The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank Group (IDB), today released the fifth edition of its annual development effectiveness report titled ‘Accept disruptions to better rebuild‘, addressing the overwhelming disruptive impact of COVID-19 pandemic has taken over the world. The report highlights how the pandemic has created opportunities that can be harnessed to overcome the challenges it has imposed on each market.
The annual development effectiveness report (ADER) report showcases ITFC development effectiveness by focusing on certain thematic or operational aspects of its interventions. In 2020, ITFC showcased organizational resilience to face disruption, deliver results, approving US $ 4.7 billion in trade finance, including benefit 21 OIC member countries. In response to the unprecedented economic impact of the pandemic, ITFC responded quickly to the needs of its member countries with an ambitious and timely investment of $ 850 million COVID-19 Response plan to mitigate the impact of the pandemic and support commercial supply chains.
Commenting on the Institution’s achievements in 2020, Eng. Hani Salem Sonbol, CEO, ITFC noted, “As the pandemic unfolded, ITFC reacted quickly to help member countries respond to the immediate public health emergency and the resulting social and economic impact. the ITFC crisis response aimed at helping our clients meet their immediate needs during the epidemic and build their long-term resilience to external shocks. ITFC support was provided through a blended approach combining trade finance facilities with grants, allowing us to extend support to clients who needed it most. “
the COVIDThe -19 pandemic showed how critical development finance institutions (DFIs) are in times of crisis. The health and economic crisis that followed, caused by COVID-19 called for rapid, large-scale, unprecedented responses. ITFCThe main objective of the 2020 interventions was to support the recovery of member countries by restoring livelihoods, building resilience and restarting economic growth. In support of these objectives, ITFC placed particular emphasis on supporting MSMEs, sustaining agricultural value chains and building capacity to start addressing the challenges posed by the pandemic. In addition, ITFC laid the foundations for better rebuilding in a post-COVID-19 world.
A more inclusive, sustainable and resilient future for OIC member countries can be reached by placing more emphasis on policy dialogue, SDGs, regionalization and embracing technological disruption as key tools for better impact, which is demonstrated by some ADER strong points:
Health: In 2020, ITFC disbursed $ 15 million to mitigate the immediate impact of the pandemic on health. The funding enabled member countries to purchase EAR, testing and health-related equipment, and pharmaceuticals to strengthen their response capacity.
- The funding benefited member countries such as Maldives, Suriname, Benin, Palestine, Tajikistan and Burkina Faso.
- Overall, approximately 62,000 patients, 2,500 health workers and 40 medical facilities benefited from
Agriculture: More than 600,000 farmers have benefited ITFC pre-export and input financing, and capacity building initiatives totaling US $ 240 million
- Funding for agriculture has been steadily increasing since 2018, increasing by 3% and 13% respectively from 2019 and 2018 levels. Funding has benefited more than 600,000 farmers in Africa and Asia
- The value of cotton and peanuts exported to international markets by ITFC agricultural customers reached $ 360 million.
Private sector: 373 million US dollars channeled by 26 partner banks to 7,500 SMEs. ITFC has also intensified its activities in West Africa SMEof the program aimed at improving SMEs’ access to finance in order to support them during the COVID-19 economic crises.
- ITFC launched LC Confirmation products to help the private sector and SMEs in member countries recover from the impact of COVID-19.
- In 2020, MSME support has become an even more important goal of ITFC operations, becoming one of the pillars of COVID-19 Intervention program. ITFC approved 11 lines of financing worth US $ 133.2 million within the framework of the IsDB Group SPRP for the COVID-19 Pandemic.
- In 2020 alone, ITFC established new partnerships with banks and financial institutions in member countries such as Bangladesh, Maldives, Ivory Coast and Uzbekistan. The total number of private sector clients increased by 25% compared to last year.
In 2020, ITFC approved 80 trade finance transactions worth US $ 4.7 billion to 21 member countries; Disbursements reached US $ 4.1 billion.
Download the summary here – (https://bit.ly/3Cz791X)
Download the full report here – (https://bit.ly/3jJtDEP)
Distributed by APO Group on behalf of the International Islamic Trade Finance Corporation (ITFC).
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E-mail: ITFC@ itfc-idb.org
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About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IDB) group. It was created with the primary purpose of advancing trade between OIC member countries, which would ultimately contribute to the overarching goal of improving the socio-economic conditions of people around the world. Commissioned in January 2008, ITFC provided $ 55 billion in funding to OIC member countries, making it the leading provider of business solutions for the needs of these member countries. With the mission to become a catalyst for the development of trade for OIC member countries and beyond, the Company helps entities in member countries gain better access to trade finance and provides them with the necessary tools for trade-related capacity building, which would enable them to compete successfully in the global marketplace. .
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