The two-year Framework Agreement will focus efforts on trade promotion, specifically in sectors where significant added value is created
SHARM EL SHEIKH, Egypt: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (https://ICIEC.IsDB.org) and the Arab Republic of Egypt, represented by the Ministry of Trade and Industry and two other partners of the Arab-Africa Trade Bridges (AATB) Program, have signed a Framework Agreement to increase economic integration and support sustainable growth in all Arab and African countries.
The two-year Framework Agreement will focus efforts on trade promotion, specifically in sectors where significant added value is created. Moreover, industries that rely on a more skilled workforce and industries that can promote further investment will receive an added boost as a result of this work program.
Egypt has been one of the active Member States under the AATB since its accession in 2019 in a bid to enhance the movement of Egyptian exports in African markets, raising the total level of exports to $100 billion over the next five years. The framework agreement will also support the African Continental Free Trade Agreement (AfCFTA), which is one of the largest free trade areas in the world.
Coordination was made between the General Secretariat of the Program and the Development Projects Unit of the Ministry of Trade and Industry in the Arab Republic of Egypt, to design a work program for the benefit of Egypt, implement projects for the benefit of the Egyptian economy, and help the various sectors to enhance their capabilities.
The agreed activities, which will be implemented between 2022-2023, include a trade mission: to Tunisia – at least 100 bilateral meetings were held between Egyptian companies and their Tunisian counterpart (concluding initial contracts of more than $5 million dollars across 20 companies); and to Nigeria – at least 75 bilateral meetings were held between Egyptian companies and their Nigerian counterparts (concluding contracts of more than $4 million dollars across 15 companies).
The conclusion of deals and contracts with commercial partners from across Africa will also be realized, in participation with the African Export-Import Bank (Afreximbank), International Islamic Trade Finance Corporation (ITFC), including finance and guarantees for several African countries, and a share in an annual seminar to fund trading in Africa.
“Under this Framework Agreement between Egypt and the AATB partners of ICIEC, ITFC and Afreximbank we will foster greater trade flows between the two regions,” ICIEC CEO, Oussama Kaissi, said. “Increasing economic integration and supporting sustainable development in all Arab and African countries is the mission statement of this long-lasting partnership.”
ICIEC was established in 1994 to promote intra-OIC trade and investments by providing Shariah-compliant risk mitigation tools and financial solutions. ICIEC is uniquely the largest Shariah-compliant multilateral insurer in the world. It has led from the front in delivering a comprehensive suite of solutions to businesses and projects in its 48 Member States, including trade credit insurance products. and investment insurance products. Cumulatively, ICIEC has insured more than US$ 83.3bn in trade and investment since its inception, of which US$66.13 billion was for supporting the trade of Member States, and US$17.18 billion for foreign direct investment (FDI) flows into the Member States. ICIEC has provided insurance cover for entities in 48 Member States, enhancing their prosperity, development, and economic diversification.
For the 14th consecutive year, ICIEC earned an “Aa3” insurance financial strength credit rating from Moody’s, ranking the Corporation among the top of the Credit and Political Risk Insurance (CPRI) Industry. ICIEC’s resilience is underpinned by its sound underwriting, reinsurance, and risk management policies and practices.