Latest news with #tradefinance
Zawya
16 hours ago
- Business
- Zawya
International Islamic Trade Finance Corporation (ITFC)'s 2024 Annual Report Highlights Record Trade Support, Empowering Organisation of Islamic Cooperation (OIC) Economies and Expanding Global Impact
The International Islamic Trade Finance Corporation (ITFC) ( a member of the Islamic Development Bank (IsDB) Group, is proud to announce the release of its 2024 Annual Report, titled 'Reaching New Frontiers.' The report captures a landmark year showcasing a period of transformative growth, expanded geographic reach, record trade finance approvals, and strengthened commitments to sustainable and inclusive development across its Member Countries. In 2024, ITFC demonstrated agility and resilience amidst persistent geopolitical and economic challenges, prioritizing trade finance, facilitation, and trade development to support member countries' national development agendas. Highlights from the 2024 Annual Report Record Trade Finance Approvals In 2024, ITFC approved a total of US$ 7.3 billion in trade finance across 110 operations in 26 countries. Of this amount, US$ 6.7 billion was successfully disbursed Notably, 38% of the approved financing was directed toward Least Developed Member Countries (LDMCs), underscoring ITFC's commitment to inclusive development Furthermore, 41% of the total portfolio, equivalent to US$ 3 billion, was allocated to non-energy sectors such as agriculture, healthcare, and financial services ITFC successfully mobilized US$ 4.2 billion through Islamic syndications in 2024, representing 57% of its total trade finance approvals. Accelerating Intra-OIC Trade A total of US$ 4.85 billion was dedicated to promoting trade among OIC member countries, marking a 6.5% increase compared to 2023 These intra-OIC trade approvals accounted for 67% of ITFC's total trade finance operations, reinforcing the Corporation's role in fostering regional economic integration and cooperation Strengthening the Private Sector In a continued effort to support private sector growth, ITFC provided US$ 1.2 billion in financing, reflecting a 14% increase over the previous year This support reached 47 financial institutions and included engagements with 19 new clients across Africa, the Middle East, and Central Asia Delivering on Food Security Commitments To address food insecurity, ITFC approved US$ 1.75 billion in financing for agriculture and food-related operations across 10 OIC countries Since the launch of the IsDB Group's Food Security Response Program (FSRP) in 2022, ITFC has mobilized US$ 4.73 billion in food security financing, exceeding its initial commitment of US$ 4.5 billion. ITFC financing has helped Member Countries secure stable supplies of essential food commodities, reduce price volatility, and support agricultural resilience. In Tajikistan alone, ITFC's food security financing contributed to reaching over 200,000 households—benefiting nearly 900,000 individuals—by ensuring access to staple goods such as wheat, sugar, and edible oil. Sustainability Milestone ITFC launched its first Environmental and Social (E&S) Policy in October 2024 The policy rollout included a 10-year E&S action plan, a 5-year carbon reduction strategy, and strengthened governance to embed ESG principles across all operations The report also highlights that the Corporation was ranked at the top as Mandated Lead Arranger and Bookrunner in global Islamic syndications by both Refinitiv and Bloomberg, a reflection of its global leadership and strong investor confidence. Additionally, the 2024 Annual Report spotlights the achievements of ITFC's flagship programs: The Arab Africa Trade Bridges (AATB) Program actively supported the development of regional value chains by hosting targeted B2B meetings and launching Africa's first textile and leather standards program, paving the way for improved quality and competitiveness across the continent The Aid for Trade Initiative for the Arab States (AfTIAS 2.0) Program saw the implementation progress on 21 ongoing projects across Arab States, with a strategic focus on job creation, trade facilitation, and export development. These initiatives continue to empower local economies and enhance regional trade capacity Trade Connect Central Asia+ (TCCA+): ITFC advanced regional integration among six Central Asian countries through projects that promote agri-business development, investment attraction, and food security, strengthening economic ties and resilience in the region The Global SMEs Program expanded its footprint in West Africa and officially launched in Cameroon, enhancing access to trade finance and advisory services for small and medium-sized enterprises and fostering inclusive economic growth In addition to its flagship programs, ITFC delivered a diverse range of integrated trade solutions and targeted interventions in 2024 that reflect its holistic development approach. Through tailored capacity-building programs, reverse linkage