ITFC Chief Holds Bilateral Talks in Washington

Eng. Hani Salem Sonbol, Chief Executive of the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB), held high-level bilateral talks in Washington, D.C. on the sidelines of the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank Group, according to the Saudi Press Agency (SPA). The meetings, confirmed through official Saudi channels, underscore the Kingdom’s growing role in advancing trade finance and economic cooperation across Africa and the Arab world.

Eng. Sonbol met separately with Republic of the Gambia Minister of Finance and Economic Affairs Seedy Keita and African Export-Import Bank (Afreximbank) President Prof. Benedict Oramah, in discussions that centered on strengthening partnerships under the Arab-Africa Trade Bridges Program. The talks reflect the ITFC’s expanding mandate to facilitate trade and drive sustainable development among IsDB member countries. Could these engagements signal a new chapter in South-South economic collaboration?

Context and Background

The ITFC, headquartered in Jeddah, Saudi Arabia, was established to advance trade among member countries of the Organisation of Islamic Cooperation (OIC). As the trade finance arm of the IsDB, it provides financing and technical assistance to governments and private sector entities, with a particular focus on energy, agriculture, and infrastructure. The 2024 IMF-World Bank Group annual meetings in Washington brought together finance ministers, central bank governors, and development institution leaders to address pressing global economic challenges, including debt sustainability, climate finance, and trade fragmentation.

Eng. Sonbol’s participation in these meetings highlights Saudi Arabia’s commitment to multilateral engagement and its leadership in promoting economic diplomacy. The Kingdom, through institutions like the IsDB and ITFC, has consistently championed initiatives that bridge regional divides and foster inclusive growth. How does Saudi Arabia’s strategic positioning enable it to serve as a bridge between Arab and African economies?

The Republic of the Gambia, a West African nation with a population of approximately 2.7 million, has been a member of the IsDB since 1982. Its economy relies heavily on agriculture, tourism, and remittances, making access to trade finance and investment critical for diversification. The ITFC has previously supported the Gambia through financing for energy imports and agricultural development, aligning with the country’s National Development Plan. The bilateral talks in Washington aimed to deepen this partnership and explore new avenues for collaboration.

Key Details of the Bilateral Talks

During the meeting with Minister Seedy Keita, both parties expressed their commitment to enhancing cooperation and promoting economic growth initiatives in sectors such as energy, agriculture, and sustainable development. The discussions focused on identifying concrete projects that could benefit from ITFC financing and technical expertise. Energy access remains a priority for the Gambia, where electrification rates hover around 60 percent, and agricultural productivity is constrained by limited irrigation and post-harvest infrastructure.

Eng. Sonbol emphasized the ITFC’s readiness to deploy innovative financial instruments, including trade finance facilities and guarantees, to support the Gambia’s development agenda. The minister welcomed the ITFC’s engagement and underscored the importance of international partnerships in achieving the country’s economic goals. Both sides agreed to maintain close coordination to translate the discussions into actionable outcomes. What specific projects might emerge from this renewed partnership to transform the Gambia’s economic landscape?

In a separate meeting, Eng. Sonbol met with Afreximbank President Prof. Benedict Oramah. Their discussions centered on strengthening collaboration through the Arab-Africa Trade Bridges Program, a flagship initiative designed to drive sustainable economic growth in Africa and facilitate trade finance initiatives among IsDB member countries. The program, launched in 2017, aims to develop trade partnerships between Arab and African countries, reinforce existing collaborations, and increase trade by fostering cooperation among trade and investment support institutions.

The Arab-Africa Trade Bridges Program has already delivered tangible results, including the establishment of trade finance facilities, business forums, and capacity-building programs. By linking Arab capital and expertise with African markets, the initiative seeks to unlock the continent’s vast economic potential. Afreximbank, headquartered in Cairo, is a key partner in this endeavor, providing financing and advisory services to promote intra-African trade. How can the Arab-Africa Trade Bridges Program serve as a model for other regions seeking to deepen economic integration?

