The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, had signed an agreement with The Gambia worth $45 million in support of the West African country's energy sector.
The agreement was concluded over the past weekend at the IDB Group Governors’ lunch, a side-line event at the World Bank/IMF meeting held in Washington DC, in the US.
Minister of Finance and Economic Affairs of The Gambia, Amadou Sanneh and Eng. Hani Salem Sonbol, chief executive officer of ITFC, signed the treaty. Also present was Dr Bandar Hajjar, IDB Group President.
According to a statement, the main purpose of the pact is for the financing of the imports of energy and petroleum products.
“ITFC will excel efforts to mobilise financial resources from banks, and financial institutions to finance these imports,” read the statement.
Commenting on the agreement, Sonbol said, “As a leading Islamic Trade Finance Solutions Provider, this agreement is a milestone to boost the main sector of The Gambian economy.
“Energy is critical for supplying the country with fuel and electricity, in addition to development, this signing contributes to intra OIC trade as the products to be financed would be sourced mainly from OIC member countries.”
The statement also emphasised that the sourcing of adequate electricity generation will have a positive impact on electricity prices and help reduce the associated costs of insecurity and unemployment in The Gambia.
ESI Africa previously reported that The Gambia has engaged in a memorandum of understanding with the Senegalese government that will lead to the fruition of a cross-border electricity initiative, strengthening energy imports cooperation between the two countries.
The Gambian petroleum and energy minister, Fafa Sanyang, led a team of officials to Dakar for meetings with Senegalese counterparts. Read more...
Through this initiative, most rural parts of The Gambia are expected to receive to 24-hour electricity access, which is seen as a significant milestone for the country's rural electrification programme.
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