What's Hot

    Free trade: Qatar and Morocco conclude second round of talks

    January 31, 2023

    MENA startups raised almost USD 4 billion in 2022

    January 30, 2023

    Autochek acquires KIFAL Auto, expands to North Africa

    January 27, 2023
    Gulf Africa ReviewGulf Africa Review
    • Industry
    • Infrastructure
      1. Airport
      2. Hospitality
      3. Ports
      4. Power
      5. Rail
      6. Roads
      7. Transport
      Featured

      Osun seeks to capitalise on infrastructure momentum

      Infrastructure May 21, 2018
      Recent

      KarmSolar receives USD 3 million to develop Farafra Solar Grid

      January 11, 2023

      AD Ports Group reports strong growth

      January 3, 2023

      Hyosung Heavy Industries to start construction on South African energy storage project

      December 12, 2022
    • Business & Trade
      1. Agri-Business
      2. Entrepreneurship
      3. FDI
      4. Legislative
      5. MEA
      6. Telecoms
      7. Properties
      Featured

      Analysts predict bullish future for Nigeria’s REITs market

      Business Business & Trade January 21, 2018
      Recent

      Free trade: Qatar and Morocco conclude second round of talks

      January 31, 2023

      Gold-for-oil: Ghana attempts to address forex pressures

      January 18, 2023

      AD Ports Group reports strong growth

      January 3, 2023
    • Finance
      1. Banking
      2. Islamic finance
      Featured

      Social investment platform InvestSky raises USD 3.4 million

      Business Entrepreneurship Finance January 12, 2023
      Recent

      Social investment platform InvestSky raises USD 3.4 million

      January 12, 2023

      African startups face challenges in 2023

      January 10, 2023

      MENA startups raised USD 125 million in December

      January 6, 2023
    • Innovation
    Gulf Africa ReviewGulf Africa Review
    Agri commodities

    ITFC begins disbursing additional USD 3 billion in credit to Egypt, willing to provide more

    June 17, 20223 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    ITFC
    ITFC CEO Hani Sonbol said the organization was ready to support Egypt.
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The ITFC has extended its latest financing agreement with Egypt in order to assist with food and energy imports.

    The Islamic Trade Finance Corporation (ITFC) has begun dispersing a USD 3 billion credit extension to Egypt to address the rising costs of food and energy imports and will provide additional funds as required, as ITFC CEO Hani Sonbol.

    ITFC to address rising costs

    The rising cost of global commodities have placed enormous pressure on Egypt’s economy. The country is one of the world’s largest importers of wheat. With wheat prices driven higher by Russia’s invasion of Ukraine, the amount of the financing Egypt spends on food security was expected to rise to about the same share as spending on energy, Hani Sonbol said in an interview in Cairo. The ITFC has provided Egypt with USD 14 billion since 2008.

    In an effort to bolster domestic production, the Egyptian government is offering incentives to farmers to produce wheat and has set an output quota to tackle the shortage of the grain primarily driven due to the ongoing war in Ukraine. Farmers will not be allowed to sell excess crops outside the official procurement system without a license. 

    According to Sonbol, the Corporation seeks to encourage greater self-sufficiency in countries with large import bills but it felt “very comfortable” working with Egypt and would be ready to provide more financing once the current facility ended. “As soon as we finish this one we’ll sign the next one,” Sonbol said, adding that it was unclear when that could happen. “We are here to support,” he added.

    International exporters limited

    In an effort to source new international suppliers, Egypt initially turned to India and has sought to re-route limited supplies from Ukraine. However, in a surprise move, the Indian government banned the export of wheat exports in May when the price of a ton of wheat rose from USD 325 to USD 450 immediately following Russia’s invasion of Ukraine. It was initially hoped that Indian exports could help to offset the food security concerns caused by the Russian invasion.

    Confidence in Egypt’s economy

    Despite concerns surrounding the Egyptian economy, international credit rating agency Fitch recently assigned Egypt a credit rating of B+. Fitch claimed that the economic reforms being undertaken by the country showed promise and that, despite a large current account deficit, the country’s economy performed well in the second half of 2021.

    Egypt Islamic finance itfc wheat
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleSierra Leone’s Investment and Export Promotion Agency meet with Qatar Chamber to discuss economic cooperation
    Next Article Saudi Crown Prince Mohammed bin Salman to visit Egypt as start of regional tour

    Related Posts

    Business Culture & Society

    GBarena acquires Galactech in USD 15 million share swap

    January 19, 2023
    Business Energy

    Eni makes natural gas discovery offshore of Egypt

    January 16, 2023
    Business Infrastructure Power

    KarmSolar receives USD 3 million to develop Farafra Solar Grid

    January 11, 2023
    View 3 Comments

    3 Comments

    1. Pingback: Saudi Crown Prince Mohammed bin Salman visits Egypt on regional tour

    2. Pingback: EU wheat sought by MENA states as Ukraine conflict continues

    3. Pingback: Saudi Arabia’s sovereign wealth fund launches Egyptian investment vehicle

    Leave A Reply Cancel Reply

    LATEST STORIES

    Free trade: Qatar and Morocco conclude second round of talks

    January 31, 2023

    MENA startups raised almost USD 4 billion in 2022

    January 30, 2023

    Autochek acquires KIFAL Auto, expands to North Africa

    January 27, 2023

    Wafeq raises USD 3 million in seed round

    January 26, 2023

    African startups double debt financing

    January 25, 2023
    • Business
      • Agri-Business
      • Entrepreneurship
      • FDI
      • Legislative
      • MEA
      • Properties
      • Telecoms
    • Infrastructure
      • Airport
      • Hospitality
      • Ports
      • Power
      • Rail
      • Roads
      • Transport
    • Finance
      • Banking
      • Islamic finance
    • Commodities
      • Agri commodities
      • Metals & minerals
      • Precious metals
    • Culture & Society
      • Education
      • Energy
    GAR logo
    © GulfAfricaReview.com 2014-2022, All Rights Reserved.

    Gulf Africa Review is a trade news and future networking platform for businesses leaders and trade organisations, established to first inform and secondly assist in facilitating the ongoing business and trade relations between the Gulf Cooperation Council countries and Sub-Saharan Africa. We aim to provide an apolitical voice for this channel of economic activity in a way that benefits both geographies by improving the availability of information about market events, developments and opportunities, while publicising the successes achieved by this ever-broadening regional relationship.

      Subscribe to our newsletter

      Type above and press Enter to search. Press Esc to cancel.