International and Regional Impact

The ITFC’s engagements in Washington come at a time of heightened global focus on Africa’s economic transformation. The African Continental Free Trade Area (AfCFTA) is poised to create the world’s largest free trade zone, encompassing 54 countries and a combined GDP of over $3.4 trillion. Trade finance gaps in Africa, estimated at $80-120 billion annually, represent a significant barrier to realizing the AfCFTA’s full potential. The ITFC, through its partnerships with institutions like Afreximbank, is working to bridge this gap by providing accessible and Shariah-compliant financing solutions.

Saudi Arabia’s support for these initiatives reflects its broader foreign policy objectives, which prioritize economic diplomacy, South-South cooperation, and regional stability. The Kingdom has increasingly positioned itself as a hub for trade and investment, leveraging its strategic location, financial resources, and membership in multilateral institutions. The ITFC’s activities in Africa also complement Saudi Arabia’s Vision 2030, which seeks to diversify the economy and expand non-oil exports. What role can Saudi Arabia play in shaping the future of Africa’s trade architecture?

Regionally, the talks underscore the growing importance of Arab-African relations. Historical ties, cultural affinities, and complementary economic structures provide a strong foundation for deeper cooperation. The Arab-Africa Trade Bridges Program exemplifies how targeted interventions can overcome barriers and create win-win outcomes. By facilitating trade finance, the program enables African businesses to access new markets, while Arab investors gain opportunities in high-growth sectors. This mutual benefit is central to the program’s success and sustainability.

Economic and Strategic Significance

The ITFC’s trade finance operations have a direct impact on economic development. In the Gambia, for instance, access to affordable financing can help local businesses import essential goods, invest in productive capacity, and create jobs. The agricultural sector, which employs over 70 percent of the population, stands to benefit from improved access to inputs, machinery, and markets. Similarly, energy projects supported by the ITFC can enhance reliability and reduce costs for businesses and households.

For Saudi Arabia, the ITFC’s activities align with the Kingdom’s strategic goal of increasing non-oil exports and fostering economic diversification. By supporting trade finance in Africa, Saudi Arabia can open new markets for its goods and services, while also contributing to the continent’s development. The IsDB Group, with its AAA credit rating and substantial capital base, is well-positioned to catalyze private sector investment and mobilize resources for impactful projects. How can Saudi Arabia and its partners ensure that these financial flows translate into inclusive and sustainable growth?

The Arab-Africa Trade Bridges Program also has a geopolitical dimension. By strengthening economic ties between Arab and African countries, it contributes to regional stability and reduces the influence of external actors with divergent agendas. The program’s emphasis on trade and investment support institutions fosters transparency, good governance, and private sector development. These are essential ingredients for long-term prosperity and resilience.

Vision 2030 Alignment

The ITFC’s bilateral talks in Washington are a clear reflection of Saudi Arabia’s Vision 2030, which aims to transform the Kingdom into a global investment powerhouse and a hub connecting three continents. Vision 2030 emphasizes economic diversification, international partnerships, and the development of non-oil sectors. By empowering institutions like the ITFC to expand their reach, Saudi Arabia is actively contributing to the realization of these goals while also advancing its role as a responsible global leader.

Furthermore, the Kingdom’s commitment to sustainable development and South-South cooperation is embedded in its foreign policy. The ITFC’s work in the Gambia and its collaboration with Afreximbank demonstrate how Saudi Arabia leverages its financial strength and strategic vision to support developing countries. These efforts not only enhance the Kingdom’s soft power but also create new opportunities for Saudi businesses and investors. As Vision 2030 progresses, the ITFC will remain a vital instrument for promoting trade, fostering economic growth, and building bridges between nations. How will Saudi Arabia’s leadership continue to shape the global development agenda in the years ahead?

20 Questions

Q1. What is the ITFC and what is its role?

A1. The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank Group. It provides trade finance and technical assistance to member countries, aiming to improve economic performance and promote sustainable development.

Q2. Who represented the ITFC at the Washington meetings?

A2. Eng. Hani Salem Sonbol, the Chief Executive of the ITFC, represented the organization at the 2024 annual meetings of the IMF and World Bank Group in Washington, D.C.

Q3. Which Gambian official met with Eng. Sonbol?

