MONEY MATTERS Afreximbank, IsDB arm to support African trade with $100m, €50m Murabaha fund

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, and African Export-Import Bank (Afreximbank), a multilateral financial institution established by African governments and institutional investors, have signed a US$100 million agreement and a EUR 50 million Murabaha agreement.

The agreements are to facilitate and finance exports amongst African countries and between Africa and the rest of the world.

They were signed by Eng. Hani Salem Sonbol, the CEO of ITFC, and Mr. Amr Kamel, Executive Vice President, Business Development & Corporate Banking of Afreximbank, at a ceremony during the Afro-Arab Trade Finance Forum, organised by the Arab Bank for Economic Development in Africa (BADEA) on December 21, 2017 in Dubai under the Arab Africa Trade Bridges programme.

The facilities are intended to be used to support procurement from suppliers from the member and nonmember countries, including local purchase, to promote trade across Africa.

Eng. Hani Salem Sonbol, CEO ITFC, stated: “This partnership comes as part of ITFC’s commitment to support the development of the African member countries’ exports as an important lever toward sustainable growth, job creation and poverty reduction.”

Eng Sonbol delivered a keynote speech at the opening session of the forum, that focused on identifying the prospects and opportunities between the Arab countries and Africa, and the best ways to tackle the challenges that hinder the development of trade flows in the countries.

Mr. Amr Kamel, Executive Vice President at Afreximbank, in his speech at the ceremony, stated that the bank saw the Murabaha partnership agreement as a stepping stone towards greater collaboration in pursuit of the bank’s shared vision with ITFC.