Cameroon Renews Framework Agreement of Cooperation with ITFC

In a move aimed at fortifying international trade and economic development, Cameroon has renewed its framework agreement of cooperation with the International Islamic Trade Finance Corporation (ITFC).

The documents were signed on April 27, 2024, in Riyadh, Saudi Arabia, by Alamine OUSMANE MEY, the Minister of Economy, Planning, and Territorial Development, and Hani Salem Sonbol, the Director-General of ITFC.

The renewal of the agreement occurred on the sidelines of the 49th Annual Meeting of the Board of Governors of the Islamic Development Bank Group, held from April 27 to 30 in Riyadh. This reaffirmation follows the perceived success of the previous agreement signed in April 2021.

Under the previous framework agreement, ITFC mobilized 602.4 million US dollars out of a total commitment of 750 million US dollars in favor of Cameroon. These funds were used for various purposes, including financing cotton campaigns by SODECOTON, imports of petroleum products by SONARA, and imports of raw materials for ALUCAM.

Looking ahead, the new framework agreement pledges an increased commitment from ITFC, with a budget of 800 million US dollars allocated to Cameroon over the next three years. These resources will be directed towards financing operations in sectors such as agriculture, energy, small and medium enterprises (SMEs), healthcare, and capacity building.

Read Also: Cameroon Red Cocoa Inches Closer to Labeling

Specifically, the funds will support initiatives such as marketing agricultural commodities, providing essential energy products, supporting SMEs through financing lines, and enhancing access to healthcare services and medical equipment. Additionally, ITFC remains dedicated to regional integration and collaboration, exemplified by its participation in initiatives like the “Arab-Africa Trade Bridges” Initiative (AATB).

The renewal of the framework agreement underscores Cameroon’s commitment to fostering economic growth and international trade cooperation. With enhanced funding and a shared vision for sustainable development, this partnership aims to unlock new opportunities and drive inclusive growth for the nation.

Image Source: MINEPATE