Funding from the International Islamic Trade Finance Corporation (ITFC) will enable Tunisian state-owned enterprises to facilitate the importation of commodities, stimulate exports and access support programs.
The IDB (Islamic Development Bank) supports Tunisian international trade. More specifically, its subsidiary, the International Islamic Trade Finance Company (ITFC), has signed an agreement with the Tunisian government, with the aim of increasing trade flows and strengthening trade capacities within Tunisia. This agreement was initialed by the Tunisian Ministry of Economy, Finance and Investment Support.
The deal is for $1.5 billion. It aims, in particular, to support Tunisian public enterprises in financing the import of essential products such as energy and other industrial products, and to give them access to training programs on commercial development. The objective is to stimulate their exports and promote interregional trade with other Arab and African countries.
As part of the deal, signed by ITFC President Hani Salem Sonbol and Minister Ali Kooli, ITFC will help mobilize financial resources from international and regional banks and financial institutions. The objective is to stimulate their exports and promote interregional trade with other Arab and African countries.
Tunisian public enterprises will also have access to integrated business solutions developed by ITFC and benefit from regional business programs already initiated. Such as the Aid for Trade Initiative for Arab States (AfTIAS) program and the Arab-African Trade Bridges (AATB) program.
Which encourages trade and investment between Arab and African countries, enhancing the competitiveness of enterprises, reducing trade costs and improving technological capabilities. These companies will also benefit from ICR letter of credit and issuance confirmation products designed by ITFC to secure export transactions.
Cooperation and fruitful partnerships!
At the same time, a grant agreement was signed for a total amount of $15,000, intended to cover the cost of subscriptions to the virtual training platforms of the National Center for Technologies in Education, as part of its distance education program.. Which has been relaunched due to the Covid-19 pandemic.
The Minister of the Economy described the partnership and cooperation as “fruitful” between Tunisia and ITFC, “given the support it provides to many national institutions and to key players in strategic sectors, for them. help secure their raw material needs”.
He also stressed that the Tunisian government is keen to strengthen this cooperation and benefit from the various programs and mechanisms of the financial institution.
Reiterating the commitment of his company to support its member countries, the Director General of ITFC, estimated that the financial and commercial support that it is currently providing for the development of Tunisia is part of “efforts to diversify the local economy and stimulate recovery after the impact of Covid-19”.
It is essential that Tunisian import-export companies continue to trade with their Arab and African counterparts. The AfTIAS and AATB platforms “target value-added sectors, foster a skilled workforce and encourage the transfer of knowledge and technology between local business enterprises,” said Hani Salem Sonbol.
ITFC has provided approximately $1.5 billion over the past three years under the last framework agreement signed in 2018 to stimulate and diversify the Tunisian economy in the sectors of agriculture, energy, industry and pharmaceuticals. The beneficiaries of ITFC funding to date include the Tunisian Electricity and Gas Company (STEG), Tunisian Chemical Group, the Tunisian Company of Refining Industries (STIR), as well as the steel company El Fouladh.
