The International Islamic Trade Finance Corporation (ITFC) Reports Remarkable Achievements Supporting Trade Finance and Development in the Organisation of Islamic Cooperation (OIC) Member Countries in 2023

International Islamic Trade Finance Corporation (ITFC)

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, proudly announces the release of its 2023 Annual Development Effectiveness Report (ADER), titled “Sustainable Trade Horizons.” The report highlights ITFC's substantial trade finance and development achievements, demonstrating the Corporation’s continued commitment to fostering economic growth, regional integration, and sustainable development across OIC member countries.

In 2023, ITFC demonstrated remarkable resilience and adaptability, navigating a year marked by persistent global challenges, including economic disruptions, supply chain vulnerabilities, and climate change impacts. Through strategic trade financing and development initiatives, ITFC contributed significantly to the socioeconomic stability of its member countries, focusing on sustainable growth and regional integration.

Commenting on the 2023 results, Eng. Hani Salem Sonbol, CEO of ITFC, declared: “Despite the challenges during the year, the ITFC team delivered impressive results. Our ADER report demonstrates the gigantic impact of our work and partnerships on local and regional economies across our member countries. The 2023 results not only lead us to reflect on a successful journey but also allow us to strengthen our internal structure to be even more effective in delivering value to OIC member countries in 2024 and horizons beyond.

Key Highlights of the 2023 ADER

  • Filling trade finance gaps. ITFC disbursed US$6 billion in trade finance, diversifying support beyond traditional sectors. ITFC's financing operations covered 22 countries, underscoring its widespread impact across all OIC regions. The Corporation disbursed a record US$2.5 billion in financing to Least Developed Countries (LDCs), now constituting 42% of its portfolio;
  • Sustaining Critical Supply Chains. In addressing food security needs, ITFC disbursed US$1.5 billion reaching approximately 28 million households with access to affordable, safe, and sufficient food. Its energy financing, worth US$3.4 billion, supported reliable power supply to an estimated 12 million households;
  • Support to Farmers. ITFC provided US$155 million in pre-export finance enabling timely payments to over 480,000 farmers and fostering substantial agricultural exports. This financing helped stabilize farmer incomes and supported the agricultural sector's growth;
  • Support for SMEs and the Private Sector. ITFC empowered 297 SMEs and corporates through 23 partner banks, driving financial inclusion and strengthening Islamic finance literacy through targeted training and capacity-building programs;
  • Fostering Regional Trade. ITFC extended US$4.6 billion to finance trade between OIC member countries in 2023, leading impactful programs like the Arab Africa Trade Bridges Program and the Aid-for-Trade Initiatives in the Arab States (Phase II) to strengthen regional supply chains and support inclusive trade.

Sustainable Trade Horizons. A Commitment to ESG Leadership

This year's ADER, themed reflects ITFC's unwavering focus on promoting sustainability and its forward-looking commitment to Environmental, Social, and Governance (ESG) leadership. ITFC has embarked on a transformative journey towards ESG excellence, designing a climate change policy and an ambitious Ten-Year Action Plan. By integrating ESG considerations into its operations, ITFC strives to lead the way in promoting responsible and sustainable trade practices.

Selected ITFC Contributions to the Sustainable Development Goals (SDGs)

ITFC's work contributed to multiple SDGs, including:

  • SDG 1: No Poverty. US$6 billion in trade finance disbursed, US$155 million in income redistributed to smallholder farmers, US$2.5 billion disbursed to LDMCs;
  • SDG 2: Zero Hunger. More than US$1.6 billion disbursed to the food and agriculture sector, and over 28 million households benefiting from food financing;
  • SDG 7: Affordable and Clean Energy. US$3.4 billion disbursed for energy inputs, providing an estimated 12 million households with access to electricity.
  • SDG 17: Partnerships for the Goals. US$3.4 billion in trade finance mobilized, US$4.6 billion in intra-OIC trade financing.

The 2023 Annual Development Effectiveness Report by ITFC emphasizes the Corporation’s crucial role in promoting sustainable development through trade finance. The accomplishments highlighted in this report demonstrate ITFC's strategic vision and dedication to improving lives through trade. Looking ahead, ITFC is committed to expanding its reach to underserved communities, accelerating diversification, integrating ESG principles, and scaling up private sector impact. The corporation aims to continue shaping the future of trade finance and contribute to a more prosperous and sustainable world.

Access the full report [Here (https://apo-opa.co/3xTGoYo)] to explore the comprehensive impact and insights from ITFC's 2023 initiatives.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

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E-mail: ITFC@itfc-idb.org

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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 the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$75 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.

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Source: Apo-Opa

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