initiatives, and trade facilitation tools, ITFC addressed specific needs across sectors such as energy, agriculture, finance, and trade policy. Highlights include the Indonesian Coffee Export Development Program enhancing sustainable farming practices; capacity-building workshops on Islamic finance in Nigeria, Tajikistan, and Azerbaijan; technical support to Togo and Mali's electricity sectors; and the rollout of electronic Certificates of Origin to boost cross-border trade in West Africa. With an eye on the future, ITFC remains steadfast in its commitment to addressing the evolving priorities of its Member Countries. By driving innovation, strengthening strategic partnerships, and delivering high-impact trade finance solutions, the Corporation is poised to chart new frontiers and accelerate progress toward sustainable and inclusive development across the OIC region. Read the full English version here- Read the full Arabic version here- Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC). Contact Us: Tel: +966 12 646 8337 Fax: +966 12 637 1064 E-mail: ITFC@ Social Media: Twitter: @ ITFCCORP Facebook: @ ITFCCorp LinkedIn: International Islamic Trade Finance Corporation (ITFC) ( About the International Trade Finance Corporation (ITFC) : The International Islamic Trade Finance Corporation (ITFC) is the trade finance arm 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 the socio-economic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 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.
Zawya
26-05-2025
- Business
- Zawya
Tariff uncertainty triggers scramble for cash: IFR
When US president Donald Trump announced tariffs of up to 145% in April, exporters around the world scrambled to react. Vessel tracking sites showed ships being turned around in the middle of the ocean as their cargo was redirected to alternative markets. Within days, the container port in Los Angeles normally the busiest in the US – was unusually quiet after a third of bookings were cancelled. CHART TO COME HERE Less visible – but no less significant – were the shifts in trade finance, the US$9trn market that makes the movement of goods around the world possible. As realisation set in that assumptions that had underpinned global trade for a generation or more had suddenly been thrown out the window, banks began to see a scramble for liquidity, with companies drawing down revolving credit facilities and asking for additional lines of credit as they hoarded cash for the uncertainty ahead. 'People are thinking about how they hedge against uncertainty, and how they are doing that is by making sure they've got enough cash in the right places to weather the storm – to buy themselves breathing room so they can make intelligent, strategic decisions about what their supply chains are going to look like in future,' said Natasha Condon, global head of trade sales at JP Morgan in London. 'We've seen an uptick in demand for our working capital and liquidity products.' But while the scramble for cash has been noticeable, it has been orderly so far – and certainly nothing compared to what was seen during the worst moments at the start of the pandemic. Liquidity demand has increased by about 20% compared with normal trading conditions, said bankers. During the pandemic, the stampede for cash led to a roughly three-fold increase. Indeed, that experience was a wake-up call for many risk managers, forcing change that has, in fact, helped this time around. 'A lot of clients had big liquidity buffers already coming into this and so were well prepared,' said Condon. 'I have not seen any uptick in demand anywhere near big enough for it to cause alarm – as yet. But we're still in the 90-day pause period. Nobody's quite sure what tariffs they're going to be facing at the end of that. Until people have some clarity, you may not see the sort of the reconfiguration and the response to stresses that could become apparent.' Be prepared The tariff announcements came after a particularly gruelling five years for supply chains, during which trade has had to endure one disruption after another: the pandemic, multiple wars, sanctions and one-off events such as the closure of the Suez Canal. That experience has put many companies on the front foot when it comes to understanding their supply chains to map the potential stress points caused by tariffs – and figuring out possible workarounds. The timing of the announcement was also well flagged, even if the magnitude of the tariffs came as a surprise. Many US companies frontloaded deliveries, with US imports up 41% during the first quarter compared with a year earlier. While big capex spending on new plants is on hold, core strategies are largely unchanged. 'Most of the global corporate clients I've been speaking to remain in a wait-and-see mode,' said Atul Jain, global co-head, trade finance and lending, at Deutsche Bank in Singapore. 