The Islamic Development Bank, under a three-year agreement, wants to support key sectors of the Cameroonian economy through integrated financing.The document between the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IDB) and the Republic of Cameroon was initialed yesterday Monday at a virtual ceremony between Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development (Governor of the IDB) and the Director General of ITFC, Hani Salem Sonbol.
With the US$750 million Framework Agreement, ITFC intends to make available to Cameroon an envelope of US$250 million per year over a three-year period.
The aim is to facilitate imports of commodities in the strategic sectors of energy, mining and health with medical supplies.
The institution will also continue its already significant support to the priority sector of agriculture with exports of commodities such as cotton and soybeans.
Through this Framework Agreement, ITFC will also extend its support to SMEs and the private sector through lines of financing to local banks and financial institutions.
In particular, it will intervene in trade development through capacity building initiatives aimed at strengthening key sectors, especially the health sector.
In addition, this agreement confirms Cameroon’s membership in the ITFC’s flagship Arab-Africa Trade Bridges (AATB) programme aimed at boosting trade flows and investments between Arab and African countries.
“We are very pleased with the agreements signed with ITFC. The three-year renewal of our cooperation framework is a sign of the strong vitality of the state of cooperation between Cameroon and ITFC and the constant will to implement a successful planning and programming strategy in Cameroon,” explained Alamine Ousmane Mey.
The latter stressed that “the financing of US$ 750 million will help the Cameroonian government to consolidate its economic recovery efforts in the particular context of the fight against COVID-19.”
For his part, ITFC Managing Director, Hani Salem Sonbol, reiterated the company’s commitment to accompany Cameroon in its economic recovery.
“We are keen to continue our fruitful collaboration with the government of Cameroon by providing the business solutions that best meet the country’s needs, especially with regard to the impacts of COVID-19,” he said.
Mr. Sonbol concluding his remarks saying “we are committed to working more closely with our partners and supporting the country in its efforts to develop strategic sectors such as agriculture, especially cotton, which is a major export product, as well as assisting the country’s financial institutions in stimulating private sector development and SME growth.”