(MENAFN-Mid-East.Info)
ITFC’s role is to ensure that the Company’s resources are deployed where they have the greatest catalytic role in attracting private capital and filling market gaps.
JEDDAH, Kingdom of Saudi Arabia: The International Islamic Trade Finance Corporation (ITFC) (a member of the Islamic Development Bank (IDB) Group), has officially unveiled the Annual Development Effectiveness Report (ADER) of Company, titled “Towards Resilient Trade”.
The main themes presented in the ADER report are as follows:
- Support critical supply chains in member countries,
- Foster inclusive trade by supporting MSMEs, smallholder farmers and women,
- Laying the foundations for sustainable and green trade.
Commenting on the official launch of the report, Eng. Hani Salem Sonbol, Managing Director of ITFC, said, “At ITFC, achieving results in terms of development effectiveness, or contribution to development, is just as critical as the amount of trade we do. finance. This is why ITFC also focuses on ways to promote inclusive trade, meet the challenge of regional integration, foster partnerships to achieve the UN SDGs and continue to throw the foundations of sustainable trade. We are pleased to officially present a preview of the sixth edition of ITFC’s Annual Development Effectiveness Report in this context. The pandemic has demonstrated that partnership and synergy offer the best path to address global emergencies, allowing us to have a greater impact that acts as a powerful catalyst for development.
ITFC’s role is to ensure that the Company’s resources are deployed where they have the greatest catalytic role in attracting private capital and filling market gaps. Despite the challenges posed by the ongoing COVID-19 pandemic, ITFC and the Company’s strategic partners achieved impactful results in 2021, as highlighted in the ADER report:
ITFC approvals and disbursements in 2021 hit new highs of $6.5 billion and $5.1 billion, respectively
Disbursements to least developed member countries amounted to $1.5 billion, benefiting nine countries and up 25% from 2020
Financed intra-OIC trade amounted to $4 billion, with cumulative approvals to support trade among OIC member countries reaching $44 billion since establishment of the institution
The ability to raise funds exceeded targets and expectations, with the Company raising a record $4.5 billion from union partners in the market, up 84% from 2020. On each tranche of $5 approved by ITFC, $4 mobilized from external partners.
During times of disruption, ITFC has played a key role in keeping trade flowing smoothly and maintaining essential supply chains such as energy, food and healthcare:
Disbursement of US$810 million for the purchase of 3.3 million tons of food commodities, enabling about 28 million households in OIC member countries to access affordable, safe and sufficient food
Over 25,000 patients, 1,500 health workers and 13 health centers benefited from PPE, medical equipment and pharmaceuticals procured with ITFC funding
Disbursing US$3.8 billion to secure the supply of energy inputs in member countries, enabling approximately 11 million households to have access to a reliable supply of electricity and supporting key sectors such as transport, electricity agriculture and construction
To address trade finance gaps among underserved groups, ITFC provided SMEs, smallholder farmers and women-led businesses with access to finance and a unique network and platform to connect to markets.
- Over 320 SMEs benefited from US$139 million in financing channeled through 18 partner banks
- In support of women’s empowerment, ITFC supported the implementation of the She Trades initiative in Egypt and Morocco, benefiting over 110 women entrepreneurs and women-led SMEs through trainings capacity building.
- In the agriculture sector, ITFC redistributed $250 million in revenue to about 600,000 producers for the purchase of 500,000 tons of agricultural produce. ITFC’s pre-export financing contributed to $416 million in export earnings for African PMMAs.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IDB) Group. It was established with the main objective of advancing trade among the OIC member countries, which would ultimately contribute to the overriding objective of improving the socio-economic conditions of people across the world. Commencing operations in January 2008, ITFC has provided $61 billion in financing to OIC member countries, making it the leading provider of business solutions for the needs of these member countries. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation assists entities in member countries to gain better access to trade finance and provides them with the necessary capacity building tools. trade-related capabilities, which would enable them to compete successfully. in the world market.
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