'Despite knowing there's risk embedded in both the known and unknown-unknowns, in the absence of having any better information from which to make decisions, they're electing to press ahead with their existing core strategies.' Banks are also in a holding pattern – and that means risk-off for many. Given the uncertainty ahead and the heightened risk of defaults, many are raising the cost of funding for some clients – and cutting it off completely for others. The trend risks worsening the 'trade finance gap', the gap between requests and approvals for financing to support imports and exports, recently estimated by the Asian Development Bank at around US$2.5trn. 'Tightening credit availability intensifies borrowers' default pressures, leading to a negative spiral of shrinking financing and trade volumes,' the International Monetary Fund warned in its Global Financial Stability Report in April. 'Tariffs can also reconfigure supply chains and require new compliance processes, raising banks' costs and reducing their underwriting appetite – hence, perhaps, focusing on larger, better-known client base.' Creative solutions But markets adapt quickly. Companies have begun to get creative in recent weeks to ensure their supply chains don't fall apart because a supplier further down the line isn't able to access vital sources of finance. Supply chain finance programmes, in which buyers provide credit to their supply lines, are nothing new, but many have onboarded more suppliers over recent weeks. Some even see it as a shrewd move given that there may be some delicate conversations ahead over tariffs. 'What the supplier is getting is funding against the buyer's credit lines, so it's very efficient from a capital stack perspective,' said Condon. 'Because it is something that's often offered by stronger buyers to smaller suppliers, that funding often comes at a very favourable cost. And then, for the procurement team – having offered this benefit to their supplier – that supports them in all kinds of different negotiations, whether about payment terms, or the cost of goods, or who pays the tariffs.' Other trends in the trade finance market have also begun to intensify. Bankers say there has been a big pivot into factoring, through which companies sell on their unpaid invoices to a third party, and into other asset-based financing. The shift is part of the general scramble for liquidity to create agility. Demand for letters of credit, where a bank underwrites a trade deal and commits itself to paying up if the buyer is unable to, has also increased. 'We've seen a significant increase in volumes on the flow side of the business,' said Jain. 'That's really been driven by clients wanting to optimise their working capital, shore up liquidity, and accumulate dry powder. So we've seen top-ups on existing RCFs, factoring of large receivables and an increased interest in asset-based and inventory finance – these pre-emptive moves, mainly by larger clients, have been the tactical responses to increased uncertainty. 'But this increase in liquidity is almost entirely going to the top end of the pyramid,' Jain said, warning that the 'flight to quality' has left a broad base of the pyramid 'relatively underserved'. Opportunities The caution from global banks comes partly as a result of a macroeconomic backdrop that was already beginning to become more bleak. Global default rates have been ticking up steadily in recent years. Last month, Moody's warned that tariffs could push current default rates of around 5% above 8% within a year. Banks, understandably, have focused their support on their strongest client relationships. Complicating matters are regulatory reforms forcing banks to move away from internal models in calculating the amount of capital needing to be held against trade finance activity towards standardised models that are more capital intensive. But some banks are spotting opportunities. Local banks – including Japanese banks – are trying to make the most of the moment to win market share from their global rivals. They also point to the US Department of Defense's decision to blacklist companies such as Tencent, CATL and CXMT. They are reminding such clients that US banks cannot be seen as reliable partners because of the risk that they might – under pressure from the US government – suddenly have to cease business with them, even though CATL's Hong Kong listing involved US banks at the top of the syndicate. Regardless of what happens with the specifics of tariffs, bankers said the past few weeks have been a turning point for global trade – with the big impact taking time to appear. 'Nobody's making any big moves, but the big moves are coming,' said Condon. 'There will be a reconfiguration of global trade – it will flow through the path of least resistance. We just don't know what that path is going to be. What we do know is that there is going to be a big medium-term reconfiguration of trade. And when that does happen, there will be an impact on corporates across the globe because people will have to move supply chains.'
