· The International Islamic Trade Finance Corporation (ITFC) a member of the Islamic Development Bank (IDB) Group, has entered into a Murabaha financing agreement with Coris Bank International (CBI) of Burkina Faso.
· The Euro 20 million agreement is part of its West Africa SMEs Program, aimed at improving access to finance for SMEs in the region.
The International Islamic Trade Finance Corporation (ITFC) a member of the Islamic Development Bank (IDB) Group, has entered into a Murabaha financing agreement with Coris Bank International (CBI) of Burkina Faso. The Euro 20 million agreement is part of its West Africa SMEs Program, aimed at improving access to finance for SMEs in the region.This latest agreement is the fifth in a series of agreements signed between ITFC and CBI amounting to more than US$62 million.
ITFC’s West Africa SMEs Program focussing on the West African Economic & Monetary Union (WAEMU) zone includes Burkina Faso, Benin, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. According to official statistics, SMEs consisted of 90% of businesses and provided 80% of private-sector jobs in West Africa. However, they face several challenges such as difficulty in convincing financial institutions of the creditworthiness of their businesses and financing requests. ITFC’s West Africa SMEs Program supports entrepreneurs in the region to promote business viability through capacity development training in the crucial areas of accounting and finance, business plan development, and management best practices etc. It also supports banks to strengthen SME lending practices and modernize assessment tools and lending processes.
ITFC’s CEO, Eng. Hani Salem Sonbol said that In Burkina Faso, the initial pilot initiative was rolled out in 2018 when the Government of Burkina Faso signed a five-year US$1.5 billion framework agreement to drive trade development in the country. Since 2008, ITFC has approved a total of US$2 billion in trade financing for Burkina Faso. The Program he said has already proved to be beneficial in reducing the trade finance gap for local businesses by enhancing entrepreneurial capacity and increasing their business viability. It is hoped that the latest financing will further boost the country’s efforts to diversify its economy and strengthen private sector growth.
