ITFC signs Euro110.5 million deal with SENELEC


JEDDAH — The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, signed a Euro 110.5 million Murabaha Financing Agreement (CFA Franc 72.5 billion), in favor of SENELEC (Senegal National Power Company) to enhance the country's power system efficiency.

The agreement was signed by Eng. Hani Salem Sonbol, CEO, ITFC, and Mouhamadou Makhtar Cissé, CEO, SENELEC. Sonbol said after signing the agreement , “ITFC is pleased to participate in Senegal’s ambitious power agenda to address the country's energy needs.”

He continued, “The operation will contribute to secure the supply of petroleum products for electricity generation and power plants in the country, and therefore support its economic development. Moreover, the financing is expected to help improve people's living conditions in Senegal.”

Mouhamadou Makhtar Cissé said: “It is an important step for Senegal’s power sector. The financing will have a strong impact in providing much needed power to help sustain the country’s economic growth and implement Senegal’s Emerging Plan (“PSE 2035”).” He added that “The agreement shall therefore, contribute to the Government efforts to eliminate electricity shortage.”

The country has benefitted from more than $321 million of financing since ITFC’s inception in 2008.

Meanwhile, the ITFC signed a Euro100 million syndicated agreement with the government of Cameroon and Sodecoton as the Executing Agency for the export of cotton and the import of agricultural inputs. The agreement was signed by Louis Paul Motaze, Minister of Economy, Planning and Regional Development, and IDB Group Governor for Cameroon, which took place at Yaoundé, Cameroon.
The financing is in line with Cameroon’s policy of promoting agricultural exports especially cotton. Sodecoton will ensure the distribution of the fertilizers, in addition to buy from farmers their raw cotton and process into cotton fiber for exporting. Cotton is one of the country’s main exports, and an important revenue generating vehicle for the country.
Abou Jallow, the special advisor to the CEO of ITFC and general manager of operations, ITFC, commented, “ITFC approved a total financing of $370.30 million for the Republic of Cameroon since its inception in 2008, and 80% of the approved financing went to the agricultural sector. This financing is tailored to suit the financing needs of cotton farmers, and resembles ITFC drive to create impact on the people in our member countries.”
ITFC financing is a strong motivation for cotton growers to intensify production taking advantage of the ready market provided through the financing. This helps to support other small businesses linked to the cotton sector.
Louis Paul Motaze said, “This financing is directly providing means of livelihood to over 300,000 farmers and indirectly to over 3 million people in the North and Far-North regions of Cameroon by enabling the Government to provide the needed agricultural inputs to the farmers and ensure timely payment of cotton harvests of the farmers”
It is worth mentioning that Cameroon is one of the main oil-producing countries in Africa, thus in complementing the government’s Agricultural Support Program, ITFC is contributing to the government’s policy of diversifying the economy through the promotion of agriculture. — SG