Islamic financial body ITFC tries to help Senegal ride out Covid crisis

By Andrei Skvarsky.

The International Islamic Trade Finance Corporation (ITFC) has provided a murabaha (Sharia-compliant) loan of 8m euros ($9m) to the Islamic Bank of Senegal to support operations within the African country’s private sector, traumatised by the Covid-19 pandemic.

The money is planned to advance trade between Senegal, which is a predominantly Muslim country, and other member states of the Organisation of Islamic Cooperation (OIC), according to a statement from the ITFC, which is part of the Islamic Development Bank Group.

It is also expected to support about 1,000 jobs in food, distribution and other companies, the ITFC said.

There are about 300,000 micro, small and medium-sized enterprises in Senegal. They make up about 90 per cent of businesses in the country with a population of 16.7m, according to the ITFC.

Since its inception in 2008, the ITFC has provided Senegal with more than $764m of funding, according to the corporation, which, as the Islamic Development Bank, is based in Jeddah, Saudi Arabia.

The ITFC’s mandate is to promote trade among OIC member nations and between them and the rest of the world. Senegal is one of the organisation’s 57 member states.

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