The International Islamic Trade Finance Corporation (ITFC), has signed a US$117.94mn syndicated agreement with the government of Cameroon and Sodecoton for the export of cotton and import of agricultural inputs
The agreement was signed by Louis Paul Motaze, minister of economy, planning and regional development, and governor of Islamic Development Bank (IDB) Group for Cameroon.
The financing is in line with Cameroon’s policy of promoting agricultural exports especially cotton. Sodecoton will ensure the distribution of the fertilisers, in addition to buy from farmers their raw cotton, which is one of the country’s main exports, and an important revenue generating vehicle.
Abou Jallow, special advisor to the CEO of ITFC and general manager of operations at ITFC, commented, “ITFC approved a total financing of US$370.30mn for the republic of Cameroon since its inception in 2008, and 80 per cent of the approved financing went to the agricultural sector.”
“This financing is tailored to suit the financing needs of cotton farmers, and resembles ITFC drive to create impact on the people in our member countries,” Jallow added.
Motaze said, “This financing is directly providing means of livelihood to more than 300,000 farmers and indirectly to more than three million people in the North and Far-North regions of Cameroon by enabling the government to provide the needed agricultural inputs to the farmers.”
Cameroon is one of the main oil-producing countries in Africa, thus in complementing the government’s agricultural support programme, ITFC is contributing to the government’s policy of diversifying the economy through the promotion of agriculture.