The International Islamic Trade Finance Corporation (ITFC) has pumped $9.6bn into Egypt in the period from 2008 until June 2020, according to Minister of Planning and Economic Development Hala El-Said.
The ITFC funding has been funnelled to a range of public and private sector companies, including the Egyptian General Petroleum Corporation (EGPC) and other public sector beneficiaries. Funding from the corporation has also gone to the Social Fund for Development and three companies from private sector.
El-Said’s statements came during a meeting between the minister and ITFC’s CEO Hani Sonbol.
The minister praised the ITFC’s remarkable activities in development, and the notable rate of progress in implementing its Egypt funding programme for 2020. The ITFC is providing $1.1bn in cost-plus financing (Murabaha) of which the EGPC was granted $600m, and the General Authority for Supply Commodities (GASC) was granted $500m.
El-Said also reviewed the government’s measures to curb the spread of the novel coronavirus (COVID-19), and support of the economy against the pandemic. At the same time, the minister also highlighted the social protection measures that will be put in place from July, such as wage rises and pensions.
She highlighted the importance of Egypt’s joining the Arab African Trade Bridges initiative in October 2019. This comes in addition to the country’s contribution and cooperation with the United Nations Industrial Development Organization (UNIDO) in implementing supply chain development.
Meanwhile, Sonbol stressed that the ITFC aims to cushion the impacts of the coronavirus on member countries dependant on their needs. The corporation has earmarked $300m for its first response facility, with a further $550m for the recovery phase.
The ITFC was established in the Saudi port city of Jeddah in 2007, starting operations in January 2008. The corporation works as an independent body, and reported that, until 2019, it had held an authorised capital of $3bn and subscribed capital of $857m to develop trade.