The Eastern and Southern African Trade and Development Bank (TDB) and the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, have signed a Memorandum of Understanding (MoU) to strengthen trade between OIC member states and those of TDB, during the World Bank Group and International Monetary Fund Annual Meetings in Marrakech, Morocco.
Under the MoU, TDB and ITFC will harmonize their efforts to provide robust trade finance solutions to better serve their respective Member Countries in Africa. These solutions encompass an array of financing products such as Murabaha, syndications, co-financing, risk-sharing, and Islamic factoring. Additionally, this relationship will explore opportunities for technical assistance and capacity building, for private sector and SMEs based in common member states.
Admassu Tadesse, TDB Group President Emeritus and Managing Director said: “Today’s signing builds on various years of collaboration between TDB and ITFC whereby TDB participated with close to USD 400 million in six ITFC Islamic syndications, in favor of TDB member states for the purchase of strategic food and energy commodities.”.
“Our reinforced cooperation will enable our institutions to optimize the impact of our financing.” said Mary Kamari, TDB Group Corporate Affairs and Investor Relations Executive. “We also look forward to cooperate on capacity-building and technical assistance, so as to support our private sectors in harnessing existing opportunities.”
Eng. Hani Salem Sonbol, CEO ITFC and Acting CEO ICD, noted, “This MoU marks a significant milestone in our ongoing efforts to foster international trade and economic development. By partnering with TDB, we aim to amplify our impact, facilitate more efficient trade flows, and offer targeted support to SMEs and private sector entities in our African member countries.”
TDB Group has been collaborating with other members of the Islamic Development Bank (IsDB), including with the Islamic Corporation for the Development of the Private Sector (ICD), a fellow member of the International Development Finance Club (IDFC), with which it is currently implementing an MoU to support private sector investment in common African member states.