The African Finance Corporation (AFC) said that it provided a Sharia-compliant commercial loan worth $250 million to Egypt in partnership with the International Islamic Trade Finance Corporation (ITFC).
AFC stated, in a statement issued on Tuesday, that the loan proceeds will contribute to addressing Egypt’s urgent priorities and enhancing economic flexibility by financing the purchase of petroleum products and vital agricultural commodities. The loan will be divided between the General Petroleum Authority to support fuel purchases and the Supply Authority to improve food and economic security through imports of basic agricultural commodities, such as wheat, corn, vegetable oils and sugar.
Samaila Zubairu, President and CEO of the African Finance Corporation, said, “This financing confirms the commitment of the corporation to collaborate with strong partners to deliver the financial innovation required to transform the African continent by driving local manufacturing to primary commodities and local products, as well as creating new job opportunities.”
He added, “We look forward to continuing the partnership with Egypt as we support the national agenda of the country’s Vision 2030.”
On his part, Hani Salem Sonbol, ITFC's CEO stressed the importance of the partnership, saying: “The Islamic Trade Finance Corporation is pleased to facilitate this financing for Egypt, which reaffirms our commitment to supporting "Economic growth and stability in our member countries. Our cooperation demonstrates in this period the strength and power of multilateral financial institutions coming together to address Africa's economic challenges."
It is noteworthy that the ITFC and the AFC provided loan facilities worth $50 million to Egypt in November 2022.
The African Finance Corporation also recently supported Samurai bonds worth 75 billion Japanese yen for a period of 5 years, issued by the Egyptian government as a new guarantor.
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