The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), has officially unveiled the Corporation’s Annual Development Effectiveness Report (ADER), titled ‘Towards a Resilient Trade’.
The main themes showcased in the ADER report include the following:
- Sustaining critical supply chains in member countries,
- Fostering an inclusive trade through support to MSMEs, smallholder farmers, and women,
- Laying out the foundation for sustainable and green trade.
Commenting on the official launch of the Report, Eng. Hani Salem Sonbol, Chief Executive Officer of ITFC, stated: “At ITFC, achieving results in terms of development effectiveness, or contribution to development, is just as crucial as the amount of trade we finance. This is the reason ITFC is also emphasizing ways to promote inclusive trade, rising to the challenge of regional integration, fostering partnerships to achieve the UN SDGs, and continuing to lay the foundation for sustainable trade.
“We are pleased to formally present an overview of the sixth edition of the ITFC’s Annual Development Effectiveness Report in this context. The pandemic has demonstrated that partnership and synergy provide the best pathway for dealing with global emergencies, enabling us to make a bigger impact that acts as a strong catalyst for development.”
ITFC’s role is to ensure that the Corporation’s resources are deployed where they have the greatest catalytic role in attracting private capital and addressing market gaps. Despite the challenges presented by the ongoing COVID-19 pandemic, ITFC and the Corporation’s strategic partners delivered some impactful results in 2021 as the ADER report highlights:
- ITFC approvals and disbursements in 2021 reached new heights with US$6.5 billion and US$5.1 billion, respectively
- Disbursements to Least Developed Member Countries amounted to US$1.5 billion, benefitting nine countries and up 25 percent compared to 2020
- Intra-OIC trade financed amounted to US$4 billion, with cumulative approvals to support trade between OIC member countries reaching US$44 billion since the institution’s inception
- Capacity to leverage funds exceeded targets and expectations as the Corporation mobilized a record US$4.5 billion from Syndicate Partners in the market, up 84 percent compared to 2020. Out of every US$5 dollars approved by ITFC, US$4 was mobilized from external partners
During disrupted times, ITFC played a key role in keeping trade flowing and in sustaining critical supply chains such as energy, food, and health:
- Disbursed US$810 million for the purchase of 3.3 million tonnes of food commodities, providing around 28 million households in OIC member countries to access to affordable, safe and sufficient food
- More than 25,000 patients, 1,500 health workers, and 13 health centers benefitted from PPE, medical equipment, and pharmaceutical products purchased through ITFC financing
- Disbursed US$3.8 billion to secure the supply of energy inputs in member countries, providing an estimated 11 million households with access to reliable electricity supply and supporting key sectors such as transportation, agriculture, and construction
To fill trade finance gaps among underserved groups, ITFC provided SMEs, smallholder farmers, and female-led businesses, with access to finance and a unique network and platform to connect to markets.
- More than 320 SMEs have benefitted from US$139 million of financing channeled through 18 partner banks
- In support of gender empowerment, ITFC supported the implementation of the She Trades initiative in Egypt and Morocco, benefiting over 110 women entrepreneurs and women-led SMEs through capacity-building trainings
- In the agriculture sector, ITFC redistributed US$250 million worth of income to around 600,000 producers for the purchase of 500,000 mt of agriculture commodities. ITFC pre-export financing contributed to US$416 million of export revenues for African LDMCs.
About the ITFC
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$61 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs.
With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.