Egypt has taken a significant step to further strengthen its strategic partnership with the Islamic Development Bank (IsDB) by signing two major agreements worth a total of $1.6 billion aimed at boosting trade finance and empowering the private sector. These agreements, which include annual programs for both the International Islamic Trade Finance Corporation (ITFC) and the Islamic Corporation for the Development of the Private Sector (ICD), will help Egypt enhance food security and meet its strategic needs, as well as support its growing private sector.
The agreements were signed in the presence of Dr. Rania El-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the IsDB. Also present were Engineer Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, and Dr. Sherif Farouk, Minister of Supply and Internal Trade.
$1.5 Billion Program for Trade Finance
The annual program with the ITFC, amounting to $1.5 billion, was signed by Engineer Hani Salem Sonbol, ITFC CEO, and representatives from Egypt’s General Authority for Supply Commodities (GASC) and the Egyptian General Petroleum Corporation (EGPC). The program allocates $800 million to EGPC and $700 million to GASC, helping Egypt secure essential petroleum and food commodities to support economic stability and food security. This funding will also ensure an adequate supply of petroleum products, strengthening Egypt’s energy market.
$100 Million to Empower Egypt’s Private Sector
The ICD’s annual work program, also signed by Engineer Hani Salem Sonbol, focuses on supporting Egypt’s private sector with $100 million in financing for small and medium enterprises (SMEs). Additionally, the program will provide funds for large private sector companies in strategic industries that contribute significantly to Egypt’s economic growth. It will also include direct investments, advisory services, and support for the development of Islamic bonds (sukuk) in alignment with Egypt’s goal of diversifying financing sources to attract investments.
Dr. Rania El-Mashat’s Remarks
Dr. Rania El-Mashat expressed her gratitude for the new agreements, emphasizing that they reflect Egypt’s ongoing efforts to enhance its economic development strategy through partnerships with international financial institutions. She highlighted the importance of these agreements in supporting the country’s objectives of bolstering food security, promoting the private sector, and enabling export opportunities for Egyptian businesses. El-Mashat also commended the key role played by both the ITFC and ICD in supporting Egypt’s trade finance needs and the growth of its private sector.
El-Mashat further emphasized the importance of programs like “Arab-Africa Trade Bridges” and “Women in Global Trade – Phase 2 (She Trades 2)”, which have been supported by the ITFC, noting that such initiatives help boost Egypt’s international trade capabilities and empower women in business.
Supporting the Private Sector
The new program for the ICD will also strengthen Egypt’s private sector by providing SMEs with financing and supporting large companies in key sectors like industry and agriculture. This aligns with Egypt’s ongoing structural reforms to increase the contributions of these sectors to the national economy and GDP.
Minister Kamel El-Wazir’s Comments
Engineer Kamel El-Wazir, Minister of Industry and Transport, praised the partnership with the ITFC and ICD, stressing their pivotal role in supporting Islamic Cooperation Organization member countries by providing innovative financial solutions and promoting sustainable economic growth. He noted the importance of such cooperation in the industrial and transportation sectors, which are essential for Egypt’s long-term development.
Dr. Sherif Farouk’s Remarks
Dr. Sherif Farouk, Minister of Supply and Internal Trade, acknowledged the vital role played by the $700 million allocated to GASC in securing Egypt’s food supply. This partnership, according to Farouk, will help ensure the country meets its strategic food needs and strengthens market stability amid emerging challenges.
Hani Salem Sonbol on ITFC’s Commitment to Egypt
Hani Salem Sonbol, CEO of the ITFC, reiterated the institution’s strong commitment to supporting Egypt. He highlighted that since 2008, the ITFC has provided Egypt with over $18.7 billion in funding for energy, food security, SMEs, and exporter programs. He affirmed that the ITFC would continue to work closely with Egypt in 2025 to enhance the cooperation with various sectors and offer new programs to empower women, youth, and SMEs.
Strengthening Egypt’s Private Sector with ICD
The ICD also pledged to strengthen its partnership with Egypt to support the country’s developmental goals through financing, advisory services, and investments in the private sector, especially SMEs. This will be done in line with Egypt’s efforts to diversify its funding sources, attract foreign investments, and promote a sustainable economic future.
