The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, signed a EUR 107 Million Murabaha Financing Agreement (CFA franc 70 billion) to finance Burkina Faso 2017/2018 Cotton Season with SOFITEX (the national cotton company) as executing agent.
This transaction is in line with the new USD 450 million Framework Agreement, signed in May 2017, with the Government of Burkina Faso for the coming 3 years.
The EUR 107 Million Murabaha Financing Agreement was signed by Eng. Hani Salem Sonbol, CEO, ITFC, and Mr. Wilfried Yameogo, CEO, SOFITEX (representing Burkina’s Minister of Economy, Finance & Development).
Highlighting the importance of such agreements in terms of supporting trade finance activities in Burkina Faso, Eng. Hani Salem Sonbol said: “ITFC’s support for the Cotton sector in Burkina Faso is in line with its strategy of prioritizing its financing to the key sectors driving economic growth and income generation for the people in Member Countries.”
He further explained that the proposed operation is to consolidate ITFC's financing package for Burkina, leveraging on the Corporation's ability to mobilize resources from the market while positioning itself as the "Cotton Bank of West Africa”.
This financing agreement will support the purchase of seed cotton from farmers and cooperatives. This will also have a positive impact on the income of the farmers and improve their living conditions.
Burkina Faso has benefited from more than USD 925 million of financing since ITFC’s inception in 2008.