Zawya
25-05-2025
- Business
- Zawya
Al Baraka Bank Egypt and Al Baraka Bank South Africa strengthen economic partnership through joint foreign trade cooperation program
Cairo – Al Baraka Bank Egypt has announced the launch of a joint cooperation program in the field of foreign trade with Al Baraka Bank South Africa. The initiative aims to enhance economic and financial collaboration between the two branches through Al Baraka's digital trade platform, as part of the broader Al Baraka Banking Group's strategy to create a supportive environment for investment and trade exchange across regional markets. This initiative comes as part of the bank's ongoing efforts to offer real opportunities for exporters and importers, while enhancing trade finance mechanisms to better serve clients and support stronger economic ties among African nations. The webinar witnessed the participation of His Excellency Ahmed Ali Sherif, Egyptian Ambassador to South Africa, in addition to senior representatives from both Al Baraka Bank Egypt and Al Baraka Bank South Africa, including Mr. Mostafa Alaroussi, Deputy CEO of Corporate and Investment Banking from Al Baraka Bank Egypt; Mr. Amr Kandil, General Manager of International Banking from Al Baraka Bank Egypt; and Mr. Shabbir Chohan, CEO of Al Baraka Bank South Africa. The event also welcomed delegates from both sides, as well as prominent attendees, including ministers plenipotentiary, commercial attachés, and professionals from the economic and financial sectors. In his remarks, Mr. Mostafa Alaroussi, Deputy CEO of Corporate and Investment Banking at Al Baraka Bank Egypt, stated: "This collaboration comes at a time when African markets are witnessing accelerating growth, highlighting the importance of building strong banking partnerships that support Al Baraka Bank clients and enable them to seize opportunities across our network on the continent. Our partnership with Al Baraka Bank South Africa reflects our commitment to expanding our clients' horizons and opening new avenues for investment and trade within Africa's promising markets." He further added: "We are working to empower our clients to take full advantage of the digital trade opportunities provided by our shared platform, which accelerates transactions and offers greater flexibility in financial operations. We also believe that productive collaboration between Egypt and South Africa in this regard will enhance economic integration and contribute to the achievement of sustainable development goals across the region." The webinar concluded by affirming that this event marks a continuation of Al Baraka's successful collaboration journey among its regional units. It follows previous fruitful initiatives with branches in Turkey, Pakistan, Jordan, and Algeria. This latest step reflects the bank's ongoing commitment to expanding regional cooperation and advancing its digital platforms, thereby promoting trade integration and supporting shared economic growth. It also reaffirms Al Baraka's ambitious strategy to connect diverse markets and deliver added value to its clients and the communities it serves.
bnok24
25-05-2025
- Business
- bnok24
Al Baraka Bank Egypt and Al Baraka Bank South Africa Strengthen Economic Partnership Through Joint Foreign Trade Cooperation Program
Al Baraka Bank Egypt has announced the launch of a joint cooperation program in the field of foreign trade with Al Baraka Bank South Africa. The initiative aims to enhance economic and financial collaboration between the two branches through Al Baraka's digital trade platform, as part of the broader Al Baraka Banking Group's strategy to create a supportive environment for investment and trade exchange across regional markets This initiative comes as part of the bank's ongoing efforts to offer real opportunities for exporters and importers, while enhancing trade finance mechanisms to better serve clients and support stronger economic ties among African nations. The webinar witnessed the participation of His Excellency Ahmed Ali Sherif, Egyptian Ambassador to South Africa, in addition to senior representatives from both Al Baraka Bank Egypt and Al Baraka Bank South Africa, including Mr. Mostafa Alaroussi, Deputy CEO of Corporate and Investment Banking from Al Baraka Bank Egypt; Mr. Amr Kandil, General Manager of International Banking from Al Baraka Bank Egypt; and Mr. Shabbir Chohan, CEO of Al Baraka Bank South Africa. The event also welcomed delegates from both sides, as well as prominent attendees, including ministers plenipotentiary, commercial attachés, and professionals from the economic and financial sectors In his remarks, Mr. Mostafa Alaroussi, Deputy CEO of Corporate and Investment Banking at Al Baraka Bank Egypt, stated: This collaboration comes at a time when African markets are witnessing accelerating growth, highlighting the importance of building strong banking partnerships that support Al Baraka Bank clients and enable them to seize opportunities across our network on the continent. Our partnership with Al Baraka Bank South Africa reflects our commitment to expanding our clients' horizons and opening new avenues for investment and trade within Africa's promising markets He further added: 'We are working to empower our clients to take full advantage of the digital trade opportunities provided by our shared platform, which accelerates transactions and offers greater flexibility in financial operations. We also believe that productive collaboration between Egypt and South Africa in this regard will enhance economic integration and contribute to the achievement of sustainable development goals across the region The webinar concluded by affirming that this event marks a continuation of Al Baraka's successful collaboration journey among its regional units. It follows previous fruitful initiatives with branches in Turkey, Pakistan, Jordan, and Algeria. This latest step reflects the bank's ongoing commitment to expanding regional cooperation and advancing its digital platforms, thereby promoting trade integration and supporting shared economic growth. It also reaffirms Al Baraka's ambitious strategy to connect diverse markets and deliver added value to its clients and the communities it serves Google News تابعونا على تابعونا على تطبيق نبض جاري التحميل ...
