Egypt to receive $250 mln boost for economic resilience from AFC, ITFC

Ahram Online , Tuesday 16 Jan 2024

Africa Finance Corporation (AFC) and International Islamic Trade Finance Corporation (ITFC) are set to extend a $250 million Sharia-compliant trade loan to Egypt, providing a vital shot in the arm for the country's economic resilience.



The one-year facility will be split equally between two crucial entities: the Egyptian General Petroleum Corporation (EGPC) and the General Authority for Supply Commodities (GASC), according to a statement on Tuesday.  

This targeted approach aims to ensure uninterrupted critical imports of petroleum products and agricultural commodities – wheat, corn, oils, and sugar – to safeguard both energy and food security for Egypt's 104 million citizens.

Amid a severe USD shortage, Egypt is reliant on external funding to secure a portion of its substantial subsidies bill, which amounted to EGP 342 billion (more than $11 billion) in 2023, as per Prime Minister Mostafa Madbouly.

The country is seeking to close a $17 billion financing gap by 2026, projected to be between $6 and $8 billion for FY2023/2024.

"This transaction underscores AFC's commitment to drive Africa's transformation by fostering local manufacturing, value creation, and job growth. We are honoured to partner with ITFC on this landmark deal, supporting Egypt's Vision 2030 agenda and building upon our successful collaborations," said AFC President and CEO Samaila Zubairu.

Hani Salem Sonbol, CEO of ITFC, echoed the sentiment, highlighting the importance of collaboration during times of economic uncertainty.

In September 2021, the AFC announced Egypt as its 32nd member state, pledging to invest $1 billion in the country. 

Established in 2007, AFC is a catalyst for private sector-led infrastructure investment across Africa. The corporation has 42 member countries and a $12.7 billion investment portfolio across Africa.

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