The Gambia government has signed a US$45 million Murabaha Financing Agreement with the International Islamic Trade Finance Corporation (ITFC) to boost the country’s energy sector. ITFC is a member of the Islamic Development Bank (IsDB) Group.
According to a statement from ITFC, the agreement was signed by Amadou Sanneh, Minister of Finance and Economic Affairs of The Gambia who is also a governor of the Islamic Development Bank, and Eng. Hani Salem Sonbol, Chief Executive Officer of ITFC.
The signing ceremony took place at the conclusion of the IsDB Group Governors’ lunch on the sidelines of the World Bank/IMF meeting held in Washington DC, with the presence of H.E Dr. Bandar Hajjar, IsDB Group President.
Eng. Hani Salem Sonbol, CEO ITFC 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 energy sector in The Gambia is a key driver of economic activities. The sector supports key industries such as manufacturing, agriculture and services. Therefore, electricity generation and supply is vital to every sector of the Gambian economy. The sourcing of adequate electricity generation will have a positive impact on electricity prices and help reduce the associated costs of insecurity and unemployment.
The financing falls under the framework agreement signed with The Gambia in May 2017, for a three years period, during the IsDB Group’s 42nd Annual Meeting that took place in Jeddah, Saudi Arabia, with the total amount of US$210 Million in support of its strategic sectors.