Africa: International Islamic Trade Finance Corporation (ITFC) Delivers Impactful Trade Solutions in 2023 Amid a Changing and Challenging Global Environment

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JEDDAH, Saudi Arabia, April 29, 2024/ — The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank Group (IsDB), proudly announces the release of its 2023 Annual Report, on the them “Navigating Change, Driving Impact.” This report demonstrates ITFC’s resilience and adaptability in supporting its member countries through strategic trade financing and development initiatives amidst increased global economic uncertainties.

In a year characterized by persistent global challenges including economic disruptions and supply chain vulnerabilities, ITFC has successfully bolstered its efforts to support economic recovery and sustainable growth among its member countries. Through innovative trade solutions and dedicated sector support, ITFC played a critical role in fostering regional economic integration and enhancing the trade capabilities of OIC member countries, thereby contributing significantly to their socioeconomic stability.

Eng. Hani Salem Sonbol, CEO of ITFC, remarked on ITFC’s results: “Despite 2023 being a challenging year, ITFC delivered admirable results. Our focus was on minimizing the impact of global disruptions on trade and development in our member countries. The ITFC Annual Report reflects our achievements, the strength of our strategic approach, and our unwavering commitment to economic development and regional integration across the OIC member countries.

Highlights of the 2023 Annual Report

• Trade Financing. ITFC approved US$6.9 billion in trade finance, focusing on diversification beyond traditional sectors including agriculture and SMEs, highlighting a commitment to sustainable economic support;
• Support for SMEs and Private Sector Entities. ITFC intensified its support for the private sector with substantial finance approvals amounting to US$905 million, aimed at fostering entrepreneurship and job creation across the member states;
• Food Security. ITFC contributed significantly to food security by disbursing around US$2 billion to import 3.8 million metric tons of food commodities, benefiting over 22 million households in member countries. This effort aligns very well with the UN SDG 2: Zero Hunger;
• Agricultural Development. ITFC’s financing in agriculture supported the purchase of agricultural produce from farmers, providing US$254 million in pre-export finance to agricultural companies. This enabled timely payments to more than 600,000 farmers in Africa, fostering substantial agricultural exports worth US$528.8 million;
• Portfolio Diversification. In 2023, ITFC diversified its trade finance portfolio by extending significant support across various sectors, including a substantial US$4.2 billion towards the energy sector and strategic interventions in SME development, particularly enhancing women’s participation in trade through capacity-building programs;
• Trade Development Programs. The corporation advanced trade development by increasing intra-OIC trade, with ITFC mobilizing US$4.5 billion of trade finance from syndicate partners and facilitating a 17% increase in intra-OIC trade compared to the previous year. This effort supports SDG 17: Partnerships for the Goals;

The report also details ITFC’s proactive engagement in high-level dialogues and strategic partnerships, pivotal in advancing trade finance and development goals. It showcases the impact of flagship programs like the Arab Africa Trade Bridges (AATB) Program and various SME development programs, which have been instrumental in boosting intra-OIC trade and strengthening economic resilience.

Other Key Achievements in 2023

• Economic Impact. Through strategic initiatives and programs, ITFC has bolstered intra-OIC trade and significantly contributed to the economic empowerment of communities and sectors across the Corporation’s member countries;
• Capacity Building. Numerous training programs and workshops were conducted to enhance institutions’ trade professionals and their skills and capabilities, further enriching the trade ecosystem across member countries;
• Geographical Outreach. The financing covered operations in 22 countries, emphasizing ITFC’s widespread impact across all OIC regions;
• Sustainable Development Initiatives. ITFC participated in significant environmental actions, including the world’s largest-ever voluntary carbon credit auction, reflecting its commitment to sustainability;
• Intra-OIC Trade Finance. ITFC approved US$4.59 billion for intra-OIC trade finance, demonstrating a commitment to enhancing economic integration and cooperation among member countries;
• Strengthened Governance Engagement. ITFC continued its engagement with Governors to fortify support mechanisms, ensuring tailored financial solutions that address specific regional and national economic challenges;
• Focus on Least Developed Member Countries (LDMC). The LDMC’s share of the trade finance portfolio reached 44%, reflecting ITFC’s strategic emphasis on supporting the most vulnerable economies within its membership.

ITFC is committed to boosting economic prosperity across OIC member countries and will continue to enhance the Corporation’s trade finance and development initiatives to meet their evolving needs, as showcased in the 2023 ITFC Annual Report.

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