Zawya
23-05-2025
- Business
- Zawya
Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) Insurance Cover Unlocks EUR250 Million for Infrastructure and Trade Growth in Six African Member States
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) ( a Shariah-based multilateral insurer and member of the Islamic Development Bank Group, today signed a Non‑Honouring of Financial Obligations for Multilateral Development Banks (NHFO‑MDB) policy to secure a EUR250 million financing package arranged by Standard Chartered. The agreement, concluded on the sidelines of the IsDB Group Annual Meetings 2025 in Algiers, was signed by Dr. Khalid Khalafalla, Chief Executive Officer of ICIEC and Mr. Sujithav Sarangi, Executive Director, Development&Agency Finance at Standard Chartered Bank. ICIEC's NHFO‑MDB policy insures the financing provided by Standard Chartered (Hong Kong), Standard Chartered (Kenya) and DZ Bank to the Eastern and Southern African Trade and Development Bank (TDB). The funds will support an eligible portfolio of infrastructure, energy and trade‑finance initiatives in six common member states of ICIEC and TDB—Mozambique, Uganda, Comoros, Djibouti, Egypt and Senegal—by providing credit enhancement to the lenders and thereby unlocking critical capital for high‑impact projects. Dr Khalafalla said, 'By providing ICIEC's NHFO-MDB insurance cover to this landmark facility, we are doing more than mitigating risk—we are fast‑tracking development. Such facility empowers TDB to accelerate infrastructure, energy and trade projects that will light homes, connect markets and create dignified jobs across six of our common member states. It is a clear demonstration of how Islamic finance can mobilize private resources for inclusive, sustainable growth.' Sujithav Sarangi, Executive Director, Development&Agency Finance, Standard Chartered says: 'We are proud to partner with ICIEC on yet another impactful project. The success of this project is rooted in the significant, and tangible, benefits this development will bring. Our enduring partnership with ICIEC exemplifies our shared mission to drive meaningful impact in the communities and markets we support.' The transaction underscores ICIEC's commitment to deploy innovative risk‑mitigation solutions that advance the IsDB Group's objective of fostering inclusive, resilient and sustainable development across its member countries. Distributed by APO Group on behalf of Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Follow us on: X : Facebook : LinkedIn : YouTube : Instagram : About The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC): ICIEC commenced operations in 1994 to strengthen economic relations between OIC Member States and promote intra-OIC trade and investments by providing risk mitigation tools and financial solutions. The Corporation is the only Islamic multilateral insurer in the world. It has led from the front in delivering a comprehensive suite of solutions to companies and parties in its 50 Member States. ICIEC, for the 17th consecutive year, maintained an "Aa3" insurance financial strength credit rating from Moody's, ranking the Corporation among the top of the Credit and Political Risk Insurance (CPRI) Industry. Additionally, ICIEC has been assigned a First-Time 'AA-' long-term Issuer Credit Rating by S&P with Stable Outlook. ICIEC's resilience is underpinned by its sound underwriting, reinsurance, and risk management policies. Cumulatively, ICIEC has insured more than USD 121 billion in trade and investment. ICIEC activities are directed to several sectors - energy, manufacturing, infrastructure, healthcare, and agriculture. For more information:
