Egypt Promotes Strategic Partnership with IsDB by Signing Two Agreements Worth $1.6 Billion to Finance Trade and Empower the Private Sector

 Dr. Rania Al-Mashat: Signing of new partnerships strengthens our joint efforts to enhance food security, provide strategic commodities, empower the private sector, and support exporters in accessing international markets.

 

 

Signing of the annual work program with the International Islamic Trade Finance Corporation (ITFC) worth $1.5 billion to provide petroleum and supply goods.

 

 

The Islamic Corporation for the Development of the Private Sector (ICD) provides $100 million in financing to the private sector in Egypt.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation and Governor of Egypt at the Islamic Development Bank Group, witnessed the signing of the annual work program between the International Islamic Trade Finance Corporation (ITFC) for 2025, as part of the framework agreement signed between the two sides for five years, as well as the annual work program for the Islamic Corporation for the Development of the Private Sector (ICD) in Egypt for 2025. This is part of the government’s plan to enhance private sector participation in economic activities. The event was attended by Lieutenant-General Eng. Kamel Al-Wazir, Deputy Prime Minister for Industrial Development, Minister of Industry and Transport, and Dr. Sherif Farouk, Minister of Supply and Internal Trade.

 

The annual work program of ITFC was signed by Eng. Hani Salem Sonbol, CEO of the ITFC, Mr. Hossam Ahmed El-Grahy, Vice Chairman of the General Authority for Supply Commodities (GASC), and Amal Tantawi, Deputy CEO for Financial and Economic Affairs at the Egyptian General Petroleum Corporation (EGPC).

 

This program contributes to providing financing worth $1.5 billion, with $800 million allocated to the EGPC and $700 million to the GASC. This will foster the country’s ability to address economic and social challenges and contribute to promoting Egypt’s food security by providing essential and strategic commodities, as well as supplying petroleum products to enhance the availability of petroleum products and energy in the Egyptian market.

 

The annual work program of ICD was signed by Eng. Hani Sonbol, Acting CEO of ICD. Under this program, the corporation will provide $100 million to financial institutions to financeSMEs, as well as large private sector companies operating in strategic sectors that are crucial for economic development.

 

The program also includes participation in direct investments, offering advisory services in the Islamic sukuk sector for both the government and private sectors, and enhancing the capabilities of workers in this field, in line with the state’s direction to diversify financing tools to stimulate investment and drive production, employment, and growth indicators in the Egyptian economy.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Governor of Egypt at the Islamic Development Bank Group, emphasized that the new agreements represent a strategic step that strengthens the extended developmental partnership between Egypt and the IsDB Group, which has resulted in many fruitful programs over the years.

 

H.E. Dr. Al-Mashat expressed gratitude for both the ITFC and the ICD for their pivotal role in supporting Egypt’s economic development efforts through trade financing programs and private sector development in various priority sectors.

 

H.E. Minister Al-Mashat commended the effective role played by ITFC in supporting foreign trade, especially the export sector, where strategic programs are being implemented to enhance international trade, including the "Arab-Africa Trade Bridges" program, the "She Trades 2" project, and the "Step Towards Export" (Step 2) program, among others.

 

H.E. Dr. Al-Mashat affirmed that the signing of the ICD’s 2025 program is part of the government’s plan to elevate the role of the private sector in Egypt’s ongoing comprehensive and sustainable development. She noted that the new program includes providing advisory services in the Sukuk sector to support the government’s efforts to diversify funding sources and attract foreign investments.

 

H.E. Minister Al-Mashat highlighted the continuation of the successful partnership through the ITFC’s annual work program in Egypt for 2025, which includes supporting the private sector in various diverse areas. The program will provide $100 million to financial institutions to finance SMEs, as well as large private sector companies working in strategic sectors that play a significant role in economic development, particularly the industrial and agricultural sectors, which the country’s structural reform plans aim to strengthen in terms of their contribution to GDP.

 

Lieutenant-General Eng. Kamel Al-Wazir, Deputy Prime Minister for Industrial Development, Minister of Industry and Transport, said that the ITFC and the ICD have played a vital role over the years in supporting member countries of the Organisation of Islamic Cooperation (OIC) through innovative financial solutions and supporting development projects that stimulate economic growth, create jobs, and enhance the role of the private sector, particularly small and medium-sized enterprises. He noted that this cooperation underscores the importance of unifying efforts to support vital sectors such as industry and transport, which are key drivers of development in any country striving for sustainable growth.

 

Dr. Sherif Farouk, Minister of Supply and Internal Trade, stated, “The allocation of $700 million from the ITFC for the GASC within the corporation’s annual program for 2025 reflects the institution's commitment to supporting the government’s efforts to achieve food security and fulfill the state’s obligations to its citizens.” He added that the cooperation was not just a financial commitment but a key pillar in supporting the state’s efforts to secure strategic commodity needs and enhance the Ministry of Supply’s ability to respond to urgent challenges and ensure market stability.

 

Eng. Hani Salem Sonbol, CEO of ITFC, said, "The ITFC values its partnership with Egypt, having approved $18.7 billion in funding for Egypt since 2008 to finance the energy sector, contribute to food security, and support small and medium-sized projects, as well as programs supporting women and exporters." He emphasized that in 2025, the ITFC will continue to increase cooperation with its partners and offer new programs and projects that empower women, youth, SMMEs, and exporters.

 

He clarified that the IDC will work in 2025 to strengthen its partnership and support Egypt's development plans by providing new funding for the development of the Egyptian private sector and Egyptian banks to support SMEs.

Egypt Promotes Strategic Partnership with IsDB by Signing Two Agreements Worth $1.6 Billion to Finance Trade and Empower the Private Sector