The Islamic Bank of Guinea (BIG) has just launched an Islamic finance product « Murabaha » to allow pineapple growers in the country to acquire fertilizers and irrigation equipment as part of group orders made by the Federation of Planters from the Fruit Sector of Lower Guinea (FEPAF-BG).
Designed in collaboration with the Office of Strategic Execution of the Primature (BES), « Mourabaha », the first product of Islamic finance designed for a farmers’ organization in the country, is part of the revival of the pineapple sector put implemented by the BES, in support of the Ministry of Agriculture.
The new product offers particularly advantageous purchase and repayment conditions, including a repayment schedule aligned with the harvest dates (ie a grace period of up to 18 months) and a preferential financial cost (a margin of 7.5% over 18 months for fertilizer and a margin of 15% over 36 months for irrigation equipment). In total, the BIG has secured an envelope of nearly 2 billion Guinean francs to support the Federation.
The objective of the BES is to accelerate the implementation of government flagship initiatives through the development and incubation of effective, sustainable and results-based approaches to implementation and governance.