mambury Njie, The Gambia’s Minister of Finance and Economic Affairs thanked ITFC on behalf of the Government for its continued support, highlighting that this framework agreement would support national development goals to drive economic diversification and job creation across key growth sectors, whist facilitating trade and investment flows within the country, as well as globally through the country’s participation in agriculture value chains.
Reiterating ITFC’s commitment to supporting its member countries, Eng. Hani Salem Sonbol, ITFC CEO, said: “The five-year framework agreement will make way for further cooperation with the Government of The Gambia across key economic sectors whilst fostering greater collaboration with the country’s budding private sector to drive SME growth. In addition to crucial import-export financing, the agreement also has provisions to help develop the country into a stronger trading nation through enhanced capacity development and knowledge transfer programs.”
Since inception in 2008, ITFC has approved a total of US$607 million in favor of The Gambia. From energy to employment through agriculture, it reaffirms ITFC’s proven strategy of investing in key sectors of its member countries and thus contributing towards the development of the priority industries.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$55 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market