The International Islamic Trade Financing Corporation (ITFC), a member of the Islamic Development Bank (IDB) group, has signed a syndicated agreement of €100 million with the government of Cameroon and the Société de développement du coton (Sodecoton) as the executing agency for the export of cotton and the import of various agricultural inputs.
The agreement was signed by Louis Paul Motaze, minister of economy, planning and regional development, and IDB Group governor for Cameroon, which took place at Yaoundé, Cameroon.
“ITFC approved a total financing of $370.30 million for the republic of Cameroon since its inception in 2008, and eighty per cent of the approved financing went to the agricultural sector. This financing is tailored to suit the financing needs of cotton farmers, and resembles ITFC drive to create impact on the people in our member countries,†said Abou Jallow, the Special Advisor to CEO of ITFC and General Manager of Operations, ITFC.
The financing is in line with Cameroon’s policy of promoting agricultural exports especially cotton. Sodecoton will ensure the distribution of the fertilizers, in addition to buy from farmers their raw cotton and process into cotton fibre for exporting. Cotton is one of the country’s main exports, and an important revenue generating vehicle for the country.
“This financing is directly providing means of livelihood to over 3,00,000 farmers and indirectly to over 3 million people in the north and far-north regions of Cameroon by enabling the government to provide the needed agricultural inputs to the farmers and ensure timely payment of cotton harvests of the farmers,†Louis Paul Motaze said.