These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries

ABUJA, Nigeria, October 7, 2024/APO Group/ — 

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

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

A FAMAR-sponsored panel discussion at Angola Oil & Gas explored enhancing the value chain in Angola from crude to commerce

LUANDA, Angola, October 7, 2024/APO Group/ — 

By 2040, up to 60% of the African energy matrix will be fossil fuel driven, Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association remarked at a FAMAR-sponsored panel discussion during the Angola Oil & Gas (AOG) conference on Thursday. This, he noted, highlights a fundamental need to invest more heavily in downstream infrastructure.

While efforts are being made to reduce petroleum imports, Kragha offered three recommendations to expand downstream infrastructure, strengthen regional trade and bolster energy security.

“The first is coordinated, harmonized, regional regulations – it is critical to do this. If you don’t have harmonized regulations, you won’t have harmonized markets. Secondly, you need market-based pricing and products. Lastly, you must focus on infrastructure to minimize supply chain risks. We use trucks but we should be using rails, optimizing ports and such,” he said.

Orlando Chongo, Head, Coverage in Indian Ocean and Lusophone Africa at the Trade Development Bank, emphasized the need to improve access to financing for downstream players. While plans are in place to strengthen infrastructure capacity, capital needs to be made more available.

We have new rules that are needed to be implemented to reduce greenhouse gas emissions in compliance with climate change policies

Meanwhile, in Angola, to support companies seeking investments in the country’s downstream market, the country’s downstream regulator is putting in place the requisite supportive policies. Dr. Luis Fernandes, Director General at the IRDP said that “Today, the regulatory framework allows everyone that wants to be in the market to be involved. We have new rules that are needed to be implemented to reduce greenhouse gas emissions in compliance with climate change policies. We have a legal framework that supports companies achieve this.”

For the national oil company Sonangol, expanding downstream infrastructure is a top priority. The company is prioritizing investments in refining, distribution and port infrastructure to strengthen regional trade. Three new refining projects are currently under construction, namely the 60,000 barrel per day (BPD) Cabinda project – starting operations this year -; the 100,000 BPD Soyo Refinery and the 200,000 BPD Lobito Refinery.

Other projects include the Barra do Dande Ocean Terminal. According to Mauro Graça, CEO, Sonangol Distribution and Marketing, “This will not only allow us to be self-sufficient in storage capacity but allow us to fulfil our strategic reserves. With that project, we are not only thinking about Angola, but of the region. With the Cabinda refinery, we will need more storage capacity and to be able to export. We are investing in 24,000 cubic meters in additional storage capacity. We also have a project to make a sea-line, so that larger ships can go to Cabinda to conduct operations.”

Angola’s focus on strengthening its port logistics will be instrumental in driving exports – both regionally and internationally. Sara Silva, Legal Compliance Manager at FAMAR, noted that maritime transport is imperative for global trade.

“It is proving to be the most cost-effective manner of transportation, allowing you to transport large volumes of cargo and reducing the cost per unit that you transport. It has the opportunity to connect markets, connecting Africa to the world,” she said.

In the retail sector, efforts are underway to increase the number of retail stations across the country. Óscar Sequesseque, CCO at Pumangol, shared that the company is focused on accelerating Angola’s inland fuel storage capacity. This way, Angola aims to improve access to affordable, locally-sourced fuel products.

Distributed by APO Group on behalf of Energy Capital & Power.

The investment will help Ecobank Sierra Leone to grow its loan book by increasing credit limits and extend lending tenors to up to five years

LONDON, United Kingdom, October 7, 2024/APO Group/ — 

The facility will increase lending to businesses in Sierra Leone where access to finance is limited, support local currency lending and provide longer-term loans which are generally unavailable; It demonstrates BII’s ability to act as a first mover in frontier markets, navigating risk and working with partners to create impact; This is the first investment under the Africa Resilience Investment Accelerator (ARIA) which was created by BII. 

British International Investment (BII), the UK’s development finance institution and impact investor, today announced a $25 million risk sharing facility with Ecobank Sierra Leone to boost private sector growth in high-impact sectors of the economy. The risk sharing facility, which includes a comprehensive technical assistance programme, will support Ecobank to increase lending to ambitious businesses in a frontier market where economic growth is hampered by lack of capital and investment.  

The private sector is crucial to Sierra Leone’s economy and mainly comprises small and medium-sized enterprises (SMEs) who provide employment for about 70 per cent of the population. However, they struggle to gain access to capital due to various factors including limited availability of suitable financial products, high collateral requirements, high interest rates and the prevalence of short-term loans. 

The new facility will support local currency lending, demonstrating BII’s ability to act as the first mover in frontier markets and drive impact through pioneering risk navigation strategies. The investment will help Ecobank Sierra Leone to grow its loan book by increasing credit limits and extend lending tenors to up to five years, which are not otherwise available in the market. This is expected to boost business growth, create more jobs and increase private sector contribution to Sierra Leone’s economy.  

The transaction marks a significant milestone as the first investment under the Africa Resilience Investment Accelerator (https://apo-opa.co/47YUKnK) (ARIA), which is a collaborative initiative launched by BII and co-funded with FMO, the Dutch entrepreneurial development bank, to boost investment in frontier markets such as Sierra Leone.  

The signing of this agreement with Ecobank Sierra Leone underscores BII’s pioneering role to lead investments in countries that are often overlooked by investors

The Sierra Leone economy faces challenges including a depreciating currency driven by high inflation, a large trade deficit due to over-reliance on imports, and insufficient investment in infrastructure and services. BII’s investment aims to spur economic growth and development by targeting critical sectors including renewable energy, agriculture, agro-processing, infrastructure and manufacturing.  

The announcement builds on a $50 million trade finance facility (https://apo-opa.co/3BAbPII) between BII and Ecobank in 2021, which helped the bank to deepen its reach across Africa and support supply chains in frontier markets such as Burkina Faso, Chad and Togo.  

UK Minister for Development, Anneliese Dodds said: “I am delighted to see BII announce this new risk sharing facility with Ecobank Sierra Leone. This agreement will support local currency lending, bringing much-needed capital into sectors with a high development impact, thereby contributing to job creation and economic growth. This is yet another example of BII innovating to address risks and enable development in frontier markets.” 

Samir Abhyankar, MD and Head of Financial Services, BII, commented: “The signing of this agreement with Ecobank Sierra Leone underscores BII’s pioneering role to lead investments in countries that are often overlooked by investors. The facility will be a game-changer for Sierra Leone, providing much-needed capital for ambitious local businesses to accelerate their growth, spur job creation and deepen impact. It’s an example of BII innovating and working with partners to help address pressing challenges where it matters the most.”  

​Sebastian Ashong-Katai, Managing Director, Ecobank Sierra Leone, said: “We are delighted to have secured the support of British International Investment in boosting Ecobank’s vital lending capacity for Sierra Leone businesses who are the engine room for our country’s growth, economic development and employment. This further strengthens our intent to be the bank of choice for Sierra Leone’s businesses and leverages our delivery of world class products, services, solutions, borderless digital pan-African platform and business skills training which are designed to support them in further growing their businesses.” 

Alex Kucharski, BII’s Head of West Africa for ARIA, added: “ARIA aims to unlock investment in Sierra Leone, a market full of potential. We are delighted to have enabled the investment by British International Investment into Ecobank Sierra Leone, which will bring much needed growth capital to underserved businesses in the country, showing that more investment is possible.”

Distributed by APO Group on behalf of Ecobank Transnational Incorporated.