Egypt secures $100 million ITFC financing to cover strategic staple imports

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank, signed a $100 million financing agreement with Egypt to cover strategic commodity needs amid the coronavirus pandemic.

The General Authority for Supply Commodities (GASC), Egypt’s state grains buyer, has signed the ITFC funding agreement.

According to a statement, the funding will help Egypt’s GASC mitigate the harsh human impacts of the coronavirus pandemic by securing food commodity imports.

The funding – which forms part of the ITFC’s Master Murabaha Agreement – will be used to purchase 240,000 tonnes of wheat and 100,000 tonnes of sugar.

ITFC’s chief executive Hani Salem Sonbol said the facility approved by the ITFC is specifically aimed at supporting the import of critical basic commodities such as wheat and sugar, which are two staples the mass population of Egypt relies on.

“ITFC is committed to doing what it can to assist in achieving food security in Egypt during a time when national economies are struggling with the economic impact of this terrible new disease,” Sonbol said.

Since 2018, ITFC has been supporting the Egyptian government’s efforts through providing a trade finance facility benefiting the GASC.

In 2019, ITFC earmarked $393 million for Egypt that was dedicated to import 1.3 million tonnes of wheat and 130,000 tonnes of rice.