Somali Magazine October 13, 2023- The International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Development of the Private Sector (ICD), members of the Islamic Development Bank Group (IsDB), and the Kingdom of Morocco signed a tripartite Memorandum of Understanding (MoU).
This agreement was signed by Nadia Fattah Al Alaoui, Minister of Economy and Finance of the Kingdom of Morocco, and Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation and Acting CEO of the Islamic Corporation for the Development of the Private Sector.
The signing took place during a meeting held between the two parties on the sidelines of the Annual Meetings of the World Bank and the International Monetary Fund held in Marrakech, Kingdom of Morocco.
The MoU aims to facilitate cooperation between all parties in several fields, as it focuses on the importance of the energy sector as a driver of economic and social development in the attractive Kingdom. The two institutions intend to support the energy sector by financing state-owned companies and private companies. It also seeks to enhance financing for small and medium-sized companies and transfer expertise in agriculture from Morocco to the countries of the Organization of Islamic Cooperation.
In addition, the two institutions focus on supporting public-private partnership projects, in addition to providing financing in diverse sectors such as manufacturing, services, mining, and infrastructure. This cooperation also seeks to achieve food security and enhance knowledge and financial exchange between the Kingdom of Morocco and the African and Arab member states.
Both institutions also announced the Country Working Program for cooperation with the Kingdom of Morocco, where the country work program of ITFC for the period 2024-2026 covers new financing of up to US$100 million to support imports of strategic goods and enhance the export efforts of Moroccan companies.
This includes strengthening relations with strategic partners in Morocco and encouraging Moroccan institutions to participate in ITFC’s projects to promote Moroccan exports in key sectors such as energy and agriculture.
The program also includes providing trade financing facilities to state-owned entities, financial institutions, and Moroccan companies, in addition to developing trade in cooperation with the Kingdom and supporting the establishment of Moroccan logistics platforms in selected African countries.
This comes within the framework of cooperation to transfer Moroccan expertise and knowledge to other countries to enhance human and economic development.
In terms of the Country Working Program of ICD, the institution aims to enhance cooperation with the Kingdom of Morocco in the period from 2024 to 2026.
It is worth noting that the institution has made a strategic investment in the shares of the Al Akhdar Bank, in partnership with the Agricultural Credit of Morocco, where the institution owns 49% of Bank shares. ICD also announced that within the new country program, it will approve new financing and investments worth US$100 million for the benefit of Moroccan entities in order to implement local and cross-border projects. In addition, the ICD remains ready to assist Morocco in developing its sovereign sukuk programme.
The Institution also seeks to enhance financial inclusion, financing small and medium enterprises, and participatory financing in the Kingdom of Morocco. This cooperation will enhance economic development and sustainability in the Kingdom of Morocco and will deepen relations between the Islamic Corporation for the Development of the Private Sector and the Kingdom.