ITFC Signs a EUR 40 million Agreement with SONACOS to Finance 2021/22 Groundnut Season in Senegal
The International Islamic Trade Finance Corporation (ITFC) (ITFC-idb.org), granted a Euro 40 million financing to Senegal National Groundnut Company (SONACOS). This facility is dedicated to the post-Covid recovery of the Senegalese agriculture sector, the facility is purposed at financing part of the 2021-2022 groundnut campaign.
The financing shall cover about 45% of the financing needs of SONACOS to secure the procurement of 150,000 tons of groundnuts arising form the current harvest from farmers and to be processed into groundnut oil, animal feed, and edible groundnuts. This is to support the full recovery of the Senegalese economy as agriculture is a vital sector that contributes about 16% to the country’s GDP with revenues from the export of groundnuts totaling EUR329.3 million during the 2020/2021 agricultural season.
The operation is particularly crucial as its impact will directly contribute to the SDG 1 “No Poverty” and SDG 2 “Zero Hunger”.
This brings the total financing approved by ITFC in favor of Senegal to over USD 1.1 billion under 19 operations since the inception of ITFC in 2008.
Commenting on the signing, Mr. Nazeem Noordali, COO of ITFC stated: “ITFC’s commitment to supporting the agriculture sector, especially the groundnut sector in Senegal, is for the long term and is of great interest to us. We believe in the growth of the agriculture sector in Sub-Saharan Africa and we stand ready to support key actors such as SONACOS on projects that not only bring in financial value but directly impact farming and rural communities. That way, we are not only supporting the recovery of the national and regional economy, but we are also contributing to creating and sustaining jobs and empowering farmers.”
On his part, Mr. Modou Diagne Fada, CEO of SONACOS added that: “SONACOS’ partnership with ITFC is crucial for us. ITFC’s funding of 40 million Euros provides a much-needed resource for our farmers and it’s a fundamental step to ensure a successful 2021/2022 groundnut trading campaign in Senegal. In addition, ITFC has a great understanding of the agricultural and African realities which is crucial for developing this sector. We want to thank ITFC for the unabated support over several seasons to this strategic sector for the country.”
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$55 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.