Ouagadougou
The International Islamic Trade Finance Corporation has renewed its longstanding support to Burkina Faso with the signing of 106 million Euro Facility terms under the Master Murabaha Agreement, to boost the country’s fabric sector.
The corporation, which is the trade finance arm of the Islamic Development Bank (IsDB) Group, has reached an agreement with Société Burkinabè des Fibers Textiles (SOFITEX) as the executing agency.
The facility provided aims to support the country’s cotton campaign, reinforcing International Islamic Trade Finance Corporation’s longstanding commitment to enhancing agricultural productivity and economic stability in Burkina Faso.
“The commitment of International Islamic Trade Finance Corporation (ITFC) to Burkina Faso’s economic development is once again demonstrated through this renewed financing facility. We recognize the critical role of the cotton sector in the economy and its impact on employment in Burkina Faso, which has been a key focus of our interventions since 2008,” said Nazeem Noordali, the Chief Executive of the ITFC.
Noordali explained that the partnership with SOFITEX aligns with their ongoing efforts to drive sustainable growth in the sector while ensuring its long-term resilience and prosperity.
“This financing will not only help boost cotton production but also create tangible impacts on rural livelihoods, strengthen value chains, and support the country’s sustainable economic growth. We look forward to the positive outcomes of this collaboration for Burkina Faso’s cotton sector and wider agriculture industry,” said M. Bienvenu Pare representing the CEO of SOFITEX.
The signing is in line with the USD 900 million Framework Agreement signed in May 2023 between ITFC and Burkina Faso.
With this financing, ITFC continues to play a crucial role in supporting Burkina Faso’s agricultural sector and contributing to the country’s economic stability and agricultural productivity while advancing SDG Goal 1 “No Poverty” and SDG 2 “Zero Hunger”.
Over the years, ITFC and the Republic of Burkina Faso have enjoyed a good and longstanding relationship with a total of USD 3.3 billion approved in financing across 48 operations in Burkina Faso, mainly in the energy and agriculture sectors.