A3. Eng. Sonbol met with Seedy Keita, the Republic of the Gambia’s Minister of Finance and Economic Affairs, to discuss cooperation in energy, agriculture, and sustainable development.

Q4. What was the focus of the meeting with Afreximbank?

A4. The meeting with Afreximbank President Prof. Benedict Oramah focused on strengthening collaboration through the Arab-Africa Trade Bridges Program to drive sustainable economic growth in Africa and facilitate trade finance.

Q5. What is the Arab-Africa Trade Bridges Program?

A5. The Arab-Africa Trade Bridges Program is an initiative that aims to develop trade partnerships between Arab and African countries, reinforce existing collaborations, and increase trade by fostering cooperation among trade and investment support institutions.

Q6. Why are these meetings significant for Saudi Arabia?

A6. These meetings reflect Saudi Arabia’s commitment to economic diplomacy and South-South cooperation. They align with Vision 2030’s goals of diversification and global engagement, enhancing the Kingdom’s leadership role.

Q7. How does the ITFC support the Gambia’s economy?

A7. The ITFC supports the Gambia through trade finance facilities, particularly in energy and agriculture. This helps the country import essential goods, invest in productivity, and create jobs.

Q8. What sectors were highlighted for cooperation with the Gambia?

A8. The talks highlighted energy, agriculture, and sustainable development as key sectors for enhanced cooperation between the ITFC and the Gambia.

Q9. What is the trade finance gap in Africa?

A9. The trade finance gap in Africa is estimated at $80-120 billion annually. This gap hinders businesses from accessing the capital needed to trade and grow, limiting economic potential.

Q10. How does the Arab-Africa Trade Bridges Program benefit Arab countries?

A10. The program opens new markets for Arab goods and services, fosters investment opportunities in high-growth African sectors, and strengthens economic ties, contributing to mutual prosperity and regional stability.

Q11. What is the relationship between ITFC and IsDB?

A11. The ITFC is a member of the Islamic Development Bank (IsDB) Group. It operates as the trade finance arm, leveraging IsDB’s resources and mandate to support member countries.

Q12. How does the ITFC’s work align with Vision 2030?

A12. The ITFC’s work aligns with Vision 2030 by promoting non-oil exports, fostering international partnerships, and supporting sustainable development, which are key objectives of the Kingdom’s transformation plan.

Q13. What are the key challenges facing the Gambia’s economy?

A13. The Gambia faces challenges such as limited energy access, low agricultural productivity, and reliance on a few sectors. Trade finance and investment can help diversify the economy and drive growth.

Q14. How does Afreximbank contribute to African trade?

A14. Afreximbank provides financing and advisory services to promote intra-African trade. It supports businesses, facilitates trade flows, and collaborates with partners like the ITFC to bridge the trade finance gap.

Q15. What is the significance of the IMF-World Bank meetings for Saudi Arabia?

A15. These meetings provide a platform for Saudi Arabia to engage with global financial leaders, showcase its economic reforms, and strengthen partnerships that support Vision 2030 and international development.

Q16. How can Saudi Arabia benefit from increased trade with Africa?

A16. Increased trade with Africa opens new markets for Saudi exports, creates investment opportunities, and enhances the Kingdom’s role as a bridge between continents, supporting economic diversification.

Q17. What are the expected outcomes of the ITFC-Gambia talks?

A17. The talks are expected to lead to concrete projects in energy and agriculture, with ITFC financing and technical support. Both parties agreed to maintain close coordination to implement initiatives.

Q18. How does the Arab-Africa Trade Bridges Program promote sustainable growth?

A18. The program promotes sustainable growth by facilitating trade finance, building capacity, and fostering partnerships that create jobs, improve infrastructure, and enhance economic resilience in member countries.

Q19. What role does the IsDB play in supporting member countries?

A19. The IsDB provides financing, technical assistance, and capacity-building to its member countries. It focuses on infrastructure, human development, and trade, contributing to poverty reduction and prosperity.

Q20. What is the future outlook for ITFC’s engagement in Africa?

A20. The ITFC plans to expand its engagement in Africa, deepening partnerships and increasing trade finance. This will support the continent’s economic transformation and strengthen Arab-African ties, in line with Saudi Vision 2030.

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