Sunday, November 13, 2016
Senegal – With the objective of supporting strategic sectors, the International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IDB) Group signed a Syndicated Murabaha Financing for USD 75 Million (CFA Franc 45 billion), in favor of the Government of Senegal, with SONACOS as executing agency. The financing is a major step for 2016-2017 groundnut campaign, SONACOS being the leading player in the Senegalese groundnut sector.
Given the critical importance of groundnut to the socio-economic situation of the country, the Government of Senegal has requested ITFC to cover part of the required funding for this groundnut season. Indeed, a substantial part of Senegal’s arable land is used to grow groundnuts and SONACOS is expected to collect between 200,000 and 300,000 tons for the new season.
The Groundnut sector, directly and indirectly, employs a significant percentage of the population which depends on the sector to make a living. It is not only a basic ingredient used in local cuisine, but also and above all, the main cash crop for farmers and an important export and revenue generating commodity for the country.
The financing agreement is now effective and ready for disbursement. The funds will be used to purchase the groundnuts from farmers and cooperatives, before processing into oil and animal feed by SONACOS. The financing is consequently expected to have a significant impact on the income of the farmers and improve their living conditions. Growth in export of finished products (groundnut oil and animal feed), will improve the country’s overall export revenues and employment level, thus contributing to poverty alleviation.