International Islamic Trade Finance Corporation supports Cameroon's cotton industry with €100m
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, signed a EUR 100 million syndicated agreement with the Government of Cameroon and Sodecoton as the Executing Agency for the export of cotton and the import of agricultural inputs. The Agreement was signed by HE Louis Paul Motaze, Minister of Economy, Planning and Regional Development, and IDB Group Governor for Cameroon, which took place at Yaoundé, Cameroon.
The financing is in line with Cameroon’s policy of promoting agricultural exports especially cotton. Sodecoton will ensure the distribution of the fertilizers, in addition to buy from farmers their raw cotton and process into cotton fiber for exporting. Cotton is one of the country’s main exports, and an important revenue generating vehicle for the country.
Mr. Abou Jallow, the special advisor to the CEO of ITFC and General Manager of Operations, ITFC commented, “ITFC approved a total financing of US$370.30 million for the Republic of Cameroon since its inception in 2008, and eighty (80%) of the approved financing went to the Agricultural sector. This financing is tailored to suit the financing needs of cotton farmers, and resembles ITFC drive to create impact on the people in our member countries.”
ITFC financing is a strong motivation for cotton growers to intensify production taking advantage of the ready market provided through the financing. This helps to support other small businesses linked to the cotton sector.
HE Louis Paul Motaze said, “This financing is directly providing means of livelihood to over 300,000 farmers and indirectly to over 3 million people in the North and Far-North regions of Cameroon by enabling the Government to provide the needed agricultural inputs to the farmers and ensure timely payment of cotton harvests of the farmers”
It is worth mentioning that Cameroon is one of the main oil-producing countries in Africa, thus in complementing the government’s Agricultural Support Program, ITFC is contributing to the government’s policy of diversifying the economy through the promotion of agriculture.